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TSX-V: VEIN | FSE: N071
TORONTO, April 24, 2017 /CNW/ - Enforcer Gold Corp ("Enforcer" or the "Company") (TSX-V: VEIN – FSE: N071) is pleased to announce that it has closed the first tranche of the $4,000,000 non-brokered private placement announced on April 2, 2017 and April 12, 2017 (the "Offering") for gross proceeds of $2,860,740.
Pursuant to the Offering, the Company issued: (a) 7,278,700 units ("Units"), at a price of $0.20 per Unit, for proceeds of $1,455,740; and 5,620,000 "flow-through" common shares (each a "FT Share"), at a price of $0.25 per FT Share, for gross proceeds of $1,405,000. Each Unit will consist of one common share and one-half of one common share purchase warrant ("Warrant"), with each Warrant being exercisable to acquire one common share of the company at a price of $0.30 for a period of 24 months following the closing date of the Offering.
The proceeds from the sale of FT Shares will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada) and Québec Tax Act) and will be renounced for the current taxation year.
In connection with the Offering, members of the selling group received a cash commission equal to 7% of the gross proceeds of the Offering and brokers warrants ("Brokers Warrants") exercisable to acquire that number of common shares of the Company equal to 7% of the aggregate number of Units and FT Shares sold under the Offering. All of the securities issued in connection with the Offering are subject to a hold period expiring on August 22, 2017.
The Company intends to use the proceeds of the financing for exploration on the high-grade Montalembert Gold Project located in Quebec's prolific Abitibi greenstone belt and for general working purposes.
The Company is pleased to announce the recent completion of its very high resolution aeromagnetic survey over the entire 7,300-hectare high-grade Montalembert Gold Project using Geotech's HeliGrad-VLF EM triaxial gradiometer system. The survey was completed safely, on time and within budget. Over 1,800 line kilometers were flown at a 50-meter line spacing. The detailed magnetic coverage will be a major tool for Enforcer's exploration team in delineating structural features of folding, shearing and faulting, which the Company believes are key controls to gold mineralization on the property.
The Company is finalizing its plans for the upcoming exploration program set to commence in mid-May and run uninterrupted through late fall 2017. The program will begin with surface work near the Galena and No. 2 veins and will include increasing the exposure of the veins along their north and south strike directions with accompanying additional channel sampling. Drilling is anticipated to commence in mid to late June. Property-wide, the Company anticipates drilling 6,000 to 8,000 meters using a diamond drill rig and up to 1,000 meters using a reverse circulation rig. Drilling will initially test 4 high-priority targets based on the Company's review of historical data. Once interpretation of the new high-definition magnetic data is completed, prospecting crews will set out to ground-truth anomalies in preparation for follow-up exploration including diamond drilling.
President and CEO, Steve Roebuck comments:
"We are very excited to be in the final stages of preparation for our first comprehensive exploration program on the high-grade Montalembert Gold Project. The property is underexplored in terms of modern exploration techniques, and the high-grade showings have not received the level of investigation commensurate with their potential. The 2017 program is designed to explore the property in a methodical and systematic way, increasing our knowledge of the controls to mineralization in area and expanding and prioritizing targets for diamond drilling."
About Enforcer Gold Corp
Enforcer Gold Corp is earning a 100% interest in the 7300-hectare high-grade Montalembert Gold Project located west of Chibougamau in Quebec's prolific Abitibi Greenstone Belt. The project is very well situated only 5 kilometers from a paved highway, hydro-electric power and with easy access to skilled labour, fuel, food and accommodation it makes exploration costs extremely low.
Two recent channel samples from the Galena vein, taken 20 meters apart along strike length, assayed 510.79 grams per tonne Au over 1 meter and 118.79 grams per tonne Au over 1 meter. Enforcer Gold has committed over $2.2M to fund its 2017 exploration program which includes; data compilation, ground and airborne geophysics, stripping of overburden, mapping, prospecting, channel sampling, RC and diamond drilling.
On behalf of the Board of Directors
Enforcer Gold Corp.
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 news release.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATED SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
SOURCE Enforcer Gold
For further information: Steve Roebuck, CEO, Tel: (647) 496-7984, Cell: (905) 741-5458, Email: [email protected]