Granada Closes 1st Tranche Financing
Granada Closes 1st Tranche Financing
ROUYN NORANDA, QC
,
May 8, 2020
/CNW/ - Granada Gold Mine Inc. (TSXV: GGM) (the
"Company" or "Granada") is pleased to announce that the Company has closed the first tranche of
its non-brokered private placement financing raising gross proceeds of
$818,000
.
A total of 8,180,000 units were issued at
$0.10
per unit. Each unit consists of one common share in
the capital of the Company and one share purchase warrant. Each warrant entitles the holder to
purchase one share of the Company for a period of two years from closing at an exercise price of
$0.12 cents
per share.
Certain directors and officers (the "Insiders") participated in the first tranche closing and purchased
an aggregate of 825,000 units for aggregate gross proceeds of
$82,500
. Participation by Insiders of
the Company in the private placement is considered a "related party transaction" pursuant to
Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions
("
MI
61-101
"). The Company is exempt from the requirements to obtain a formal valuation and minority
shareholder approval in connection with the Insiders' participation in the financing in reliance of
sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that participation in the private
placement by the Insiders did not exceed 25% of the fair market value of the Company's market
capitalization.
All securities issued are subject to a four-month-and-a-day hold period expiring on
September 9,
2020
, in accordance with applicable securities laws. The private placement is subject to final
Exchange approval.
The proceeds of the private placement will be used for surface exploration, trenching, and historical
resampling of drill core on the Company's Granada Gold Property in Québec and for general
working capital purposes.
About Granada Gold Mine Inc.
Granada Gold Mine Inc. continues to develop the Granada Gold Property near
Rouyn-Noranda,
Quebec
. Approximately 120,000 meters of drilling has been completed to date on the property,
focused mainly on the extended LONG Bars zone which trends 2 kilometers east-west over a
potential 5.5 kilometers of mineralized structure. The highly prolific Cadillac Break, the source of
more than 75 million plus ounces of gold production in the past century, cuts through the north part of
the
Granada
property.
Pit-Constrained Mineral Resources at
Granada
disclosed on
February 13
th
, 2019 Press Release
prepared by SGS independent QP stand at:
Category
Tonnes
Grade (g/t AU)
Contained Gold (oz.)
Measured
12,637,000
1.02
413,000
Indicated
9,630,000
1.13
349,000
Measured & Indicated
22,267,000
1.06
762,000
Inferred
6,930,000
2.04
455,000
Mineral resources which are not mineral reserves do not have demonstrated economic viability. An
Inferred Mineral Resource has a lower level of confidence than that applying to a Measured and
Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably
expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral
Resources with continued exploration.
+ Open pit mineral resources are reported at a cut-off grade of 0.4 g/t Au within a conceptual pit
shell. Cut-off grades are based on a gold price of
US$1,300
per ounce, a foreign exchange rate of
US$0.76
, and a gold recovery of 95%.
The Granada Shear Zone and the South Shear Zone contains, based on historical detailed mapping
as well as from current and historical drilling, up to twenty-two mineralized structures trending east-
west over five and half kilometers. Three of these structures were mined historically from two shafts
and two open pits. Historical underground grades were 8 to 10 grams per tonne gold from two
shafts down to
236 m
and
498 m
with open pit grades from 5 to 3.5 grams per tonne gold
The Company is in possession of all mining permits that are required to commence the initial mining
phase, known as the "Rolling Start", which allows the company to mine up to 550 tonnes per day.
Additional information is available at
www.granadagoldmine.com
.
"Frank J. Basa"
Frank J. Basa P. Eng
.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service 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 including but not limited to
comments regarding the timing and content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes, etc. 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.
SOURCE
Granada Gold Mine Inc.
View original content:
http://www.newswire.ca/en/releases/archive/May2020/08/c4651.html
%SEDAR: 00004087E
For further information:
Frank J. Basa, P. Eng., President and CEO at 1-819-797-4144 or Wayne
Cheveldayoff, Corporate Communications, at 416-710-2410 or [email protected]
CO: Granada Gold Mine Inc.
CNW 16:30e 08-MAY-20