Viscount Mining Press Release 1 of 4 Viscount Mining Announces Closing of Over Subscribed Non - Brokered Private Placement
Viscount Mining Press Release 1 of 4
Viscount Mining Announces Closing of Over Subscribed
Non - Brokered Private Placement
Vancouver, British Columbia - (July 29, 2020) - Viscount Mining Corp. (TSX-V: VML) ( OTCQB: VLMGF)
("Viscount Mining") is pleased to announce it has closed its non -brokered private placement (the “Private
Placement”) with the assistance of IBK Capital Corp announced by news release dated July 23, 2020. The private
placement was originally announced for total gross proceeds of up to $4,000,000 however Viscount filed a price
reservation form to increase the size of the Private Placement to total gross proceeds of $5,000,000 with and as
sought approval for an over-allotment of 15% for a total of $5,750,000.
The closing comprises 23,958,332 units of the Company (each a “ Unit”) at a price of $0.24 per Unit. Each Unit
consists of one common share of the Company (a “ Share”) and one transferrable Share purchase warrant (a
“Warrant”). Each Warrant will entitle the holder thereof to acquire one additional Share at a price of $0.32 for
term of 2 years following closing, being July 29, 2022 (the “Expiry Date”).
Net proceeds from the Offering, are expected to be used for the exploration and development of t he Viscount
Mining mineral property interests and ongoing working capital requirements.
In connection with the closing the Company will pay cash commissions of $343,610 and issue 1,426,964 finder’s
warrants pursuant to and in accordance with applicable securities laws and Exchange policy. The finder’s warrants
have the same terms as the Warrants.
The transaction constituted a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI
61-101”) as a policy of the TSX Venture Exchange , there were directors and insiders of the Company that
participated and together subscribed for an aggregate of 1,096,958 Units pursuant to the Offering. The Company
is relying on the exemptions from the valuation and minority shareholder approval require ments of MI 61 -101
contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Offering
by the insider does not exceed 25% of the market capitalization of the Company, as determined in accordance with
MI 61-101.
The Offering is subject to TSX Venture Exchange approval. There will be a hold period of four months and one
day on all securities issued under this financing.
Viscount is in the final planning stages of preparing for a drill program beginning in A ugust at Silver Cliff,
Colorado, where we have an open pit resource which we expect to expand.
The Silver Cliff project consists of 96 contiguous patented and unpatented lode claims encompassing
approximately 900 hectares in the Hardscrabble Silver District, Custer County, south-central Colorado. The project
lies immediately north of the town of Silver Cliff and Westcliffe and is 50 kilometers south of Canon City, 88
kilometers west-southwest of Pueblo and 225 kilometers south of Denver.
• The Kate Silver Resource (the “KSR” ) has been extensively drilled since the 1960’s, and is one of four
known historic silver deposits on the Silver Cliff property. The KSR underlies approximately 36 hectares
or 4% of the 900 hectares at Silver Cliff which Viscount controls.
Viscount Mining Press Release 2 of 4
• The initial KSR silver resource estimate for Viscount was prepared in April 2018 by Gilles Arseneau,
Ph.D., P. Geo., of Arseneau Consulting Services (“ACS”) in accordance with CIM standards incorporated
by reference in National Instrument 43-101 (“NI 43-101”) using results from 19 cored HQ holes drilled
in two phases in 2016 and 2017 plus results from historic holes verified by the 2016- 17 programs as
assessed by ACS.
Many of the historic holes had been drilled for Tenneco Minerals at the KSR between 1987 and 1990, following
which the company completed a feasibility study for open pit mining of silver and announced plans to construct
a $35,000,000 milling operation at Silver Cliff. Shortly thereafter, the parent company, Tenneco was sold and
the new owners decided to divest their mineral interests and the decision was reversed in 1991.
Of Viscount’s two drilling campaigns on the KSR/Kate deposit, nine holes totalling 455.2 metres were drilled
in 2016 and ten additional holes totalling 912.1 metres were drilled in October of 2017. The drilling programs
were primarily aimed at verifying the historical drill results. The best intersections from the 2016 and 2017
drilling according to ACS are:
Hole # From
(m)
To
(m)
Interval
(m)
Ag
(g/t)
K16-01
Including
Including
18.29
18.29
24.38
32.00
24.38
28.04
13.71
6.09
3.66
924.0
1,768.0
427.0
K16-03
Including
17.37
24.99
34.14
34.14
16.76
9.14
141.5
241.5
K16-04
Including
18.59
27.74
36.88
35.36
18.29
7.62
204.0
380.0
K16-05
including
19.81
25.91
33.53
32.00
13.72
6.09
390.6
762.0
K16-08
Including
32.00
39.62
52.73
50.29
20.73
10.67
230.0
403.0
K17-02
including
1.50
12.00
34.50
30.00
33.00
18.00
93.0
120.5
K17-04
Including
18.00
22.50
39.00
34.50
21.00
12.00
121.7
180.8
K17-05
including
9.50
11.00
24.50
18.50
15.00
7.50
279.6
477.0
Effective April 15 2018, ACS estimated that the Kate deposit contained 2,064,000 tonnes of Indicated Mineral
Resource averaging 84 g/t of silver for 5,560,000 ounces of silver and 3,172,000 tonnes of Inferred Mineral
Resource averaging 70 g/t of silver for 7,143,900 ounces of silver.
classification tonnes grade Ag (g/t) ounces silver
Indicated 2,064,000 84 5,560,900
Inferred 3,172,000 70 7,143,900
Viscount Mining Press Release 3 of 4
(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
(2) The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues.
(3) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated
Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred
Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
(4) The Mineral Resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by the CIM Council.
Mineral Resources were estimated by ordinary kriging using Geovia GEMs Version 6.8.1 modelling software into
10 by 10 by 5 m blocks. All mineralized blocks were assigned a 2.36 t/m3bulk density. ACS considers that blocks
estimated during pass one and from at least 4 drill holes could be assigned to the Indicated category.
Viscount will be continuing to drill with the objective of adding to the ACS resource estimate of the KSR/Kate
deposit as well as moving forward on the evaluation of resource potential on 3 other areas of historic deposits at
Silver Cliff.
Qualified Persons
The scientific and technical information contained in this news release has been reviewed and approved by Harald
Hoegberg PG, an independent consulting geologist who is a "Qualified Person" (QP) as such term is defined under
National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
About Viscount Mining (TSX VENTURE: VML) (OTCQB: VLMGF)
Viscount Mining is a project generator and an exploration company with a portfolio of silver and gold properties
in the Western United States, including Silver Cliff in Colorado and Cherry Creek in Nevada.
The Silver Cliff property in Colorado lies within the hist oric Hardscrabble Silver District in the Wet Mountain
Valley, Custer County, south -central Colorado. It is located 44 miles WSW of Pueblo, Colorado, and has year -
around access by paved road. The property consists of 2,319.48 hectares where high grade silver, gold and base
metal production came from numerous mines during the period 1878 to the early 1900’s. The property underwent
substantial exploration between 1967 and 1984.
The property is interpreted to encompass a portion of a large caldera and highl y altered sequence of tertiary
rhyolitic flows and fragmental units which offers potential to host deposits with both precious and base metals.
This has been demonstrated in the mineralization historically extracted from the numerous underground and
surface mining operations. Drilling in the 1980s by Tenneco resulted in a historical pre-feasibility study on which
basis it was planned to bring the property to production. The plan was abandoned following a takeover by another
company.
The Cherry Creek exploration property is in an area commonly known as the Cherry Creek Mining District, located
approximately 50 miles north of the town of Ely, White Pine County, Nevada. Cherry Creek consists of 293
unpatented and patented claims as well as mill rights and is comprised of more than 2,442 hectares. Cherry Creek
includes more than 20 past producing mines.
Viscount Mining Press Release 4 of 4
For additional information regarding the above noted property and other corporate information, please
visit the Company's website at www.viscountmining.com
ON BEHALF OF THE BOARD OF DIRECTORS
“Jim MacKenzie”
President, CEO and Director
For further information, please contact:
Viscount Investor Relations
Email: [email protected]
FORWARD-LOOKING STATEMENTS
This news release includes certain statements that may be deemed “ forward-looking statements ” within the meaning of
applicable Canadian securities legislation. Forward- looking statements include, but are not limited to, statements with
respect to Viscount Mining’s operations, exploration and development plans, expansion plans, estimates, expectations,
forecasts, objectives, predictions and projections of the future. Specifically, this news release contains forward looking
statements with respect to the Offe ring, the receipt of required approvals, the timing of thereof and the amount and use of
proceeds therefrom. Generally, forward- looking statements can be identified by the forward- looking terminology such as
“plans”, “expects” or “does not expect ”, “is exp ected”, “budget”, “scheduled”, “estimates”, “projects”, “intends”,
“anticipates”, or “does not anticipate”, or “believes”, or “variations of such words and phrases or state that certain actions,
events or results “may”, “can”, “ could”, “would”, “might”, or “ will” be taken”, “occur” or “be achieved”. Forward-
looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Viscount Mining to be materially different from those expressed or implied
by such forward- looking statements, including but not limited to: risks related to the exploration and development and
operation of Viscount Mining ’s projects, the actual results of current explor ation, development activities, conclusions of
economic evaluations, changes in project parameters as plans continue to be refined, future precious metals prices, as well
as those factors discussed in the sections relating to risk factors of our business filed in Viscount Mining’s required securities
filings on SEDAR. Although Viscount Mining has attempted to identify important factors that could cause results to differ
materially from those contained in forward-looking statements, there may be other factors that cause results to be materially
different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements will prove accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-
looking statements. Viscount Mining does not undertake to update any forward- looking statements that are incorporated by
reference herein, except in accordance with applicable securities laws.
THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS
PRESS RELEASE. NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLIC IES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY
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