C.NGLD
ORIGINAL: New Placer Dome Gold Corp. Announces Non-Brokered Private Placement and Provides Corporate Update
2021-09-14 08:03 ET - News Release
Not for distribution to U.S. news wire services or dissemination in the United States.
VANCOUVER, BC / ACCESSWIRE / September 14, 2021 / New Placer Dome Gold Corp. ("New Placer Dome" or the "Company") (TSXV:NGLD)(OTCQB:NPDCF)(FSE: BM5) is pleased to announce a non-brokered private placement and provide a corporate update in regards to its flagship Kinsley Mountain Gold Project (the " Kinsley Mountain Project "), located in southeast Elko County, Nevada.
Private Placement
New Placer Dome intends to complete a non-brokered private placement (the "Private Placement") for aggregate gross proceeds of a minimum of $4,000,000 and a maximum of $5,000,000. The Private Placement will consist of units (each, a "Unit") at a price of $0.08 per Unit. Each Unit will be comprised of one common share and one transferable common share purchase warrant (each, a "Warrant"). Each Warrant is exercisable to purchase one common share of the Company at a price of $0.12 per share for a period of three years from the date of issue (the "Expiry Date"), provided that, if after four months from the date of issue, the closing price of the common shares of the Company on any stock exchange or quotation system on which the common shares are then listed or quoted is equal to or greater than $0.20 for a period of ten (10) consecutive trading days at any time prior to the Expiry Time, the Company will have the right to accelerate the Expiry Time of the Warrants by giving notice to the holders of the Warrants by news release or other form of notice permitted by the certificate representing the Warrants that the Warrants will expire at 4:30 p.m. (Vancouver time) on a date that is not less than ten (10) days from the date notice is given.
In connection with the Private Placement, the company may pay finders' fees in cash or securities, or a combination of both, as permitted by the policies of the TSX Venture Exchange (the "Exchange"). All securities issued pursuant to the Private Placement will be subject to a four-month hold period. The Private Placement is subject to approval by the Exchange.
Corporate Update and Amendment to the Kinsley Option Agreement
The Company also announces that it is in discussions with Liberty Gold Corp. (LGD) ("LibertyGold") to amend certain payment terms under the purchase option agreement (the "Kinsley Option Agreement") dated November 29, 2019, as amended, between the Company and Liberty Gold, subject to the Company completing the Private Placement. The amendments would provide combined payments of US$1,250,000 in cash and US$1,250,000 in common shares of the Company on June 2, 2021, and June 2, 2022, respectively, instead of US$2,500,000 in cash on June 2, 2021 and US$2,500,000 in common shares of the Company on June 2, 2022, respectively. The first of these common share payments would be subject to a voluntary one year hold period from the date of issuance and upon their issuance to Liberty Gold and the completion of the Private Placement, Liberty Gold will hold in excess of 10% of the issued and outstanding common shares of the Company and become its largest shareholder. Liberty Gold will have the right to terminate the Kinsley Option Agreement if it provides written notice of default to the Company of failure to make the required payments under the Kinsley Option Agreement and the Company fails to make the necessary payment within 45 days from the date of receipt of such notice. If the Company and Liberty Gold proceed with the foregoing amendments to the Kinsley Option Agreement, the Company may be required to obtain a waiver of the right of first refusal from Nevada Sunrise Gold Corporation. For further information, refer to the Company's filings on www.SEDAR.com including the annual information form for the year ended June 30, 2020, filed on May 26, 2021. Amendments to the Kinsley Option Agreement are subject to Exchange approval.
Kinsley Geophysics Program
The Company has engaged Las Vegas Nevada-based KLM Geoscience to begin an expanded, property-wide IP/resistivity geophysical survey program expected to commence on September 18, 2021 (Figure 1).
Geophysical surveys completed during 2020 at the WFZ and Shale Saddle target areas correlate with drill confirmed high gold mineralization. Expanded geophysical surveys for 2021 will target the Secret Spot target and under-explored Kinsley North frontier area. At Kinsley North soil geochemical surveys reveal broad arsenic in soil anomalies coincident with structures and the prospective Pogonip-Notch Peak contact (the same host horizon as Long Canyon1) and Dunderberg shale rocks at depth cut by late northwest trending structures that are important gold mineralization hosts within the Kinsley resource area.
Subject to the Company completing the Private Placement, exploration drilling will commence following completion of geophysical surveys to build on new discoveries and expansion of resources.
Highlights of the 2020 Kinsley Drilling include1:
Western Flank - West side resource expansion drilling yields
- 10.22 g/t gold over 6.1 metres within a broader zone grading
- 2.63 g/t Au (sulphide) over 38.10 metres in KMR20-017
Western Flank - Central yields second highest-grade Dunderberg shale intercept
- 15.1 g/t Au (sulphide) over 7.6 metres, including 24.1 g/t Au (sulphide) over 4.6 metres lower zone,
- 9.08 g/t Au (sulphide) over 6.1 metres upper zone in KMR20-026
Main Pit North Oxide Target yields high-grade intercepts 75 m outside current pit shell
- 9.83 g/t gold over 7.6 metres high grade shallow oxide
Secret Spot Target surface oxide New Discovery multiple intercepts including
- 1.77 g/t gold over 25.3 metres in new surface oxide discovery in KMD20-007B
- 3.81 g/t gold over 11.6 metres; including 11.3 g/t gold over 2.9 metres in KMD20-006
About New Placer Dome Gold Corp.
New Placer Dome Gold Corp. is a gold exploration company focused on acquiring and advancing gold projects in Nevada. New Placer Dome's flagship Kinsley Mountain Gold Project located 90 km south of the Long Canyon Mine (currently in production under the Newmont/Barrick Joint Venture, Nevada Gold Mines), hosts Carlin-style gold mineralization, previous run of mine heap leach production, and NI 43-101 indicated resources containing 418,000 ounces of gold grading 2.63 g/t Au (4.95 million tonnes) and inferred resources containing 117,000 ounces of gold averaging 1.51 g/t Au (2.44 million tonnes)2. The Bolo Project, located 90 km northeast of Tonopah, Nevada, is another core asset, similarly hosting Carlin-style gold mineralization. New Placer Dome also owns 100% of the Troy Canyon Project, located 120 km south of Ely, Nevada. New Placer Dome is run by a strong management and technical team consisting of capital markets and mining professionals with the goal of maximizing value for shareholders through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC), Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, a Director of New Placer Dome and a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects . Mr. Raffle has verified the data disclosed which includes a review of the sampling, analytical and test data underlying the information and opinions contained herein.
Figure 2. Kinsley Mountain 2021 Exploration Plan
On behalf of the Board of Directors,
/s/ "Max Sali"
Max Sali, Chief Executive Officer
Contact Information:
Max Sali, Chief Executive Officer & Director
Tel: 604 620 8406
Email: msali@newplacerdome.com
Karl Mansour, Paradox IR
Tel: 514 341 0408