Wolfden Arranges $2.5M Strategic Partner Financing with Kinross Gold Corporation
Wolfden Arranges $2.5M Strategic Partner
Financing with Kinross Gold Corporation
THUNDER BAY, ON
,
March 19, 2019
/CNW/ -
Wolfden Resources Corporation
(WLF.V)
("
Wolfden
" or the "
Company
") is pleased announce that it has entered into a subscription
agreement with Kinross Gold Corporation ("
Kinross
") for a non-brokered private placement of
12,500,000 common shares of the Company ("
Common Shares
") at a price of
C$0.20
per
Common Share for gross proceeds of
C$2,500,000
(the "
Offering
"). Upon closing,
Kinross
shall
hold approximately 9.7% of the issued and outstanding shares of the Company.
The majority of the proceeds from the Offering will be used to explore the Company's 100%-owned
Pickett Mountain high-grade polymetallic deposit in North-eastern
Maine
, USA. As part of the terms
of the subscription agreement, the Company and
Kinross
have agreed to work together in the form
of an exploration committee.
"We are very pleased to have
Kinross
as a significant investor and a strategic partner in our efforts
to expand the current mineral resources, search for additional deposits and provide additional insight
and expertise with respect to our next technical studies and permitting at Pickett Mountain," said
Ron
Little
, President and CEO for the Company. The Company has been working recently to update the
metallurgical studies and expects to resume its expansion and exploration drill program as soon as
logistics permit. This will include follow-up of the recently discovered footwall zone in a drill hole that
intersected
4.1 m
of 38.2% ZnEq (incl. 612 g/t Ag and 0.5 g/t Au) and one of the last deeper holes
that hit
19.5 m
of 33.1% ZnEq (incl. 269 g/t Ag and 1.1 g/t Au) see press release dated
January 15, 2019
.
The Offering is expected to close on or about
March 29
th
, 2019 and no later than
May 1, 2019
and
is subject to TSX Venture Exchange approval. The securities to be issued pursuant to the Offering
will be subject to a four-month hold period under applicable Canadian securities laws.
About Wolfden
Wolfden is a Canadian exploration and development company primarily focused on advancing its
100%-owned
Pickett Mountain Project
in
Maine, USA
. The 6,800 acre Project is host to a high-
grade (Zn, Pb, Cu, Ag, Au) zinc-rich, volcanogenic massive sulphide deposit that is close to excellent
infrastructure and includes the land and all rights to minerals and timber, without any historic or
aboriginal encumbrances. With a mineral resource of 2.05 Mt at 19.3% ZnEq of indicated resources
and 2.03 Mt at 20.6% ZnEq of inferred resources, the Company plans to expand resources with
further drilling and complete sufficient exploration, definition drilling and various technical studies in
order to demonstrate the economic potential for an underground mining scenario on the Project. For
further information on the project, see technical report entitled "
National Instrument 43-101
Technical Report, Pickett Mountain Project Resource Estimation Report,
Penobscot County, Maine
,
USA
" dated
January 7
, 2019.
The information in this news release has been prepared, reviewed and approved by
Don Hoy
,
P.Geo., SVP Exploration and
Ron Little P.Eng
., President and CEO, who are Qualified Persons'
under National Instrument 43-101.
This press release contains forward-looking information (within the meaning of applicable
Canadian securities legislation) that involves various risks and uncertainties regarding future
events. Such forward-looking information includes statements based on current expectations
involving a number of risks and uncertainties and such forward-looking statements are not
guarantees of future performance of the Company, and include, without limitation, statements
relating to
information about future activities at the Pickett Mountain Project that include plans to
expand resources with further drilling and complete sufficient exploration, definition drilling and
various technical studies in order to demonstrate the economic potential for an underground
mining scenario on the Project
. There are numerous risks and uncertainties that could cause
actual results and the Company's plans and objectives to differ materially from those expressed in
the forward-looking information in this news release, including without limitation, the following risks
and uncertainties: (i) risks inherent in the mining industry; (ii) regulatory and environmental risks;
(iii) results of exploration activities and development of mineral properties; (iv) risks relating to the
estimation of mineral resources; (v) stock market volatility and capital market fluctuations; and (vi)
general market and industry conditions. Actual results and future events could differ materially
from those anticipated in such information. This forward-looking information is based on estimates
and opinions of management on the date hereof and is expressly qualified by this notice. Risks
and uncertainties about the Company's business are more fully discussed in the Company's
disclosure materials filed with the securities regulatory authorities in
Canada
at
www.sedar.com
.
The Company assumes no obligation to update any forward looking information or to update the
reasons why actual results could differ from such information unless required by applicable law.
Neither 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.
SOURCE
Wolfden Resources Corporation
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/March2019/19/c7599.html
%SEDAR: 00033002E
For further information:
please contact Ron Little, President & CEO, at (613) 862-3699
CO: Wolfden Resources Corporation
CNW 06:00e 19-MAR-19