Drilling re-started...PP closed
2012-03-12 17:37 ET - News Release
Mr. Peter Clausi reports
GTA RESOURCES AND MINING INC. ANNOUNCES RE-COMMENCEMENT OF DRILLING ON NORTHSHORE AND CLOSING OF PRIVATE PLACEMENT
GTA Resources and Mining Inc. is providing an operational update on its exploration activities at its Northshore property and on its corporate finance activities.
Northshore property, east of Thunder Bay, Ont.
GTA completed a 1,035-metre drilling program in the fall of 2011 and encountered significant gold mineralization in each of the 12 holes drilled, including 3.21 grams per tonne gold (uncapped) over a core length of 149.5 metres (see GTA's press release of Feb. 14, 2012). For more information, including idealized sections and plans, please visit the company's website.
GTA reports that diamond drilling has already recommenced on the Northshore project. Drilling will be targeted to evaluate further gold mineralization associated with the Audney, Caly and other vein systems which comprise the broader Afric zone. It is anticipated that this phase of drilling will continue through mid- to late May, 2012, with a brief hiatus expected to allow the property to dry out during spring breakup.
This phase of drilling is fully financed.
Close of financing
GTA has closed on the previously announced financing (see GTA's press releases of Feb. 17 and 21, 2012) with a syndicate led by Laurentian Bank Securities Inc. and including Euro Pacific Canada, Union Securities Ltd. and Casimir Capital Ltd., under which the agents offered on a best efforts basis a private placement of GTA securities in common share units and flow-through shares. The gross proceeds from these offerings alone were $5,160,700, including the agents' partial exercise of the overallotment option.
Details of the offerings are as follows:
- GTA has closed on 2,770,556 common share units for gross proceeds of $2,493,500, at a price of 90 cents per unit with each unit consisting of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable into one common share at a price of $1.25 for a period of 18 months from closing of the offerings.
- GTA has closed on 2,222,667 flow-through common shares for gross proceeds of $2,667,200, at a price of $1.20 per flow-through share.
The gross proceeds from these offerings were $5,160,700.
GTA will pay to the agents compensation, including a cash fee of 7 per cent of the gross amount raised in the offerings, and will issue broker warrants in the amount of 7 per cent of the combined number of units and flow-through shares issued in the offerings. Each broker warrant may be exercised into units at a price of 90 cents for a period of 18 months from the date of closing of the financing transaction.
In addition, GTA has raised a further $763,000 by way of private placement, in respect of which GTA will pay to the agents compensation of a cash fee of 3 per cent of the gross amount so raised. Included in this was a subscription from Balmoral Resources Ltd., the title holder on Northshore and GTA's option partner.
The gross proceeds from these offerings and the private placement total $5,923,700. GTA will use the net proceeds to finance its exploration activities on its Northshore and Auden projects and for working capital purposes.
Following these transactions, there are 22,513,255 GTA common shares issued and outstanding.