News Update
Arcus arranges $1.5-million private placement
2012-03-28 08:20 ET - News Release
Mr. Ian Talbot reports
ARCUS EXERCISES DAWSON GOLD OPTION
Arcus Development Group Inc. has provided a corporate update.
Dawson Gold option
Arcus has fully exercised its property option with Atac Resources Ltd. and acquired a 50-per-cent interest in the Dawson Gold project, located in the White Gold district of Yukon. In exercising the option, Arcus has: (i) incurred $3.5-million in exploration expenditures in the project area; (ii) issued one million shares to Atac; and (iii) made total cash payments of $185,000 to Atac. Future exploration will be carried out as a joint venture between Arcus and Atac, with Arcus acting as the joint venture operator.
The Dawson Gold project comprises four separate claim blocks where exploration has been conducted at various levels for the past three years. Significant advancements have been made at the Touleary property, located immediately south of the Kinross Gold Corp. White Gold project and the Dan Man property, located immediately north of Kaminak Gold Corp.'s Coffee property.
Work by Arcus at the Touleary property in 2011 resulted in the first volcanogenic massive sulphide discovery in the White Gold district. A five-hole diamond drill program totalling 935 metres targeted a 300-by-100-metre area within a 1,200-metre-long zone of coincident magnetic and intermittent gold-in-soil geochemical anomalies. VMS mineralization was intersected in all five holes, with the most significant intersection containing 7.18 per cent copper, 116 grams per tonne silver, 3.55 grams per tonne gold and 4.30 per cent zinc over 2.25 metres (see Oct. 4, 2011, news release). A helicopterborne versatile time domain electromagnetic survey was flown subsequent to the discovery and a number of electromagnetic targets are currently being modelled for the 2012 exploration season. The major focus of the 2012 work program will be the drilling of high-priority targets within the untested 900-metre portion of the favourable zone at the Touleary property.
The Dan Man property hosts four separate gold-in-soil geochemical anomalies coincident with multiple structural features interpreted from a detailed airborne magnetic survey and air photo lineament analysis. Two of these zones were partially tested in 2011 as part of a 1,500-metre diamond drill program and both identified structurally hosted gold mineralization (see Dec. 7, 2011, news release).
Details for both properties can be viewed on the Arcus website.
Private placement
Arcus also announces that, subject to regulatory acceptance, it will carry out a non-brokered unit offering. Up to two million units at a price of 75 cents per unit will be sold for gross proceeds of $1.5-million. Each unit will consist of four flow-through shares, one non-flow-through share and one share purchase warrant. Each of the five shares making up a unit will be issued at a price of 15 cents. Each warrant will entitle the holder to purchase one additional Arcus share at a price of 25 cents at any time within one year of the closing of this unit offering.
The flow-through proceeds from the unit offering will be used to finance the 2012 drill program at the Touleary property. The non-flow-through proceeds from the offering and from the exercise of warrants will be used as general working capital. Arcus may pay a finder's fee on the sale of a portion of the unit offering.
Board of directors
The Arcus annual general meeting was held on March 27, 2012. All incumbent directors were re-elected with the exception of Eric B. Tweedie. Mr. Tweedie did not run for re-election. Mr. Tweedie was a founding member of Arcus. The board would like to thank him for his contributions over the past five years and wishes him well as he embarks on his retirement.
The technical information in this news release has been prepared and approved by William A. Wengzynowski, PEng, a director of Arcus and a qualified person for the purposes of National Instrument 43-101.
We seek Safe Harbor.