Signature Resources Announces Commencement of a Strategic Review Process and Corporate Restructuring
Signature Resources Announces
Commencement of a Strategic Review Process
and Corporate Restructuring
Toronto, Ontario--(Newsfile Corp. - November 15, 2022) - Signature Resources Ltd. (TSXV: SGU)
(OTCQB: SGGTF) (FSE: 3S3) ("Signature" or the "Company") announces it has commenced a strategic
review process and corporate restructuring (the "Strategic Review Process and Restructuring"). While
various technical consultants have given management and the board of directors a clear indication of the
technical merits and the clear exploration potential of the Lingman Lake Project, the current challenging
market conditions requires that the Company strategically pivot to ensure that shareholders may
eventually benefit from the deeply discounted fundamental value at Signature.
As part of the Strategic Review Process and Restructuring, the Company has:
Initiated a Strategic Review Process to find the best alternative to advance the Lingman Lake
Project that benefits Signature Resources' stakeholders
Reduced monthly costs by more than 75%
Initiating a $800,000 non-brokered private placement, designed to give the company more than
12-months of working capital
Exercising the previously approved 5:1 share consolidation resulting in more attractive share
structure for investors
Canceled all Management Long-Term Incentive Options granted March 9, 2022
Streamlined management with Robert Vallis resigning as President, CEO and Director and
Rickardo Welyhorsky resigning his position of COO
Appointed Dan Denbow, current Director of the Company, as interim-CEO
Share Consolidation
The company will commence the 5:1 share consolidation approved by shareholders at the annual
general and special meeting of shareholders held on May 26, 2022 and will initiate the process for share
consolidation immediately. The share consolidation will result in a much tighter share structure with 55.1
million shares outstanding on a post consolidated
basis.
The adjusted fully diluted share count is 64.8
million shares outstanding including 2.4 million warrants with an average exercise price of $1.16 per
share and 7.2 million options with an average exercise price of $0.45 per share.
The Consolidation is
subject to final Exchange approval.
Non-brokered private placement
The non-brokered private placement of up to C$800,000 (the "Offering") is being offered at $0.10 per
share (based on a post 5:1 consolidation). Over half of the Offering is expected to be subscribed for by
members of the Company's board of directors.
"These challenging market conditions have forced the Company to focus on aggressively reducing
spending and ensuring the long-term viability of the Company. The work done by our technical
consultants reinforces the resource potential at Lingman Lake. With approximately $2.5 million of
equipment and consumables already at site with two of our own diamond drill rigs, we are poised to
modernize and expand the data set and publish a modern resource. In addition, the option value of
our project gets greatly enhanced with each passing day as the Ontario government advances power
and roads into this region (
Central Corridor Energy Group progress charts
).
I would like to thank both Rob and Rickardo for their hard work and their commitment to helping the
Company during this review process. I would also like to thank Dan and the entire Signature team for
all their hard work focused on streamlining the Company."
-
Paolo Lostritto, P.Eng - Chairman of the Board
Initial 43-101 Compliant Resource Estimate
The Company has made substantial progress towards completing an initial 43-101 compliant resource
estimate.
External consultants have recommended re-drilling the portion of the historical drilling
completed in the 1940's that reported significant high-grade intercepts (~5,000 metres). This is
expected to provide a more comprehensive initial resource estimate for the Lingman Lake deposit.
The Company anticipates that completion of a re-drill program on the historic high-grade mineralization
would yield further insights on the controls and distribution of high-grade mineralization within the
deposit.
Additionally, drilling has been relatively constrained to the upper 200m of the zones hosting the
Lingman Lake mineralization. The Company recognizes potential to extend the mineralization to depth
and along strike. Importantly, the geophysical data and geology points to the potential for additional
parallel zones to the North and South of the area drilled to date.
Considerable scope remains for future discoveries within the Company's land holdings. The Company
identified a number of regional geological targets based on the interpretation of the regional airborne
MAG-VLF surveys late 2021 across the 30Km greenstone belt largely controlled by Signature (see
release dated 30 November 2021). Ranking of the regional targets can be further improved by
advancing our understanding of the local controls of mineralization through the completion of the
geological modelling done in support of the resource estimation.
About J. Dan Denbow, CFA
Dan Denbow has spent over 30 years in capital markets with his most recent experience associated
with USAA Investment Management Company. As a portfolio manager for USAA, Mr. Denbow was
responsible for managing over US$4 billion in three strategies; a domestic dividend and global dividend
strategy and the USAA Precious Metals and Minerals Fund. The USAA Precious Metals Fund received
numerous awards during his tenure.
Dan also serves as a director for the Denver Gold Group and is an
independent director of Gemdale Gold, a private company with exploration assets in Finland.
Dan is
also President of Denbow Oil &Gas.
Dan holds an MBA from Texas Christian University, Neeley School
of Business and is a CFA charter holder.
About Signature
The Lingman Lake gold property (the "Property") consists of 1,434 staked claims, four freehold fully
patented claims and 14 mineral rights patented claims totaling approximately 27,113 hectares. The
Property includes what has historically been referred to as the Lingman Lake Gold Mine, an underground
substructure consisting of a 126.5-metre shaft, and 3-levels at 46-metres, 84-metres and 122-metres
depths. There has been over 28,000 metres of historical drilling done on the Property.
To find out more about Signature Resources Ltd., visit our website at
www.signatureresources.ca
, or
contact:
Donna McLean
Chief Financial Officer
416.642.1807 x 307
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/144248