Gran Colombia Gold (GCM-T) Participate in Western Atlas Resources (WA-V) PP and Start Of Initial Diamond Drill Program at it's Meadowbank Gold Project
July 8, '20 - NR
Western Atlas Resources Inc. has started the drill program at its 100-per-cent-owned Meadowbank gold project located in Nunavut, Canada.
The company has also arranged a non-brokered private placement to raise gross proceeds of $2-million in a mix of flow-through and non-flow through units, with Gran Colombia Gold Corp. purchasing non-flow-through units for proceeds of $1.4-million.
Fabio Capponi, chief executive officer, stated: "We are very pleased with the decision of the CPHO and to be able to advance with the previously announced drill program while committing to the safety and well-being of all our employees and that of the Nunavut community in which the company operates. This initial drill program represents an important milestone for the company as we focus on advancing the exploration of the Meadowbank project. We would like to thank Gran Colombia for its continuous support and for understanding that drilling the current company's flagship gold project is the only way to unlock long-term value for our shareholders."
The drill program
After receiving clearance from the Chief Public Health Officer of Nunavut (CPHO) and having completed a 14-day quarantine, the company team and contractors will be able to travel to Baker Lake to start the drill program at its 100-per-cent-owned Meadowbank gold project located in Nunavut, Canada. Drilling is now expected to start next week.
The diamond drill program will primarily be discovery focused and will target previously identified geological features such as banded iron formation (BIF) and shear zones with interpreted total strike lengths of 15 kilometres and six km, respectively. Drilling logistics are currently being mobilized to site (for more details regarding Western Atlas diamond drill program, please refer to the company's press release issued on Feb. 18, 2020).
At the present time, there are no confirmed cases of COVID-19 in Nunavut or among the Western Atlas team members. The company is working together with its stakeholders to ensure the continued health of local residents in the community in which it operates and will reassess the situation on a continuing basis. Paul Chamois, PGeo, is the qualified person as defined by National Instrument 43-101 and is responsible for reviewing and supervising the preparation of the scientific and technical disclosure in this news release.
The private placement
The proposed private placement will consist of the sale of flow-through units and non-flow-through units at a price of 10 cents. The flow-through units will consist of one flow-through common share and one-half of one non-flow-through common share purchase warrant, with each whole warrant exercisable for one additional Western Atlas share at a price of 15 cents for a period of two years from the closing of the private placement.
The non-flow-through units will consist of one non-flow-through common share and one non-flow-through common share purchase warrant, with each whole warrant exercisable for one additional Western Atlas share at a price of 15 cents for a period of two years from the closing of the private placement.
Western Atlas may accelerate the expiry date of the warrants after one-year-and-a-half has elapsed from the closing in the event the common shares have a closing price on the TSX Venture Exchange (or such other exchange on which the common shares may be traded at such time) of greater than 18 cents per share for a period of 20 consecutive trading days, by giving notice to the holders thereof and, in such case, the warrants will expire on the 30th day after the date on which such notice is given to the holders by Western Atlas, which notice shall be deemed to have been delivered to the holder three business days after the notice has been sent by Western Atlas to the holder by regular mail.
Finders' fees or brokers' commissions may be paid in accordance with TSX-V policies.
Proceeds from the private placement shall be used by Western Atlas for the drilling at Western Atlas's Meadowbank gold project in Nunavut, Canada, seeking restitution of the Increible project, and for general and administrative expenses.
About Western Atlas Resources Inc.
Western Atlas is focused on the acquisition and development of scalable precious metals projects in premier mining jurisdictions. Western Atlas's wholly owned subsidiary, 5530 Nunavut Inc., holds its interests in the Meadowbank project located in Nunavut, Canada.
For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com |
