Tocvan Ventures Corp C.TOC

$3M private placement and much more.

[lifegoeson]

The details of the next phase have finally been released by Tocvan. I am very pleased. There is a lot to unpack in this press release and a lot more to be learned in the near future.

 

I have been singing the "Delay Blues" for the last few months, but clearly Tocvan has had a number of details to work out, much more than simply getting the drills turning. The overall package is intended to support the company through the next drilling phase, resource estimation, and culmination in a "Proof-of-Concept" Pilot mine leading to either full production or being acquired.

 

Take your pick as to the outcome, either will be well worth the wait.

 

"Tocvan Ventures Corp. has arranged a non-brokered private placement with a lead order from an institutional investor". I am pleased to see that Sorbie is making a $1.8-million private placement in Tocvan. Not many companies have such a strong institutional investor, suggestive of their belief in not only the progress being made but in the significant potential of Gran Pilar.

 

I noticed that Sorbie is accepting 262,500 common shares and related warrants on the terms noted above in lieu of receiving a finance fee of $126,000. They clearly understand that cash is king and will be put to good use by Tocvan.

 

This is structured to provide cash flow for the next 2 years, reducing the risk of funding going forward for shareholders. The company will receive $75,000 per month from the closing date of the institutional offering over the next 24 months. The offering structure is an extension of the private placement structure previously disclosed by the company in its news releases dated June 30, 2022, and March 29, 2023 and is expected to close on or before Dec. 4, 2024.

 

In addition, the company will complete a concurrent private placement for up to $1.2-million to other eligible investors for an aggregate issuance of 6.25 million units of the company at a price of 48 cents per unit for aggregate gross proceeds of up to $3-million.

 

Each unit will consist of one common share of the company and one share purchase warrant, with each unit warrant entitling the holder to purchase one additional common share at a price of 75 cents per unit warrant share for a period of 36 months from the date of issue.

 

I have provided information at the end of this post if anyone wants to participate in the financing. A great place to park $15,000 and get a free warrant kicker. For full disclosure, I am participating again. If you haven't participated in a private placement before, it is as simple as downloading documents, signing, and sending a draft through your bank (the draft is free).

Drilling to start next week.

 

"A diamond core drill rig is set to mobilize on or about Dec. 4, 2024. Core drilling of up to 1,250 metres is budgeted and prepaid through an existing credit with partial joint venture partner Colibri. Tocvan and Colibri share a 51/49-per-cent interest in the 105-hectare area that contains Pilar's Main zone. Core drilling will be focused on the JV area across the Main zone to build out a robust geological model needed for resource estimation. Drilling is expected to continue up until the holiday season with wrap-up and demobilization planned for on or about Dec. 22, 2024."

What is very interesting about the diamond core drilling is that it will be undertaken by Colibri and concentrated across the Main Zone only. This is the area owned 51% by Tocvan and 49% by Colibri. The drilling appears to be prepaid through an existing credit, suggesting that at least a portion of their Joint Venture contribution is being paid by drilling.

I haven't seen the terms and conditions of the JV Agreement between Colibri and Tocvan as it has not been filed on SEDAR. I suspect it is a work in progress but it appears many of the details have been worked out given the drilling agreement noted in the press release. It will be interesting to learn exactly what this means in terms of their overall ownership.

 

Now for the good part, Tocvan will be conducting RC drilling in the expansion area of Gran Pilar which is 100% owned by Tocvan. This area has significant "Blue Sky" potential and is classically what I believe to be a company maker alone.

Keeping in mind that Main Pilar is only 105 Hectares and is going to be a producing mine on its own, whereas Gran Pilar is 22 times larger than the Main Zone of Pilar at over 2,100 hectares and 100% owned by Tocvan.

 

Given the significantly larger size of Gran Pilar and preliminary soil results, one can certainly understand the excitement and extensive due diligence conducted by a "Major" who has been exclusively exploring Gran Pilar.

"Additionally, RC drilling is expected to begin in early December to test the northern and northeast extent of known mineralization. Several areas extending into the 100-per-cent-controlled expansion area (over 2,100 hectares) will begin to be tested for the first time, placing drill holes within the expansion area and pushing the known boundary of mineralization farther out than ever before. An initial phase of up to 2,000 metres of RC drilling is anticipated with a pause over the holidays before returning for the new year."

 

It is important to understand that some of the areas in the Gran Pilar that will be drilled are extensions of the Main Zone. This could provide significant resources to feed the proposed future mine, 100% of the revenue would be directed toward Tocvan from these areas as they are not included in the Joint Venture ownership.

 

And now for the best part, the company is reviewing several term sheets to evaluate non-dilutive methods to fully finance the test mine facility. This would mean the equivalent of another $1.7M in expansion capital might be acquired soon without dilution. This will lay the infrastructure for both the Pilot facility and full production in the future. If this is separate from the JV with Colibri, it would also be 100% owned by Tocvan.

 

"The company estimates the total cost of the Pilot facility including the extraction and processing of 50,000 tonnes to be approximately $1.7-million (U.S.). The company expects to recover between 800 and 1,400 ounces of gold, depending on grade and recovery encountered with an additional 5,000 ounces of recovered silver. The company has used conservative estimates based on recovery rates encountered during the independently reviewed bulk sample completed in 2023 that yielded a head grade of 1.9 grams per tonne gold with 62-per-cent recovery."

If you are interested in participating in the current private placement for Tocvan, here is an investment document circulating from Tocvan which outlines the plan going forward, interested shareholders are directed to the contacts below of 

We have a placement open. $0.48 Unit; Full 3 year warrant at $0.75.

 

Use of Proceeds to Drive Project Advancement and News Flow:

• 3,500m + of RC and Core Drilling

• Ground Stripping and Preparation for Pilot Test Mine (50,000 tonnes)

• Including detailed channel sampling

• Trenching and Recon Drilling across new Expansion Area Targets

• Includes testing recent Surface Discoveries across 22km² area

Catalysts:

• Follow up on results from last drill campaign that included, 56.4m of 1.0 g/t Au and 42.7m of 1.0 g/t Au, our best results yet outside of the Main Zone

• Pending Surface Rock Samples from Expansion Area, following up on successful soil grid that returned up to 21 g/t Au, >2,000 g/t Ag, 0.6% Cu, 12% Pb and 2% Zn identifying a historic mine working nearby

• Drill Results for Q12025

• Surface Channel Results leading up to Test Mine Stripping

• Infrastructure Development for Test Mine

• Update on Maiden Resource Estimation

Tocvan is looking at several options available to finance the test mine which we estimate at current gold prices will generate an additional US$1.5M of capital to put towards further project development. The test mine will take approximately 6 months to complete, with start up as early as Q2025.

 

In 2025, we look to separate ourselves from a traditional explorer and make significant strides towards development, showcased by the test mine. 

Best Regards,
Brodie Sutherland

For more information, please contact: 

TOCVAN VENTURES CORP.
Brodie A. Sutherland, CEO
1150, 707 – 7 Ave SW
Calgary, Alberta T2P 3H6
[phone]
[e-mail]
 
THE HOWARD GROUP
Jeff Walker
VP Howard Group Inc.
[phone]
[e-mail]

Use this link to access the investment documts or contact the Howard Group directly.

https://tocvan.us21.list-manage.com/track/click?u=9700be88b6f71c9821f2ff931&id=49ffa32e36&e=adc887c5d9