Equity Metals Closes First Tranche of Offering and Outlines Continued Exploration Program at Silver Queen
Equity Metals Closes First Tranche of Offering
and Outlines Continued Exploration Program
at Silver Queen
Vancouver, British Columbia--(Newsfile Corp. - January 3, 2023) -
Equity Metals Corporation
(TSXV:
EQTY) ("Equity" or the "Company") has closed the first tranche of its previously reported non-brokered
private placement (the "Offering") by issuing a total of 13,045,233 flow-through units. The first tranche
consists of a total of 8,333,333 flow-through units (the "FT Units") sold at a price of $0.12 per FT Unit for
gross proceeds of $1,000,000; and 4,711,900 premium flow-through units (the "PFT Units") sold at a
price of $0.147 per PFT Unit for gross proceeds of $692,650 for aggregate total gross proceeds of
$1,692,650.
Each FT Unit and PFT Unit consists of one flow-through common share and one non-flow through share
purchase warrant ("Warrant"), with each Warrant exercisable to purchase one additional common share
for a period of three years at an exercise price of $0.15 per share.
Securities issued pursuant to this
tranche of the Offering, including common shares, share purchase warrants and finder's warrants issued
as finder's fees, carry a legend restricting trading of the securities until April 30, 2023.
The Company expects to close a second tranche of the Offering in January 2023 by issuance of up to
10,500,000 non-flow-through units (the "NFT Units") to be sold at a price of $0.10 per NFT Unit for gross
proceeds of $1,050,000. Each NFT Unit will consist of one non-flow-through common share and one
Warrant, exercisable at $0.15 for a period of three years.
Finders' fees and hold period
The Company may pay finders' fees consisting of cash and non-transferable warrants in connection with
the Offering, subject to compliance with the policies of the TSX Venture Exchange. All securities issued
and sold under the Offering will be subject to a hold period expiring four months and one day from their
date of issuance. Completion of the Offering and the payment of any finders' fees remain subject to the
receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Use of Proceeds and 2023 work program
The gross proceeds received from the sale of the FT Units and PFT Units will be used for work
programs on the Company's Silver Queen, Au-Ag, exploration property, in British Columbia. The net
proceeds received from the sale of the NFT Units will be used for general working capital and may
include exploration expenditures.
It is anticipated that exploration activities at Silver Queen will commence during Q2-2023 and will initially
test extensions of the Camp and Sveinson targets, identified in drilling from 2021-22 exploration
programs. Further work will then concentrate on the confirmation and extension of mineralization on the
George Lake and George Lake South targets and the identification of additional bonanza-grade silver
mineralization on the western side of the property.
About Silver Queen Project
The Silver Queen project is a premier gold-silver property with over 100 years of historical exploration
and development and is located adjacent to power, roads and rail with significant mining infrastructure
that was developed under previous operators Bradina JV (Bralorne Mines) and Houston Metals Corp. (a
Hunt Brothers company). The property contains two historical declines into the No. 3 Vein, camp
infrastructure, and a maintained Tailings Facility.
The Silver Queen property consists of 45 mineral claims, 17 crown grants, and two surface crown grants
totalling 18,852ha with no underlying royalties. Mineralization is hosted by a series of epithermal veins
distributed over a 6 sq km area.
On December 1, 2022 (NR-12-22), the Company reported an independently estimated, Mineral
Resource Estimate ("MRE") for Silver Queen which increased an earlier MRE, initially reported on July
16th, 2019, by +187% in the Indicated category and by +30% in the Inferred category on a AgEq basis
with approximately 74% of the new MRE classified as Indicated Resources. The Company has
expended C$6.75 million on exploration of the Silver Queen project since 2019 resulting in a very low
discovery cost of $0.15/oz of added AgEq or $11/oz of added AuEq. The MRE remains open for
additional delineation west of the Camp Target and within the Sveinson Target. In addition, there are
several targets that have only been tested by a few drill holes and remain very attractive areas for new
discoveries and MRE increase.
For more information on the recent MRE please refer to the Company's News Release NR-12-22 dated
December 1, 2022.
About Equity Metals Corporation
Equity Metals Corporation is a Manex Resource Group Company. Manex provides exploration,
administration, and corporate development services for Equity Metals' two major mineral properties, the
Silver Queen Au-Ag-Zn-Cu project, located in central B.C., and the Monument Diamond project, located
in Lac De Gras, NWT. The Company also has a 1% royalty (Greenwood Royalty) and a 100% working
interest in the La Ronge Silica Project.
The Company owns 100% interest, with no underlying royalty, in the Silver Queen project, located along
the Skeena Arch in the Omineca Mining Division, British Columbia. The property hosts high-grade,
precious- and base-metal veins related to a buried porphyry system, which has been only partially
delineated. The Company also has a controlling JV interest in the Monument Diamond project, NWT,
strategically located in the Lac De Gras district within 40 km of both the Ekati and Diavik diamond
mines. The project owners are Equity Metals Corporation (57.49%), Chris and Jeanne Jennings
(22.11%); and Archon Minerals Ltd. (20.4%). Equity Metals is the operator of the project.
The 100% controlled La Ronge Silica Project is an historic sand quarry located in central Saskatchewan,
approximately 60 kilometers south-southeast of La Ronge, Saskatchewan and 210 kilometers west of
Flin Flon, Manitoba. Preliminary studies indicate the silica deposit may be developed into a simple and
profitable, low-cost mining and washing operation to produce high-purity silica (>98% SiO2), a specialty
product for the EV battery industry.
Robert Macdonald, MSc. P.Geo, is VP Exploration of Equity Metals Corporation and a Qualified Person
as defined by National Instrument 43-101. He is responsible for the supervision of the exploration on the
Silver Queen project and for the preparation of the technical information in this disclosure.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of
the securities in the United States of America. The securities have not been and will not be
registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities
laws and may not be offered or sold within the United States or to U.S. Persons (as defined in
the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an
exemption from such registration is available.
On behalf of the Board of Directors
"Joseph Anthony Kizis, Jr."
Joseph Anthony Kizis, Jr., P.Geo
President, Director, Equity Metals Corporation
For further information, visit the website at
https://www.equitymetalscorporation.com
; or contact us at
604.641.2759 or by email at
.
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 may contain forward-looking statements. 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. Factors that could cause actual
results to differ materially from those in forward-looking statements include the timing and receipt of
government and regulatory approvals, and continued availability of capital and financing and general
economic, market or business conditions.
Equity Metals Corporation 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.
This news release is not intended for distribution to United States newswire services or
dissemination in the United States.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/150021