VANCOUVER, Feb. 16, 2018 /CNW/ - Northern Vertex Mining Corp. (TSX.V: NEE) (OTC Nasdaq Intl.: NHVCF)(the "Company" or "Northern Vertex") is pleased to announce we have entered the final stages of commissioning at the Moss Mine. We have commenced leaching ore on the pad in preparation for our first gold pour in Q1 2018. The final US$3M working capital draw is underway as we transition from development to production at the Moss Gold Mine.
Kenneth Berry, President and CEO, stated: "We are extremely pleased to see the progress at the Moss Mine. The crushing and loading of ore onto the heap leach pad continues to exceed expectations. The rate of mineralized (pregnant) solution percolating through the heap this early is also encouraging. Our processing team is making preparations to circulate pregnant solution through the Merrill Crowe extraction facility in anticipation of our first gold pour."
OPERATIONAL HIGHLIGHTS :
- 21,775 metric tonnes crushed, agglomerated and stacked on the pad for processing
- Average throughput of 425 metric tonnes per operating hour
- Crushers operating 7 days per week on day shift
- Second daily shift to be added through ramp-up
- Leach solution pumped to pad starting February 8th
- Grades of the pregnant solution are steadily rising as expected as more stacked material has leach solution applied
- New drip-lines added daily to stacked ore material
- Merrill Crowe (MC) Plant in final stages of commissioning
- Pregnant solution to be processed through the MC plant within the next couple of days
- 67,130 metric tonnes of ore grade material mined to date
- Blast hole ore grades as high as 4.0 g/t in the Hill #2 within Moss structure
Furthermore, in connection with the Company's convertible loan facility agreement with Greenstone Resources II L.P. ("Greenstone") dated December 20, 2017, as announced on December 21, 2017, the Company has provided Greenstone with notice of its intention to draw down the available balance of US$3M (the "Second Advance") under its US$6M non-revolving working capital facility ("Facility") with Greenstone. Subject to the satisfaction of applicable conditions precedent, the Second Advance is scheduled to be completed on or around March 12, 2018 and will be evidenced by way of a convertible debenture (the "Debenture"). The terms of the Debenture remain unchanged from the terms disclosed in the Company's press release dated December 21, 2017, as follows:
- maturity and full principal repayment date of January 31, 2020, subject to Greenstone having not elected to convert at their option at any time prior to the maturity date the principal amount outstanding;
- interest rate of 12% per annum, payable in cash, quarterly in arrears;
- conversion price is the lower of: (i) Cdn$0.70; and (ii) if the Company has announced a potential merger, amalgamation, arrangement, acquisition or other type of business transaction that results in a change of control, or an M&A Transaction (including the issuance by the Company of more than 20% of its stock), as the case may be, the 20 day VWAP prior to such announcement, subject to the conversion price not being less than Cdn$0.52; and
- No further advances may be made under the Facility.
The Debenture, and any common shares issued upon conversion of the Debenture, will be subject to a four month hold period from the date of issuance of the Debenture in accordance with applicable Canadian securities laws. The proceeds from the initial advance will be used by the Company primarily for commissioning of its Moss Mine project in Arizona, along with exploration and for general corporate and working capital requirements.
Greenstone is a significant shareholder of the Company holding an aggregate of 51,769,230 common shares of the Company, representing approximately 29.6% of the issued and outstanding common shares of the Company on an undiluted basis, and accordingly, the transaction is a non-arm's length transaction under the policies of the Exchange. A facility fee of US$90,000 will be paid to Greenstone on the date of the Second Advance.
The foregoing technical information contained in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards for Disclosure for Minerals Projects) and reviewed on behalf of the Company by Joseph Bardswich, P. Eng. A Director of Northern Vertex, a Qualified Person.
About Northern Vertex
Northern Vertex Mining Corp. is an exploration and mining company focused on the reactivation of its 100% owned Moss Mine Gold/Silver Project located in NW Arizona, USA. The Company's management comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Company is focused on working effectively and respectfully with its stakeholders in the vicinity of the historical Moss Mine and enhancing the capacity of the local communities in the area.
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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.
This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements including but are not limited to comments regarding the timing and content of upcoming work and analyses. Forward-looking statements usually include words such as scheduled, may, intend, plan, expect, anticipate, believe or other similar words. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. To the best of management's knowledge, Northern Vertex is the next publicly traded company to initiate gold and silver production scheduled for Q1 2018 in the USA. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations. US investors should be aware that mining terminology used for Canadian mineral project reporting purposes differs significantly from US terminology.
SOURCE Northern Vertex Mining Corp.
For further information: please visit www.northernvertex.com or contact Investor Relations at: 604-601-3656 or at 1-855-633-8798.