Sky GOLD Financing Fully Subscribed Including Strategic Investment BY Eric Sprott
SKY GOLD FINANCING FULLY SUBSCRIBED
INCLUDING STRATEGIC INVESTMENT BY ERIC
SPROTT
Vancouver, British Columbia – July 13th, 2020 – Sky Gold Corp. (TSX-V: SKYG)
(US:SRKZF) ("Sky Gold Corp." or the “Company”) is pleased to announce that
it has fully subscribed its previously announced private placement (see news
release dated July 10, 2020).
Mr. Eric Sprott is expected to participate in the Offering in an amount
equivalent to provide a 19.9%, non -diluted, ownership interest in the issued
and outstanding common shares of Sky Gold Corp. Assuming the Offering is
fully subscri bed, and there is no over -allotment, Mr. Sprott’s subscription is
expected to be C$1,050,000 or 10,500,000 Units, representing approximately
52.5% of the Offering.
The financing comprises 20 million units at a price of 10 cents per unit for
aggregate gros s proceeds of $2 -million, with each unit consisting of one
common share and one -half of one transferable common share purchase
warrant of the company entitling the subscriber to purchase one warrant
share for a 24 -month period after the closing date at an exercise price of 15
cents per share.
“Sky Gold’s Newfoundland projects are adjacent to what is about to become a
hotbed of activity this summer as our very well financed neighbour, New
Found Gold Corp., prepares to drill a projected 100,000 meters over t he next
year. We look forward to exploring and drilling on our own properties in this
up and coming, prolific gold camp.” commented Mike England, CEO of Sky
Gold Corp.
Sky Gold's Newfoundland portfolio consists of two properties in Central
Newfoundland: t he recently expanded Mustang property and the Virginia
property, contiguous to the south -western and north -eastern portions,
respectively, of the Queensway Gold Project owned by New Found Gold Corp.
The enlarged Mustang Expansion property comprises 1,875 h a with
exploration activities to be conducted with local Gander -based crews that are
ready to mobilize. Initial work, leading up to an inaugural drill program
expected to commence later this summer, will include prospecting,
geological mapping, rock outcro p and subcrop sampling and hand
trenching. Work permits have just been received for the Virginia property, and
permits for Mustang are expected to be approved.
The eastern portion of the Mustang property hosts the well -documented
Outflow prospect discovere d by Noranda Exploration Company Ltd., later
drilled by Altius Resources (with Barrick Gold) in the late 1990’s and early
2000’s, and investigated by a Newfoundland government geologist (C.G.
Squires, 2005) and a 2006 Master Thesis (J.M. O’Driscoll). High est gold values,
up to 28 grams per tonne gold (g/t Au) over 0.8 metres, occur in dark grey
hydrobreccia units associated with elevated arsenopyrite concentrations.
Select diamond drill assay results from Noranda's drill program include 1.27 g/t
Au over 11.3 m, 0.67 g/t Au over 18.3 m and 0.92 g/t Au over 9.0 m.*
The Virginia property hosts the Virginia Holdings prospect, located
approximately 0.6 kilometres north of the Gander River. The prospect consists
of quartz veining developed over a 35 metre wide zone within sheared gabbro
and graphitic shale (main shear). A second shear zone , hosted in gabbro , is
developed 35 metres north of the main shear. Grab samples* collected from
the main shear reportedly assayed up to nine grams per tonne gold and up to
109.6 grams per tonne gold from the sheared gabbro (refer to Company Press
Release, February 11, 2020).
*Gold values on adjacent properties in similar rocks and assays based on historic al work are
not representative of mineralization on the property, have not been verified and should not
be relied upon. Gold samples from grab samples may not represent a representative grade
of the mineralization.
Qualified Person
Catherine Fitzgerald, P.Geo., a Qualified Person under National Instrument 43-
101, is the Qualified Person responsible for reviewing and approving the
technical contents of this news release as they pertain to the Newfoundland
properties.
About Sky Gold Corp.
Sky Gold Corp. is a junior mineral exploration company engaged in acquiring
and advancing mineral properties in Canada and the USA. In addition to the
Company’s Newfoundland properties, the Company also owns the Evening
Star property, located 12 km so utheast of Hawthorne, NV, USA, which is
prospective for gold mineralization and CRD (Carbonate Replacement
Deposit) base and precious (silver and gold) mineralization.
ON BEHALF OF THE BOARD
“Mike England”
______________________
Mike England, CEO & Director
FOR FURTHER INFORMATION PLEASE CONTACT US:
Tel: 1-604-683-3995
Toll Free: 1-888-945-4770
Neither the 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.
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which
relate to future events or future performance and reflect management’s current expectations and
assumptions. Such forward-looking statements reflect manag ement’s current b eliefs and are
based on assumptions made by and information currently available to the Company. Investors are
cautioned that these forward-looking statements are neither promises nor guarantees and are
subject to risks and uncertainties that may cause future results to differ materially from those
expected. These forward -looking statements a re made as of the date hereof and, except as
required under applicable securities legislation, the Company does not assume any obligation to
update or revise them to reflect new events or circumstances. All forward-looking statements made
in this press release are qualified by these cautionary statements and by those made in our filings
with SEDAR in Canada (available at WWW.SEDAR.COM).