West Kirkland Mining (WKM-V) Oct 24, '16 announces the execution of subscription agreements for a private placement of common shares of the Company with two of its major shareholders for $1,650,000 at $0.10 per share.
The Company has agreed to issue 16,500,000 shares at a price of $0.10 per share for aggregate gross proceeds of $1,650,000. There are no finder's fees or commissions to be paid on the Private Placement, which was arranged by management. Following the private placement Sun Valley Gold Master Fund, Ltd. and Ruffer LLP, on behalf of its clients, will hold 33.19% and 16.84% respectively of the common shares of the Company.
The Company intends to use the net proceeds of the Private Placement for general working capital, targeted resource expansion drilling, regional exploration, and phase two permitting on its 75% interest in the Hasbrouck Project in Nevada. Clover Nevada LLC, a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman, LP, ("Waterton"), owns the remaining 25% interest in the Hasbrouck Project. Waterton has indicated to the Company that they will fund their 25% share of project expenditures.
Sandy McVey COO of West Kirkland said, "We are very pleased to see continued support from our institutional investors, who recognize the value at Hasbrouck, a 927,000 oz Measured and Indicated Resource gold project in an excellent mining jurisdiction." (see details below)
"The Hasbrouck Project is one of only a handful of permitted, open-pit gold projects. The Hasbrouck Project is very simple construction and the first phase can be started immediately. We see the opportunity for additional ounces within the permitted pit outline that are currently outside of modelled reserves. This financing along with our project partner's contribution will allow us to drill these key targets."
In September, 2016 the Company reported the results of an independent pre-feasibility study of its Hasbrouck Project, based at USD$ 1,275 per oz gold. For further information please refer to the Company's September 1, 2016 news release. The Hasbrouck and Three Hills deposits are all-oxide with low stripping ratios, minimal pre-strip, and no adverse environmental or cultural factors. The resources and their metallurgy have been well-studied and analyzed. Good infrastructure exists nearby consisting of accommodations, grid electricity, paved highways and multiple water sources. The Phase 1 Three Hills Mine is fully permitted and permitting work for the Phase 2 Hasbrouck Mine will continue.
Hasbrouck Project Mineral Reserves Effective Sept 1, 2016
Proven and Probable Reserves total 45.3 million tons containing 762,000 oz gold and 10.6 million oz silver as detailed below:
| Hasbrouck Project Reserves, June 3, 2015, Mine Development Associates (1, 2) | | Three Hills Mine Reserves | Ore
k tons | Gold Grade
(oz Au/ton) | Gold
k oz | Silver Grade
(oz Ag/ton) | Silver
k oz | | 0.005 opt | Proven | - | - | - | - | - | | Au cut-off | Probable | 9,653 | 0.018 | 175 | - | - | | | P&P | 9,653 | 0.018 | 175 | - | - | | Hasbrouck Mine Reserves | | | | | | Variable | Proven | 6,242 | 0.020 | 127 | 0.410 | 2,562 | | Cut-off grade(3) | Probable | 29,374 | 0.016 | 461 | 0.273 | 8,007 | | | P&P | 35,617 | 0.017 | 588 | 0.297 | 10,569 | | Total Hasbrouck Project | | | | | | | Variable | Proven | 6,242 | 0.020 | 127 | 0.410 | 2,562 | | Cut-off grade(3) | Probable | 39,028 | 0.016 | 635 | 0.205 | 8,007 | | | P&P | 45,270 | 0.017 | 762 | 0.233 | 10,569 |
Notes to mineral reserves table:
The estimation and classification of Proven and Probable Mineral Reserves have been prepared by Thomas L. Dyer, P.E., of Mine Development Associates following CIM standards
Mineral Reserves are estimated based on $1,225/oz gold and $17.50/oz silver
Cutoff grades used for Mineral Reserves are: Three Hills 0.005 oz Au/ton, Hasbrouck Upper Siebert 0.008 oz Au/ton, and Hasbrouck Lower Siebert 0.007 oz Au/ton
| | Hasbrouck Deposit Reported Mineral Resources November 3, 2014.
Mineral Resources are reported inclusive of Mineral Reserves
Mine Development Associates (0.006 oz AuEq/ton Cut-off) | | Class | Tons | Gold Grade
oz Au/ton | Gold
oz Au | Silver
Grade
oz Ag/ton | Silver
oz Ag | | Measured | 8,261,000 | 0.017 | 143,000 | 0.357 | 2,949,000 | | Indicated | 45,924,000 | 0.013 | 595,000 | 0.243 | 11,147,000 | | M+I | 54,185,000 | 0.014 | 738,000 | 0.26 | 14,096,000 | | Inferred | 11,772,000 | 0.009 | 104,000 | 0.191 | 2,249,000 | | Notes: oz AuEq/ton = oz Au/ton + (oz Ag/ton x 0.000417) |
| | Three Hills Deposit Reported Mineral Resources August 4, 2014,
Mine Development Associates (0.005oz Au/ton Cut-off) | | Class | Tons | Gold Grade
oz Au/ton | Gold
oz Au | | Indicated | 10,897,000 | 0.017 | 189,000 | | Inferred | 2,568,000 | 0.013 | 32,000 |
Notes to mineral resource tables:
| - | CIM definitions are followed for classification of Mineral Resources. | | - | Mineral Resources are estimated using a price of $1,300 per oz Gold and a price of $22 per oz silver. | | - | Totals may not represent the sum of the parts due to rounding | | - | The Mineral Resources have been prepared by Paul Tietz, C.P.G of Mine Development Associates in conformity with CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines and are reported in accordance with the Canadian Securities Administrators NI43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all Mineral Resources will be converted into Mineral Reserves. |
The shares sold in the above noted Private Placement will be subject to the approval of the TSX Venture Exchange and will bear a four-month resale restriction from the date of closing.
The securities offered pursuant to the Offerings have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About West Kirkland Mining Inc.
West Kirkland owns a 75% interest in the Hasbrouck Gold Project in Tonopah, Nevada. A completed Pre-Feasibility Study and Environmental Assessment with construction level drawings for the Three Hills Mine provides a shovel-ready gold project. West Kirkland also holds a 60% interest in the open pit heap-leach TUG Gold Project in Utah in Joint Venture with Newmont.
Authors and Qualified Persons Statement
The Mineral Resource and Mineral Reserve Statements were prepared in conformance with NI 43-101 by respectively Paul Tietz, C.P.G. and Thomas L. Dyer, P.E., both of Mine Development Associates, Reno, Nevada. Each is a "Qualified Person" under NI 43-101 and has reviewed and approved the information in this news release relevant to Mineral Resources and Mineral Reserves, and verify that the data disclosed in this news release conforms to CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines and to NI 43-101.
Sandy McVey, P.Eng., Chief Operating Officer for West Kirkland, and a non-independent Qualified Person as defined by NI 43-101, has also reviewed the information contained in this news release and has verified the data.
West Kirkland Mining Inc.
Kris Begic
Investor Relations
(604) 685-8311
www.wkmining.com |
