Amarillo Gold (AGC-V) Oct 24, '16 is pleased to announce it has appointed Pollitt & Co. Inc. to act as agent, on a best-efforts basis, for a private placement to raise gross proceeds of up to $2 million by issuing 6,250,000 common shares of the Company at a price of $0.32 per share.
The Company intends to use the net proceeds of the Private Placement for general working capital purposes and further development of the Mara Rosa Project, including:
-Update pre-feasibility study (the "PFS")
-Tailings engineering
-Related activities in preparation for a bankable feasibility study (the "BFS")
The securities issued pursuant to the Private Placement will be subject to a four-month hold period under applicable Canadian securities laws.
In consideration for their services, the Agent will receive a cash commission equal to 6% of the gross proceeds from the sale of the common shares. Pollitt & Co. Inc will also receive Broker Warrants that equal 6% of the number of shares issued in this financing. The broker Warrants will be exercisable at the same price of the financing for a period of 24 months starting from the date of the closing.
This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units, Common Shares or Warrants (the "Securities") in the United States or to, or for the account or benefit of, any U.S. person. The Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any U.S. person unless an exemption from such registration requirements is available. "United States" and "U.S. person" are as defined in Regulation S under the U.S. Securities Act.
About Amarillo Gold Corp.
Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. It is the Company's policy to strive to do this in a sustainable, safe way using best practices whilst benefiting our shareholders and the communities we work in. The Company's principal projects are the Mara Rosa Project in the state of Goias, and the Lavras do Sul Project in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa contains 8.887MT @ 1.98 g/t Au Measured, 13.149MT @1.53 g/t Au Indicated and 7.119MT @ 1.26 g/t Au Inferred. (A NI 43-101 resource as independently determined by Australian Exploration Field Services Pty. Keith Whitehouse QP July 2016). The Mara Rosa Gold Project has received a positive economic assessment from a Pre-Feasibility study and Amarillo has obtained the LP, the first stage of a three stage permitting process. The Posse Deposit was successfully mined by Western Mining Corporation (WMC) during the 1990s (mined areas are excluded from the above-stated resource figures), and is located in an area of excellent infrastructure: approximately 35 km NE of Yamana's Chapada open pit Cu-Au operation, some 80 km NE of Yamana's Pilar Au project (in feasibility), 95 km NW of Votorantim's Niquelandia Ni laterite mine, 105 km from NE of Serra Grande's underground Au mine, and 105 km NNW of Anglo American's Ni laterite project at Barro Alto.
The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising of more than 19 prospects centered on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 meters of drilling. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold Indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces of gold Inferred from 12.9 MT at 0.74 g/t Au using a 0.3 g/t cut-off grade in a NI 43-101 resource as independently determined by Atticus Consulting in 2010, Anthony Amberg, QP. Lavras do Sul is also located near excellent infrastructure. The Company also has a portfolio of earlier stage projects and all properties under Amarillo's management are located in areas of good infrastructure and mining-friendly communities.
Frank Baker, a metallurgist with over 30 years' experience and also a member of the AUSIMM and IOM3 is the qualified person for this news release as per the guidelines of the NI-43-101.
ON BEHALF OF THE BOARD OF DIRECTORS AMARILLO GOLD CORP.
Per: "Buddy Doyle"
Buddy Doyle, President & CEO
Contacts:
Amarillo Gold Corp.
+1-604-760-0325 (Canada)
+55-31-3261-5974 (Brazil)
Or Scott Eldridge
+1-604-722-5381
scott@amarillogold.com |
