sorry
Press release from Marketwire Homestake Announces Loan Agreement and New Targets at Kinskuch Monday, April 14, 2014 Homestake Announces Loan Agreement and New Targets at Kinskuch 09:00 EDT Monday, April 14, 2014 VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 14, 2014) - Homestake Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6IH) ("Homestake" or the "Company") announces that it has entered into a loan agreement pursuant to which an arm's length individual (the "Lender") will loan Homestake $100,000 (the "Loan"). The Loan is repayable in 12 months and interest is payable quarterly at a rate of 8% per annum. At the election of Homestake, interest may be paid by the issuance of common shares in accordance with the Policies of the TSX Venture Exchange. By way of security, Homestake will deliver to the Lender a general security agreement and will also assign to the Lender a loan agreement between Homestake, as lender, and a third party borrower. As additional consideration of the Loan being granted, Homestake has agreed to grant the Lender a bonus by way of issuing 2,000,000 share purchase warrants (the "Bonus Warrants"). Each Bonus Warrant is exercisable to purchase a common share in the capital of Homestake for a price of $0.05 for a period of 12 months. The Bonus Warrants will be subject to a hold period of four months and a day from issuance. The Loan and the issuance of the Bonus Warrants are subject to the acceptance of the TSX Venture Exchange. Proceeds from the loan will be used to pay acquisition expenses for the 625 square kilometre Kinskuch property located in northwestern British Columbia, where two additional exploration targets have been identified as high-priority. Kinskuch Property Homestake has subdivided the large Kinskuch property into four general prospect areas; three of the prospects have somewhat different types of exploration targets, and a fourth area has not yet been evaluated by the Company. Homestake is seeking funding partners to drill test targets that have already been identified at three of the prospect areas, while developing additional drill targets on this well-mineralized and extensive land package. Two specific targets have been identified recently as high priority from existing data; the Kitgold target as part of the Esperanza property package and the Goldstream target as part of the Illiance property package. •The initial drill target at the Esperanza Package is an "Eskay Creek"-type high grade Ag-Au system at the historic Esperanza mine. This target is an area of historic workings from which high-grade gold was mined in the early 20th century. The mine is located only 1.5 kilometres from tide water and at an elevation of only 500 metres, making logistics excellent should a deposit be developed. A second high-priority target is indicated at the Kitgold target, where gold-bearing quartz veins are found within quartz stockworks with assays ranging from trace to 8.6g/t Au, 170g/t Ag, 2.6% Pb and 12% Zn. The veins are traceable for over 2000 metres along strike and are hosted in a comparable structural and stratigraphic setting to the nearby Homestake Ridge deposits located 10km to the north. •The drill target at the FH Package is analogous to the Early Jurassic "Red Chris"/"North Rok"-type porphyry Cu-Au system, and is based on a 1000m x 500m Cu-Au in-soil anomaly which has seen only minimal historic drilling. •The initial drill target at the Illiance Package is high grade Ag-Pb-Zn system exposed in historic trenching and intersected in Homestake's 2011 drilling program at the Illiance River target. The Company has completed only four drill holes in a +4 kilometre-long mineralized trend, with three holes returning high-grade Ag-Pb-Zn mineralization. A second high-priority target is indicated at the Goldstream target, where surface sampling has identified several targets in soil and stream sediment samples overlapping "Eskay-equivalent" stratigraphy in the Upper Hazelton Group. A +1500m-long airborne EM geophysical anomaly at Goldstream is coincident with multi-element soil anomalies with values to 234ppb Au, 3.4ppm Ag and 2,050ppm Zn. To view Figure 1, please visit the following link: https://media3.marketwire.com/docs/hsr0414fig1.pdf. President Joe Kizis commented, "Homestake is leveraging our target-rich land position in this highly prospective mineral district by seeking funding partners, as we have done at our Homestake Ridge property by bringing in Agnico Eagle. We have subdivided the much larger Kinskuch property into four prospect areas because three of these areas have targets that we expect will be of interest to different types of mining companies. We are signing confidentiality agreements and showing data to various companies in anticipation of field examinations taking place beginning in June. With a $3million spending commitment at our Homestake Ridge property and an anticipated 40 to 50 -hole drilling program recently announced for 2014 by neighbor Dolly Varden Silver (news release April 08, 2014), we expect exciting news from the district."