CALGARY, Sept. 28, 2012 /CNW/ - Boxxer Gold Corp. (TSX Venture: BXX/OTC: BXXRF) ("Boxxer" or the "Corporation") today announced its intention to raise up to $1,750,000 by way of a non-brokered private placement (the "Offering") of a combination of units ("Units") and flow-through units ("FT Units"). The Offering is expected to close on or about November 15, 2012, and the Offering is subject to regulatory approval.
A total of up to 10,000,000 Units will be offered for sale at a price of $0.075 per Unit to raise total proceeds of up to $750,000. Each Unit will consist of one common share in the share capital of Boxxer ("Common Share") and one-half of a Common Share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant shall be exercisable into one Common Share at a price of $0.12 until one (1) year from the date of closing.
In addition, a total of up to 10,000,000 FT Units will be offered for sale at a price of $0.10 per FT Unit to raise total proceeds of up to $1,000,000. Each FT Unit will consist of one Common Share issued on a "flow-through" basis as defined in the Income Tax Act (Canada) and one-half of a non-flow-through Warrant. Each whole Warrant shall be exercisable into one Common Share at a price of $0.12 until one (1) year from the date of closing.
Each Warrant (whether issued as part of the Units or the FT Units) is subject to accelerated expiry provisions such that if any time after the completion of the Offering the closing price of the Common Shares on the TSX Venture Exchange is at least $0.12 per Common Share for 15 consecutive days the Corporation may give notice to the holders that each Warrant will expire 15 business days from the date of providing such notice.
The proceeds of the Offering will be used primarily for additional diamond drilling on the East Breccia copper-molybdenum project in Ontario and the Gordon Lake gold project located in the NWT, Canada and for general working capital purposes.
A finder's fee of up to 9% of the gross proceeds of the Offering may be paid in cash on all or any part of the Offering. Additionally, finder's warrants exercisable into Common Shares of Boxxer may be issued in an amount up to 9% of the number of Units and FT Units sold under the Offering. The finder's warrants will be exercisable into Common Shares at a price of $0.075 per Common Share for a period of one year from the date of issuance of the finder's warrants.
Boxxer's President and CEO, Elmer B. Stewart, commented, "The recent diamond drilling results for the East Breccia project and the historical diamond drilling results from the Gordon Lake gold project suggest that both projects have the potential to expand the previously drilled zones of mineralization. The East Breccia project is a polymetallic copper project located in central Ontario in the emerging Batchawana mineral district. The Gordon Lake gold project hosts 17 zones of gold mineralization over a one km distance in an iron carbonate-sericite altered shear zone".
Highlights of the Gordon Lake project include:
- 59 MINERALIZED DRILL HOLES IN 3 ZONES
- HISTORICAL ESTIMATE OF 12,500 TONNES GRADING 10.3 G/T GOLD IN MAIN ZONE
- HISTORICAL ESTIMATE OF 106,500 TONNES GRADING 11.3 G/T GOLD IN SOUTH ZONE
The historical estimate uses categories that are different than the categories set out in sections 1.2 and 1.3 of National Instrument 43-101. The historical estimate was prepared by M. Balog (1989) using longitudinal sections of the veins and a polygonal block method. Polygons included all material to the midpoint between adjacent holes. Polygons having no adjacent holes were extrapolated a maximum of 15 meters. The historical estimation used a 15 metre search radius, a 2.70 tonnes/cubic meter density, and a 4.0 g/t cutoff over a minimum distance of 1.5 metres. To convert the historical estimate to a current resource, Boxxer would have to complete a sufficient amount of verification diamond drilling to verify the historical gold values and continuity of the mineralization. In addition a Qualified Person would to need to review the historical assay data, compare the historical information to the information obtained from the verification drilling program using best practice principals to make a determination regarding the comparability of the two data sets.
The historical estimate reported for the Gordon Lake project is historical in nature and cannot be relied upon. A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource or mineral reserve and Boxxer is not treating the historical estimate as a current mineral resource or reserve. Boxxer wishes to clarify that insufficient work has been completed to verify the reported historical data and that no mineral resource occurs within the Gordon Lake property. The reported historical mineralized intersections have not been verified and the historical data has not been adequately reviewed by an independent Qualified Person and cannot and should not be relied upon.
Elmer B. Stewart, MSc. P. Geol., President and CEO of Boxxer Gold, is Boxxer's nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has reviewed the technical information disclosed in this news release.
About Boxxer Gold Corp.
Boxxer is a Canadian junior resource corporation focused on the exploration of the Boss and Buena Vista copper projects in the state of Nevada, the DOK copper-gold porphyry property in Northwest B.C., and the East Breccia copper-silver-molybdenum property in Ontario. Boxxer also has the Crescent Peak gold-silver project in Nevada and the Gordon Lake gold project located 110 kilometres north of Yellowknife NWT, Canada.
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.
Forward-Looking Statements: This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There is no certainty that the proposed financing will be completed or that the proposed exploration drilling will intersect significant mineralization. For any forward-looking information given, Management has assumed that the results it has received and the interpretation thereof are reliable, and has applied geological and geophysical interpretation methodologies which are consistent with industry standards. Although Management has a reasonable basis for any conclusions drawn, actual results may differ materially from those currently anticipated in such forward-looking statements. Additional assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Boxxer's disclosure documents on the SEDAR website at www.sedar.com. Boxxer does not undertake to update any forward-looking information except in accordance with applicable securities laws.
SOURCE: Boxxer Gold Corp.
For further information:
For more information on Boxxer please visit our website at www.boxxergold.com or contact:
Boxxer Gold Corp
John L. Maslanyk
Vice President & Chief Information Officer
Toll Free: 1-888-479-3596
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