News on ASQH: Wednesday February 12 1:53 PM EDT
Asquith Resources Inc.- $4.8 million financing closed - diamond drilling underway
TORONTO--(BUSINESS WIRE)--Feb. 12, 1997--ASQH (CANADIAN DEALING NETWORK:CDN.) Asquith Resources Inc. (ASQH-CDN) ("Asquith") said today that it has closed a $4.8 million Special Warrants offering as previously announced on January 24, 1997. Midland Walwyn Capital Inc. ("Midland") acted as underwriter for Asquith to privately place 2.4 million Special Warrants at $2.00 per Special Warrant. Each Special Warrant will be convertible, for no additional consideration, into one common share.
Asquith has agreed to file a prospectus qualifying the distribution of the common shares issuable upon the exercise of the Special Warrants as soon as possible. $2.4 million of the gross proceeds of the offering have been advanced to Asquith and the balance of the gross proceeds, net of commissions and expenses, will be held in escrow pending issuance of receipts for the final prospectus. If receipts for the final prospectus are not obtained by June 11, 1997, each purchaser will have the option to have one-half of their Special Warrants repurchased by Asquith. Each Special Warrant not repurchased by Asquith will be convertible into 1.1 common shares.
Net proceeds from the financing will be primarily used to fund ongoing exploration of Asquith's Roandji gold property in the Central African Republic. A diamond drilling program commenced (February 3rd) on the Agoudou Manga gold prospect, one of five gold prospects that have been identified by Asquith on the 2,000 square kilometre Roandji gold property.
Approximately 3,000 metres of HQ-sized core drilling is planned for this initial phase of diamond drilling at the Agoudou Manga prospect. The first hole (AG-1) was completed at a down-hole depth of 202 metres and was drilled to test the west gold zone at Agoudou Manga, where very encouraging assay results have been returned from surface trenching (see map attached). Trench no.1, a 37-metre long trench which was excavated just 50 metres south of the position of drill hole AG-1, returned an average grade of 1.67 grams of gold per tonne over the entire 37-metre length of the trench. Included within this trench is a channel sample interval that averages 8.47 grams of gold per tonne over a sample width of 13.05 metres.
The west gold zone has been traced by Company geologists over a strike-length of 1.2 kilometres, and is marked by a 600-metre wide gold and soil anomaly which has produced assay values of up to 6.5 grams of gold per tonne. The current diamond drilling program will focus on tracing the gold mineralization of the west zone along strike, at depths of up to 125 metres.
There is a map available by contacting the company at the number above.
CONTACT: Asquith Resources Inc.
Mr. Michael D. Coulter, 416/368-0993
or
Asquith Resources Inc.
Mr. Kenneth W. Johnson, 416/368-0993
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