Homestake Resource Corporation. (TSX VENTURE:HSR)(FRANKFURT:B6IH) reported today that it plans an equity financing for its 2012 Kinskuch exploration program. The proposed offering shall be on a non-brokered basis, consisting of flow-through Common Units and non-flow-through Units. The Company may pay finders' fees in cash and issue Finder's Warrants each having the same terms and conditions as the Warrants. The private placements and payment of finders' fees are subject to regulatory approval. The company has also reported that the private placement previously announced on September 21, 2012 will not proceed.
Flow-through Common Units: Issuance of a maximum of 4,750,000 flow-through Units to Canadian resident investors, each flow-through Unit priced at $0.20 to raise gross proceeds of a maximum of $950,000. Each Unit is comprised of one flow-through share and one half share purchase warrant, each whole warrant entitling the purchase of one common share at a price of $0.25 per share for 24 months. The proceeds will be utilized for Canadian exploration expenses, within the meaning of the Income Tax Act (Canada), related to the exploration during 2012-2013 of the company's Kinskuch project in British Columbia, Canada with expense renunciations on December 31, 2012.
Non Flow-through Units: Issuance of a maximum of 4,700,000 Units priced at $0.15 per Unit to raise gross proceeds of a maximum of $705,000. Each Unit is comprised of one common share and one share purchase warrant, each whole warrant entitling the purchase of one common share at a price of $0.20 per share for 24 months. The proceeds from the non-flow through private placement will be utilized for working capital.
The Kinskuch project is a large 623 sq. km property which is located directly east of Homestake Ridge and extends south approximately 30km to tidewater at Alice Arm/Kitsault in Northwestern British Columbia.
Rock and soil geochemical results from the 2012 exploration program, combined with earlier EM geophysical data continues to demonstrate extensive mineralization throughout the property. Specifically, surface soil and rock sampling on the Illiance River trend has extended Ag-Pb-Zn mineralization south of Homestake's 2011 drilling by an additional 750 metres and expanded the overall trend to more than 4.5 kilometres of strike length. The Illiance River trend is the first of several drill-ready target areas identified on the property located, adjacent to the Company's Homestake Ridge project and will be the focus of the 2013 exploration program.
Homestake owns a 100 percent interest in the Homestake Ridge project, which is located in a prolific mineral belt in northwestern British Columbia. The project is being advanced as a potential high-grade underground mining operation with a current NI43-101 compliant Indicated Resource, at a 3.0 g/t AuEq cut-off, of 191,000 oz gold and 1,350,000 oz silver (215,500 oz AuEq) plus an Inferred Resource of 530,000 oz gold and 13,470,000 oz silver (775,900 oz AuEq)(1). Two deposits have been delineated to date, with a third, South Reef, discovered late in 2011. Multiple exploration targets remain to be tested on the large 2585 hectare property. Homestake also holds an option to acquire the 623-square-kilometre Kinskuch project located adjacent to, and to the southeast of Homestake's Homestake Ridge project. Homestake holds a 9.76 percent interest in Bravada Gold Corporation (TSX VENTURE:BVA), which is exploring 21 projects in Nevada.
ON BEHALF OF THE BOARD
Joseph A. Kizis Jr., President
1. The current estimate was prepared by Roscoe Postle Associates Inc.
(RPA). Mineral Resources on the Main Homestake deposit were estimated
previously in 2010 using a block model constrained by 3D wireframes of
the mineralized zones. Mineral Resources on the Homestake Silver deposit
were estimated in 2011 using a block model constrained by pierce points
projected to 2D surfaces. The Main Homestake block model comprised an
array of blocks measuring 5 m x 5 m x 5 m, with grades for Au, Ag, and
Cu interpolated using ID3 weighting. The Homestake Silver block model
comprised an array of blocks measuring 10 m x 10 m. At a 3.0g/t AuEq
cut-off, the models identified an indicated resource of 888,000 tonnes
averaging 6.7g/t Au, 47.2g/t Ag and 0.15% Cu and a cumulative inferred
resource of 4,060,000 tonnes averaging 4.3g/t Au, 158g/t Ag.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Bravo Gold Corp does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Neither 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.
Homestake Resource Corp.
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