Avidian Announces Spinout of its Canadian Property And Value Creation Initiative through High Tide Resources
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Avidian Announces Spinout of its Canadian Property
And Value Creation Initiative through High Tide Resources
TORONTO, Ontario, Novembe r 26, 2018 – Avidian Gold Corp. (“Avidian” or the
“Company”) (TSX -V:AVG) is pleased to announce that it has spun out its Strickland base
metal project located in southern Newfoundland, into a 100% -owned Ontario incorporated
private company called High Tide Resources Corp. (“High Tide”).
Avidian’s goal will be to take High Tide public within the next 18 months.
The creation of High Tide is part of Avidian’s value creation initiative whereby any property
asset that is not deemed to be core to its portfolio or is not being properly valued within
Avidian will be spun out into a subsidiary company . The objective is to maximiz e
shareholder value for Avidian properties held in Canada and Nevada.
Key benefits to Avidian and its shareholders include:
• No financial dilution to Avidian;
• Avidian will retain a 50 % in terest in High Tide following a flow-through share
financing; and
• Avidian, via its share ownership , will have exposure to any exploration success High
Tide has in Newfoundland.
High Tide has also entered into an option agreement to acquire a 100% interest in the Black
Raven Gold Project, located in northern Newfoundland.
High Tide’s Board of Directors will mirror the current board of Avidian comprised of Messrs
David Anderson, Doug Kirwin, James Polson, Nick Tintor and Dino Titaro , with Mr. David
Anderson appointed as Chairman and CEO of High Tide.
High Tide Properties
Figure 1 below shows the location of the two High Tide properties in Newfoundland.
Black Raven
The 12.25 sq km Black Raven prop erty hosts numerous high -grade gold showings where
grab samples include 32.1 g/t Au, 18.3 g/t Au and 14.0 g/t Au, with elevated to high- grade
copper, lead and zinc values and anomalous silver and molybdenum.
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The highest metals values from different grab samples are 671 g/t Ag, 3.8% Cu, 32.0% Pb,
10.6% Zn and 8,370 ppm Mo . Although the property as a whole is significantly
underexplored, approximately 10% has been surveyed by a ground IP/resistivity geophysical
program that has identified several chargeability ano malies proximal to known
mineralization.
It is anticipated that drill targets can be developed quickly in these areas and in other areas
of untested surface mineralization where High Tide has defined five areas for its immediate
exploration focus.
The mineralization model is an Intrusion Related Gold System (“IRGS”), with a possible
porphyry component. This is similar to mineralization in the Tintina Gold Belt in Alaska and
Yukon where Avidian has developed expertise over the past three years.
High Tide has an option to earn a 100% interest in the Black Raven property over 3 years via
the issuance of $275,000 in shares and the completion of at least $70,000 of exploration
work. The vendor retains a 2% NSR of which 1.75% can be purchased by High Tide for
$2,000,000.
It should be noted that assay results from grab samples, due to their selective nature, may
not be representative of the overall grade and extent of mineralization i n the subject area.
Grab sample values are from a database of 375 samples collected with values ranging from
below or at the detection limit to the values quoted above.
Strickland
The 5.25 sq km Strickland property is located in southern Newfoundland and is 100% owned
by High Tide. The property covers the best 3 strike km of a >20 km long prospective tuff
horizon in Paleozoic interlayered submarine volcanic and sedimentary rocks.
Surface results collected by High Tide personnel in 2012 include channel samples of 4 m
grading 0.3 g/t Au, 263 g/t Ag, 2.05% Pb and 3.96% Zn and 8 m grading 1.37 g/t Au, 19.7
g/t Ag and 1.5% Cu. The exploration target for the property is to define one or more
precious metal rich VMS deposits.
Three resources, which are historical estimates and will require follow up work, were
previously defined on the property by F alconbridge Nickel Mines Inc. between 1980 and
1981.
Main Zone: 260,000 t grading 5.25% Pb-Zn, 195 g/t Ag
North Extension: 750,000 t grading 2% Pb-Zn
Silver Hill: 15,000 t grading 2% Pb-Zn, 480 g/t Ag
Copper-gold stringer mineralization is also present in several showings.
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The resource estimates described above are historical estimates as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral Projects S.2.4 (“NI 43-101”).
The Company has not completed the work required to independently analyze and verify the
results of the previous operators nor has a qualified person completed sufficient work to
classify the estimates as current mineral resources or mineral reserves. As a result, Avidian is
not treating these estimates as current mineral resources or mineral reserves.
The Company believes these historic results provide an indication of the potential of the
property and are relevant from an on-going exploration perspective.
In addition to the properties above, High Tide is also reviewing other gold projects in Canada
with the objective of possibly acquiring a third property in order to build critical mass within
the Company.
High Tide Financing
To fund the exploration program required to advance the properties, High Tide is planning a
flow-through share financing by way of a non- brokered private placement of up to $ 1
million. Flow- through shares will be issued at a price of $0.10 . The pre-money valuation of
High Tide is $1.0 million.
Nevada Properties
Avidian recognizes that its current valuation is predomina ntly based on its Alaskan assets.
As part of its v alue creation initiative Avidian is also conducting a strategic review on how
best to maximize value from its two Nevada properties, Jungo and Dome Hill.
About Avidian Gold Corp.
Avidian brings a disciplined and veteran team of project managers together with a regional
scale advanced stage gold -copper exploration portfolio in Alaska. Avid ian’s Golden Zone
project also hosts a NI 43 -101 Indicated gold resource of 267,400 ounces (4,187,000 tonnes
at 1.99 g/t Au) plus an Inferred gold resource of 35,900 ounces (1,353,000 tonnes at 0.83 g/t
Au). Additional projects include Amanita which is adj acent to Kinross Gold’s Fort Knox gold
mine in Alaska and Jungo and Dome Hill in Nevada . The Strickland and Black Raven
properties, both located in Newfoundland, are held within the subsidiary company Hide
Tide Resources Corp.
Avidian is focused on and committed to the development of advanced stage mineral
projects throughout first world mining friendly jurisdictions using industry best practices
combined with a strong social license from local communities. Avidian has 56,160,7 56
shares issued and outstanding.
For further information, please contact:
Nick Tintor, President and CEO
Mobile: 416 953 4244
Office: 416 987 0855
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Email: [email protected]
The technical information contained in this news release has been approved by Dr. Tom
Setterfield, P.Geo., Vice President Exploration of Avidian, who is a Qualified Person as
defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Further detailed in formation on the Golden Zone Property can be found in the Technical
report dated August 17, 2017 prepared by Leon McGarry, B.Sc., P.Geo and Ian D. Trinder,
M.Sc., P.Geo (the “Technical Report”) that has been posted on SEDAR.
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 news release.
Forward-looking Information
Certain statements contained in this news release constitute "forward- looking information"
as such term is used in applicable Canadian securities laws. Forward -looking information is
based on plans, expectations and estimates of management at the date the information is
provided and is subject to certain factors and assumptions, including, that the Company's
financial condition and development plans do not change as a result of unforeseen events
and that the Company obtains regulatory approval. Forward- looking information is subject
to a variety of risks and uncertainties and other factors that could cause plans, estimates
and actual results to vary materially from those projected in such forward- looking
information. Factors that could cause the forward- looking information in this news release
to change or to be inaccurate include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, that occurrences such as those
referred to above are realized and result in delays, or cessation in planned work, that the
Company's financial condition and development plans change, and delays in regulatory
approval, as well as the other risks and uncertainties applicable to the Company as set forth
in the Company's continuous disclosure filings filed under the Company's profile at
www.sedar.com. The Company undertakes no obligation to update these forward- looking
statements, other than as required by applicable law.
This news release does not constitute an offer of securities for sale in the United States. The
securities being offered have not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and such securities may not be offered or sold within
the United States absent U.S. registration or an applicable exemption from U.S. registration
requirements.
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Figure 1 – High Tide Property Locations