Garibaldi Completes Airborne Geophysical Surveys Arranges $12 Million Finance Facility with Alumina Partners
Garibaldi Completes Airborne Geophysical Surveys Arranges $12 Million
Finance Facility with Alumina Partners
Vancouver, BC
,
Sept. 3, 2021
/CNW/ - Garibaldi Resources (TSXV: GGI) (the "Company" or "Garibaldi") is pleased to announce that the 2021 exploration
program will resume drilling at the E&L nickel-copper-cobalt massive sulphide project at Nickel Mountain in
Northwest British Columbia
. This coincides with the
completion of two separate airborne geophysical surveys at the Company's180 sq.km Eskay Claim Group.
Preliminary ZTEM Results
Garibaldi's preliminary ZTEM survey data has identified a number of electro-magnetic (EM) anomalies. The survey detected the response of several conductors
that will be ranked for field work and drill testing, early results are described as follows:
Preliminary 2D Geotech ZTEM survey data over the Nickel Mountain Gabbroic Complex (NMGC) has detected several responses that support results from
earlier VTEM surveys. Five conductors occur along and within the northeast trending gabbroic complex starting from E&L in the southwest to Mount Shirley in
the northeast, and add to the potential for new discovery.
These five separate ZTEM anomalies have never been previously drill tested as VTEM targets due to the higher priority of drilling the E&L mineralized zones.
After producing a ZTEM response, these early results provide support for these anomalies as reliable conductors and priority drill targets.
While final ZTEM 3D interpretation is required for full confirmation, the fact these preliminary 2D ZTEM results coincide specifically with the five earlier VTEM
conductors, is considered to be significant. Particularly interesting is the ZTEM responses extending downward below the VTEM anomalies in four of the five
conductors.
The ZTEM survey also tested beneath the
Bowser
-
Hazelton
geologic contact sequence over Garibaldi's claims. Garibaldi's
Eskay North
claim block borders
the original Eskay Creek mine situated along strike within 3 kms of the historic 21zones.These zones had some of the highest precious metal grades in
history.
Financing Facility
Garibaldi Resources Corp.is pleased to announce that it has entered into a definitive agreement with Alumina Partners (
Ontario
) Ltd. to provide up to
$12 million
CDN
over 3 years by way of a draw down equity financing facility. Alumina Partners is an affiliate of
New York
based private equity firm Alumina Partners, LLC.
The investment agreement is structured for relatively rapid access to equity private placement tranches of up to
$500,000 CDN
each. Each tranche will be a
private placement of units comprised of one Garibaldi common share and one-half a common share purchase warrant good for 3 years.
Steve Regoci Garibaldi's
CEO stated "The investment agreement with Alumina Partners will allow for more flexibility to expand exploration budgets and provide
insurance to accelerate development plans. As the new economy ramps up and demand for depleting critical metals grows, our shareholders will be well
positioned to benefit."
"We're pleased to support Garibaldi as they ramp up exploration programs at Eskay Creek and the Atlin Gold Fields," added
Adi Nahmani
, Alumina's Managing
Member. "The combination of gold and strategic battery metals opportunities in Garibaldi's portfolio is very attractive to us. We believe that the dual drivers of
near-term inflation and rising demand for energy storage solutions will set the stage for a favorable price environment for Garibaldi's future development, and we
look forward to seeing management execute in the remainder of this year and the year to come."
Garibaldi may elect to access funding as and when required at its sole discretion, there are no standby charges or other upfront fees associated with the
investment agreement. The units will be issued at a discount of 15% to 25% from the closing market price at the time each tranche is drawn down and the
warrants will be issued at a 25% premium over the same closing market price. The expiry date of the warrants may be accelerated if they should trade equal to
or greater than twice the exercise price for 20 consecutive days once eligible to be exercised. Each unit issued under the investment agreement will be subject to
acceptance of the TSX Venture Exchange and the securities issued will be subject to a four month hold period from the date of issuance.
Steve Regoci
, Garibaldi's CEO, stated: "There's a great deal of anticipation as to these preliminary ZTEM results which identifies a very intriguing group of
anomalies lined up over a significant distance along the northeast axis from E&L. Their features are extremely interesting and we're eager to drill these targets.
The Eskay Claim group contains enormous potential beyond our recent discoveries. Plans remain to continue to drill test the mineralized E&L extensional
chambers and prepare Casper and Palm springs for drilling. Final 3D processed ZTEM data will help prioritize the next drill targets"
Geophysical Surveys Overview
The first stage of 2021 exploration relied on Geotech's proprietary ZTEM survey to identify similar EM responses as the mineralized E&L gabbro, throughout the
Nickel Mountain Gabbro Complex (NMGC). As well, the ZTEM survey will aid in detecting additional mineralized chambers below the known mineralized gabbroic
intrusive of the E&L system helping to guide targeted deeper drilling. Furthermore, the survey aided in detecting EM sources for numerous Nickel, Copper, Zinc
and Gold samples along the flanks of the NMGC and throughout the property (see slide 21 of Garibaldi Corporate Presentation) visit
www.GaribaldiResources.com
to view Ztem survey map.
Qualified Person
Jeremy Hanson
, P.Geo., VP Exploration Canada for the Company and a qualified person as defined by NI- 43-101, has supervised the preparation of and
reviewed and approved of the disclosure of information in this news release.
About Garibaldi
Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic
development of its assets in some of the most prolific mining regions in
British Columbia
and
Mexico
.
We seek safe harbor.
GARIBALDI RESOURCES CORP.
Per:
"Steve Regoci"
Steve Regoci
, President
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or the accuracy of this release
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SOURCE
Garibaldi Resources Corp.
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For further information:
GARIBALDI RESOURCES CORP., 1150 - 409 Granville Street, Vancouver, BC V6C 1T2 , Telephone: (604) 488-8851, Website:
GaribaldiResources.com
CO: Garibaldi Resources Corp.
CNW 08:00e 03-SEP-21