TORONTO, ONTARIO--(Marketwired - Sept. 25, 2014) - Austin Resources Ltd. ("Austin" or the "Company") (TSX VENTURE:AUT) announces that has received the approval of its shareholders and the approval of the TSX Venture Exchange for its previously announced property acquisition and private placement (see press release dated June 30, 2014).
In connection with the property acquisition, the Company has acquired a 100% interest (subject to a 2% Net Smelter Royalty) in 35 contiguous unpatented mineral claims, totalling 455 units and covering 7,264 hectares of land near Red Lake, Ontario (the "Treasure Property"). The Treasure Property is an early stage gold exploration property and was acquired by Austin in exchange for the issuance of 6,000,000 common shares (post-consolidated) of Austin (the "Acquisition"). The common shares issued in connection with the Acquisition will be subject to resale restrictions for a period of four months and one day from September 25, 2014.
In connection with the private placement, Austin is pleased to announce the closing of a non-brokered private placement offering of $1,400,000 of gross proceeds based on the issuance of 28,000,000 common shares (post consolidated) at a price of $0.05 per common share (the "Private Placement"). The common shares issued in connection with the Private Placement will be subject to a resale restriction for a period of four months plus one day from September 25, 2014. The net proceeds will be used to fund the Company's exploration and development activities, to repay the outstanding debt in full and for general corporate purposes.
Following completion of the Acquisition and the Private Placement, Guilin International Company Limited ("Guilin") will own 16,000,000 common shares of the Company representing 36.2% of the issued and outstanding common shares of the Company on an undiluted basis. Additionally, T and L Elite Capital Group Limited ("T and L") will own 5,900,000 common shares of the Company representing 13.3% of the issued and outstanding common shares of the Company on an undiluted basis. Each of Guilin and T and L are holding these common shares for investment purposes and will evaluate the investment and may increase or decrease the investment as circumstances warrant.
THE COMMON SHARES WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.
About Austin Resources Ltd. (formerly Azul Ventures Inc.)
Austin Resources Ltd. is a mineral exploration company with the rights, through its wholly owned subsidiary Minera Azul Ventures Limitada, to acquire a 100% interest in two prospective copper-iron properties in La Higuera, Chile: the La Higuera Property and the Caballo Blanco Property. The properties are located approximately 600 km north of Santiago in a prolific I.O.C.G. belt surrounded by excellent infrastructure in a mining friendly jurisdiction.
The La Higuera Property was assembled as a result of the first-time consolidation of mining rights and covers a historic copper mining district with mining activity dating back to at least the late 18th century; however, there had been no known modern exploration conducted on the property. The mining concessions total 1,076 hectares and include an option agreement with a concession holder (down from a total of 1,230 hectares which included four option agreements with concession holders, as three option agreements have been dropped). Since the consolidation of the mining rights in June 2011, Austin completed a rock sampling program, completed geophysical work which generated intense magnetic and chargeability anomalies coincident with existing copper workings, finalized a 4,088 m drill program and an underground mapping and sampling program.
The Caballo Blanco Property, which begins approximately 1 km southwest of the La Higuera Property, has historical copper workings and a total of 15 broad spaced reconnaissance holes were completed at Caballo Blanco by previous option holders. The Company has received and logged the core from these historical drill holes.
Cautionary Statements
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; market conditions; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the "Risk Factors" section of the Company's Filing Statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Austin undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.