Metallis Closes $3.3 Million Private Placement and Provides Updates on Drill Program at Kirkham Property
Metallis Closes $3.3 Million Private Placement and Provides Updates on
Drill Program at Kirkham Property
VANCOUVER, BC,
Oct. 20, 2020
/CNW/ -
Metallis Resources Inc.
(TSX-V: MTS) (OTCQB: MTLFF) (FSE: 0CVM)
(the "Company" or "Metallis") today
announces the closing of the final tranche of its non-brokered private placement (the "Financing"). Details of the Financing can be found in the News Releases
dated
September 28, 2020
and
October 7, 2020
. The Company also provides an update on its 2020 Drill program (the "Program") which is still ongoing at its
100%-owned Kirkham Property (the "Property"). The Property is situated within the prolific
Eskay Camp
of the Golden Triangle in northwest
British Columbia
, a
district known for past producing Eskay Creek and Snip gold mines, Seabridge's KSM porphyry deposits and Pretium's Brucejack gold mine.
Drill Program
The primary objective of the 2020 Program is to test the depth potential of the 4 km long gold-rich Cliff Porphyry System (the "System"). As of
October 19, 2020
,
3,188 meters ("m") have been drilled in 4 holes with an average depth of approximately
800m
per hole. A visual examination of the core has highlighted a
significant expansion of the gold-rich system in all directions. Three of the four holes completed have now been cut, logged, and submitted to the assay laboratory
and results are currently pending.
Drilling Highlights:
Continuity of porphyry-style and overprinted silicification-style mineralization has now been demonstrated over a vertical depth extent of
850m
from the
surface to the deepest drill intersection;
Drilling higher in the system has encountered a series of mineralized porphyry dikes, altered sediments and epithermal style vein breccias. Broad intercepts of
hydrothermal silicification with increasing copper-gold grades at significant depths has confirmed a sub-vertical morphology of the porphyry system; and
Continuous copper-gold mineralization from the surface to
850m
was drilled in hole KH20-37 which includes a
70m
thick section of hydrothermal magnetite
breccias with calc-silicate alteration and higher copper concentrations in the visuals.
The Program has now confirmed that distinct resistivity highs outlined in a recent IP survey are related to the highly silicified and mineralized porphyry and
adjacent sedimentary country rocks. The expansion of mineralization into the surrounding sediments significantly broadens the width of the System beyond the
intrusion. Syn-mineral cross faults within the System are now interpreted as fluid pathways exploited by hydrothermal silicification and mineralization. Drill core
logging indicates that, as previously thought, vein density and copper-gold grades improve with depth beyond
500m
.
Dr. Razique, Metallis' Chief Geologist stated: "The extensive hydrothermal alteration/mineralization and brecciation at least 800 meters deep demonstrates a
remarkably efficient porphyry system." He went on to add "The deep drilling program has provided us a unique opportunity to expand the gold-rich halos in and
around the Cliff porphyry system."
Private Placement
The second and final tranche raised an additional
$320,000
comprised of 50,000 non-flow-through units at
$0.40
per unit and 666,666 flow-through units at
$0.45
per unit. Total proceeds of the two-tranche financing are
$3,314,350
, consisting of 4,855,000 non-flow-through units at
$0.40
per unit for proceeds of
$1,942,000
and 3,049,666 flow-through units at a price of
$0.45
per flow-through unit for proceeds of
$1,372,350
.
Each non-flow-through unit consists of one common share and one non-flow-through, non-transferable share purchase warrant. Each warrant will entitle the holder
to purchase one additional common share at a price of
$0.60
per share for a 3-year-period.
Each flow-through unit consists of one flow-through common share and one non-flow-through, non-transferable share purchase warrant. Each warrant will entitle
the holder to purchase one additional non-flow-through common share at a price of
$0.68
per share for a 3-year period.
The flow-through shares will qualify as "flow-through shares" for the purpose of the Income Tax Act (
Canada
) (the "Act"). The proceeds of the flow-through private
placement will be incurred on "Canadian exploration expenses" (within the meaning of the Act). The Company will renounce these expenses to the purchasers with
the effective date no later than
December 31, 2020
, and as required under the Act.
The flow-through proceeds from the Financing will be used strictly for qualifying exploration expenditures and the non-flow-through proceeds will be used for both
exploration and general working capital.
RBC Investor Services acted as a finder in association with certain subscriptions in the second tranche. The Company paid RBC
$21,000
in cash finders fees and
issued 46,666 finder's warrants exercisable at
$0.40
per share for 3 years from the date of issuance.
Total finders fees paid in the two-tranche financing were
$24,150
plus 53,666 finders' warrants exercisable into common shares at a price of
$0.40
per share for
a three-year period.
About the Kirkham Property
The wholly-owned 106 sq. km Kirkham Property is located about 65 km north of
Stewart, B.C.
, in the heart of the Golden Triangle's prolific
Eskay Camp
. The
Property is prospective for multiple mineral deposit types and is located along a strategic geological boundary – the "Red-line" exposed on the western margin of
the Eskay Rift system in the Golden Triangle, northwestern
British Columbia
.
The northern border of Kirkham is contiguous to Garibaldi Resources' E&L Nickel Mountain Project. The northeast corner of Kirkham is within 12 km of the Eskay
Creek mine while the eastern border is within 15 - 20 km of Seabridge Gold's KSM deposits and Pretium Resources' Brucejack mine.
About Metallis
Metallis Resources Inc. is a
Vancouver
-based company focused on the exploration of gold, copper, nickel, and silver at its 100%-owned Kirkham Property
situated in northwest
British Columbia's
Golden Triangle. Metallis trades under the symbols MTS on the TSX Venture Exchange, MTLFF on the OTCQB
Exchange, and 0CVM on the Frankfurt Exchange. The Company currently has 44,060,433 common shares issued and outstanding after the closing of the second
tranche.
On behalf of the Board of Directors:
/s/ "Fiore Aliperti"
Chief Executive Officer, President and Director
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This Press Release may contain statements which constitute 'forward-looking' statements, including statements regarding the plans, intentions, beliefs and current
expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words
"may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its
management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of
future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in
the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian
securities' regulatory authorities, including quarterly and annual Management's Discussion and Analysis, which may be viewed on SEDAR at
www.sedar.com
.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results
may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has attempted to
identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as
intended, planned, anticipated, believed, estimated or expected. The Company does not intend, and does not assume any obligation, to update these forward-
looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release. The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.
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For further information:
Tel: 604-688-5077, Email: [email protected], Web: www.metallisresources.com
CO: Metallis Resources Inc.
CNW 09:00e 20-OCT-20