Xanadu Mines Ltd. [XAM-TSX, ASX; XANAF-OTC] has received firm commitments for a placement to eligible professional and sophisticated investors of approximately 163.8 million fully paid ordinary shares in Xanadu at an issue price of 6.2 cents each to raise approximately $10.2-million (before costs). All dollar amounts are in Australian dollars unless otherwise indicated.
Highlights include firm commitments received for a placement to raise approximately $10.2-million (before costs) that are well supported by both domestic and international institutions. Xanadu is in a strong financial position to deliver a Kharmagtai exploration strategy, targeting resource growth and definition of high-grade bornite-rich zones at depth.
Concurrent with the placement, there are firm commitments from certain institutional investors have been received to facilitate a $1.4-million sell-down with an existing shareholder. Key shareholder SSI Asset Management AG maintains its existing pro rata shareholding.
The proceeds of the placement, together with the company’s existing cash resources, will be applied toward the Phase 2 exploration program at the 100%-owned Kharmagtai copper-gold project located 420 km southeast of Ulaanbaatar, Mongolia. The plan is to target higher-grade, bornite-rich zones at depth and for general working capital purposes.
The issue price of 6.2 cents per new share represents a 15.1% discount to Xanadu’s last close (April 20, 2021) of 7.3 cents per share, a discount of 13.2% to the five-day volume-weighted average price of 7.1 cents per share; and a discount of 14.1% to the 30-day VWAP of 7.2 cents per share.
New shares under the placement will be issued pursuant to the company’s existing placement capacity under Australian Stock Exchange Listing Rule 7.1 and will rank pari passu with the existing fully paid ordinary shares currently on issue.
In conjunction with the placement, Xanadu and the joint lead managers have entered into a binding commitment letter with an existing shareholder to offer all of its shares for sale (sell-down shares) contemporaneously with the offer of shares under the placement, at the offer price, totalling approximately $1.4-million. The joint lead managers have received commitments from certain institutional investors to purchase the sell-down shares.
The placement is scheduled to settle on Friday, April 30, 2021, with allotment and trading to occur on Monday, May 3, 2021. The sell-down is scheduled to settle on or around May 6, 2021.
Argonaut Securities Pty. Ltd. and CLSA Australia Pty. Ltd. acted as joint lead managers to the placement.
Golden Lake Initiates Phase 2 Diamond Drilling on the Jewel Ridge Property, Nevada
Golden Lake Exploration Inc. (CSE: GLM) (“GLM” or the “Company”)(GOLXF-OTC) is pleased to announce that a Phase 2 diamond drill program has started on its keystone Jewel Ridge project, near Eureka, Nevada. The drill contractor is Big Sky Exploration, LLC, based in Bozeman, Montana, and supervision and support are supplied by a team of consulting…
Golden Lake Exploration Inc. (CSE: GLM) (“GLM” or the “Company”)(GOLXF-OTC) is pleased to announce that a Phase 2 diamond drill program has started on its keystone Jewel Ridge project, near Eureka, Nevada. The drill contractor is Big Sky Exploration, LLC, based in Bozeman, Montana, and supervision and support are supplied by a team of consulting and Company geologists and technicians. The proposed drill program of 20,000 feet (6,100 meters) will be augmented with a second rig later in the summer. The initial drill holes will be directed at the Carbonate Replacement Deposit (“CRD”) bonanza mineralization intersected in hole JR-20-12DD which returned from 15.21 meters to 18.44 meters returned 3.23 meters averaging 57.16 g/t Au, 452.0 g/t Ag, 7.23 % Pb, and 11.99% Zn (see PRD dated Feb 23, 2021).
Subsequent targets will include the Hamburg Zone where drilling last year returned a wide zone of mineralization in holes JR-20-02 from 123.44 to 181.36 meters, over 57.91 meter in width (drill width) averaging 0.44 g/t Au and 3.0 g/t Ag, with a higher-grade portion from 152.40 to 169.16 meters, over 16.76 meters averaging 0.94 g/t Au and 6.6 g/t Ag.
Also, at the Hamburg Zone a CRD intercept drilled in a 2012 program has never been followed up by diamond drilling. Reverse circulation (“RC”) JR-12-06, from 15.2 to 18.2 meters, over 3.0 meters returned 1.1 g/t Au, 601.0 g/t Ag, 8.8 % Pb, and 4.7 % Zn.
“We are excited to have the drills turning again on our Jewel Ridge property and are looking forward to testing the bonanza mineralization we intersected last fall.” stated CEO Mike England.
Golden Lake Exploration’s disclosure of a technical or scientific nature in this news release has been reviewed and approved by Garry Clark, P.Geo., who serves as a qualified person under the definition of National Instrument 43-101.
About the Jewel Ridge Property
The Jewel Ridge property is located on the south end of Nevada’s prolific Battle Mountain – Eureka trend, along strike and contiguous to Barrick Gold’s Archimedes/Ruby Hill gold mine to the north and Timberline Resources’ advanced-stage Lookout Mountain project to the south.
About Golden Lake Exploration Inc.
Golden Lake Exploration is a junior public mining exploration company engaged in the business of mineral exploration and the acquisition of mineral property assets. Its objective is to acquire, explore and develop economic precious and base metal properties of merit and to aggressively advance its exploration program on the Jewel Ridge property.
ON BEHALF OF THE BOARD
Mike England, CEO & DIRECTOR
FOR FURTHER INFORMATION PLEASE CONTACT: Telephone: 1-604-683-3995
Neither the Canadian Stock Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward -looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at WWW.SEDAR.COM).
First Energy drills 2 metres of 1.35% Li2O at Augustus Project, Quebec
First Energy Metals Ltd. [FE-CSE; ASKDF-OTC; A2JC89-FSE] reported results of a drill hole at its Augustus lithium property in Quebec. Drill hole LC21-003 intersected a six-metre-wide zone with 0.62% lithium oxide (Li2O) at 45 metres of depth, including a two-metre-wide intersection with 1.35% Li2O at 48 metres depth. A second two-metre-wide pegmatite intersection assayed 0.63…
First Energy Metals Ltd. [FE-CSE; ASKDF-OTC; A2JC89-FSE] reported results of a drill hole at its Augustus lithium property in Quebec. Drill hole LC21-003 intersected a six-metre-wide zone with 0.62% lithium oxide (Li2O) at 45 metres of depth, including a two-metre-wide intersection with 1.35% Li2O at 48 metres depth. A second two-metre-wide pegmatite intersection assayed 0.63 per cent Li2O at 73 metres depth.
Drill hole LC21-03 was drilled at location: 284956E, 5368263N (NAD (North American datum) 1983 UTM (Universal Transverse Mercator) zone 18N), azimuth 53.5 degrees, dip 49.4 degrees with a total drilled depth of 147 metres. All intersections reported are based on drilled width and have not been converted to true width.
Gurminder Sangha, CEO, stated: “We are very pleased that drill results have started to arrive. After fieldwork mapping and sampling, this is the second step to verify historical exploration work. The company is looking forward to receiving more drilling and channel sampling results to keep investors aware of the progress being made on the property.”
The drill program is based on historical exploration data and the company’s surface trenching and sampling program currently under way. Several historical drill hole collars were also located on the property, which help in location and orientation of drill holes for the current drill program.
A core shack has been built near the property for drill core logging, sample preparation and storage. To date, a total of 13 drill holes with a cumulative core drilling of 1,770 m have been completed on the property.
The company owns a 100% interest in the Augustus lithium property in Landrienne and Lacorne townships. The property consists of 271 mining claims covering a total area of 14,155 hectares located approximately 40 km northwest of Val d’Or8. The claims are spread in several claim blocks optioned in 2021 from different vendors. The company has prepared a well-thought-out work plan on the property, which includes diamond drilling, metallurgical testwork to produce battery-grade lithium carbonate and resource estimation.
To date, First Energy has compiled historical drill hole data on the property for 74 historical dill holes with cumulative drilling of 12,123.14 metres, out of which 6,024 metres of drilling were completed in the 1950s. Several drill hole results indicated intersections over 1% lithium oxide.
Granite Creek targets big Yukon copper system
Granite Creek Copper Ltd. [GCX-TSXV; GCXXF-OTC; A2PFE0-FSE] said Thursday May 6 that it is poised to launch a 10,000-metre drill program at its Carmacks copper-gold-silver project in central Yukon. It said the program will focus on upgrading inferred resources to indicated, as well as step out drilling aimed at delineating new resources where the deposit remains…
It said the program will focus on upgrading inferred resources to indicated, as well as step out drilling aimed at delineating new resources where the deposit remains open to expansion.
Granite Crek shares advanced on the news, rising 2.5% or $0.005 to 20.5 cents. The shares are currently trading in a 52-week range of 25 cents and $0.045.
Carmacks is part of a large land package that Granite Creek picked up last year through the acquisition of share it didn’t already own in Copper North Mining Corp. The package, now controlled by Granite Creek, includes the advanced-stage Carmacks Copper Project and the highly perspective Stu Copper-Gold Project. The combined land package covers approximately 176 square kilometres within the Minto Copper District creating a copper-focused exploration and development company.
Granite Creek has said the acquisition of Copper North resulted in the combination of the preliminary economic assessment (PEA) stage Carmacks deposit, with 23.76 million tonnes (oxide and sulfide combined) grading 0.85% copper, 0.31 g/t gold, containing 446 million pounds of copper, 237,000 ounces of gold and 2.4 million ounces of silver (in the measured and indicated category, with the blue-sky potential of the adjacent Stu Project.
On Thursday, Granite Creek said Carmacks Zone 1 hosts a portion of the overall 23.76 million tonnes of the current mineral resource estimate and remains open at depth and along strike. It also said that while the oxide portion of Zone 1 has been well defined and is categorized in the measured and indicated category, only approximately half of the underlying sulfide resource is in the measured and indicated category, while the remainder is classified as inferred.
Starting at only 200 metres from surface, the sulfide in Zone 1 has the potential to add additional tonnage to the contained resources and could become part of an updated economic study.
Results from the 2020 and 2021 drill programs are expected to be included in an updated NI 43-101 compliant mineral resource estimate, the company said.
Granite Creek CEO Tim Johnson he sees the potential for a multi-billion-pound-scale copper system.
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