TSXV:KAM - Post Discussion
Post by
mary-ally-smith on May 05, 2016 9:15am
Kaminak Announces 2016 Coffee Gold Project Budget of $29.0 M
Kaminak Announces 2016 Coffee Gold Project Budget of $29.0 Million and Cash
Proceeds of $14.4 Million from Warrants Exercise
May 5, 2016 Vancouver, B.C. – Kaminak Gold Corporation (KAM: TSX-V) (“Kaminak” or the “Company”) today announced that the Board of Directors has approved a $29.0 million, 2016 budget in support of its’ development-track Coffee Gold Project located 130 km south of Dawson City in Yukon Territory Canada. The 2016 program will consist of environmental baseline, permitting and exploration activities designed to de-risk and advance the project towards production while continuing to unlock future mining opportunities at Coffee.
Eira Thomas, CEO commented: “Kaminak has embarked upon another busy year at Coffee, and with the recent, accelerated exercise of outstanding warrants, we remain well financed to achieve all of our objectives for 2016 and beyond. Initiating the permitting process for our first gold mining opportunity remains a top priority, but exploration to realize some of the significant resource expansion potential that exists proximal to the main resource area and regionally within the under-explored Coffee gold district, is also an important theme. We are excited to be getting back to our exploration roots and focused on making new gold discoveries in 2016.”
Additional cash proceeds of $14.4 million from the accelerated expiry of warrants provides sufficient funding for all of 2016’s activities including corporate general and administrative expenses (G&A). We expect to end fiscal 2016 with a cash balance of approximately $9.0 million.
Approximately 48% of the 2016 budget ($13.9M) has been allocated to mine permitting, while a further 21% ($6.2M) will be spent on pre-development/advanced engineering. Approval has also been granted by the Board of Directors for up to a $5 million exploration program at Coffee with phase I expenditures estimated at $2.6 M. The remaining expenditures in the budget have been allocated to Corporate G&A, marketing and the opening of offices in both Whitehorse and Dawson City.
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