WEST KIRKLAND ANNOUNCES A NON-BROKERED PRIVATE PLACEMENT FOR $1,447,500 Drilling to Expand Resources and Phase-Two Hasbrouck Permitting to Continue
SUITE 788 – 550 BURRARD STREET, VANCOUVER, B.C. V6C 2B5 CANADA / TEL: 604-685-8311 / FAX: 604-484-4710
News Release No. 96-2017
August 03, 2017
Not for dissemination in the United States or to United States newswire services
WEST KIRKLAND ANNOUNCES A NON-BROKERED
PRIVATE PLACEMENT FOR $1,447,500
Drilling to Expand Resources and Phase-Two Hasbrouck Permitting to Continue
VANCOUVER, BRITISH COLUMBIA, August 3, 2017 – West Kirkland Mining Inc. (WKM:TSXV)
(“West Kirkland” or the “Company”) announces the execution of subscription agreements for a
non-brokered private placement of comm on shares of the Company with three of its major
shareholders for $1,447,500 at $0.075 per share (the “Private Placement”).
West Kirkland intends to expand its efforts from permitting and engineering on its gold reserves
to include exploration on its large Tonopah, Nevada land position. The initial permits to build and
operate the Three Hills open-pit heap leach operations are in hand and the second, larger pit and
leach pads at Hasbrouck are in the permit process. Adding open pit resources from exploration
to the initial permitted pits and leach pads would have an important, positive impact on the already
robust project.
Current Reserves are a Proven and Probable Mineral Reserve of 762,000 ounces of gold and
10.6 million ounces of silver. At a $ 1,225 gold price, a 2016 Pre-feasibility Study estimates a net
present value at a 5% discount rate of US$ 102 million and an IRR of 38%. West Kirkland owns
75% of the project and has improved its share of the economics by buying a 1.1% royalty on the
project. (Probable Reserves on a 100% basis are 41 million tonnes at 0.6 g/t gold, 8 g/t silver,
per Mine Development Associates’ Technical Report dated September 1, 2016, www.sedar.com).
The Company has agreed to issue 19,300,000 shares at a price of $0.075 per share for aggregate
gross proceeds of $1,447,500. There are no finder’s fees or commissions to be paid on the
Private Placement, which was arranged by management. Following the Private Placement, Sun
Valley Gold Master Fund, Ltd. and Ruffer LLP , on behalf of its clients, will hold approximately
33.71% and 16.99% respectively of the common shares of the Company. A third shareholder will
beneficially own approximately 9.9% of the common shares of the Company following the private
placement.
The Company intends to use the net proceeds of the Private Placement for general worki ng
capital, targeted resource expansion drilling, regional exploration, and phase two permitting on its
75% interest in the Hasbrouck Project in Nevada. Clover Nevada LLC, a wholly-owned subsidiary
of Waterton Precious Metals Fund II Cayman, LP, (“Waterton”), owns the remaining 25% interest
in the Hasbrouck Project. Waterton has been funding their 25% share of project expenditures
since September, 2016.
The shares sold in the above noted Private Placement will be subject to the approval of the TSX
Venture Exchange (“Exchange”) and will bear a four-month resale restriction from the date of
closing, which the Company anticipates will occur as soon as possible after Exchange approval.
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The securities offered pursuant to the Offerings have not been, and will not be, registered under
the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities
laws, and may not be offered or sold in the United States or to, or for the account or benefit of,
U.S. persons absent registration or any applicable exemption from the registration requirements
of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy securities in th e United States, nor
shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About West Kirkland Mining Inc.
West Kirkland owns a 75% interest in, and a 1.1% net smelter return royalty over the Hasbrouck
Gold Project in Tonopah, Nevada. A Pre-feasibility Study was completed and updated in 2016 for
two open-pit heap-leach mines comprising the Hasbrouck Gold Project. The Pre-feasibility Study
along with construction-level drawings and all federal and state permits for the phase-one Three
Hills Mine provides a ready-to-construct project. Permitting for the phase-two Hasbrouck Mine is
well advanced.
On behalf of West Kirkland Mining Inc.
“R. Michael Jones”
Chief Executive Officer
For further information, please see the Company’s website at www.wkmining.com or contact us
by email at [email protected].
Investor Relations:
Rob Bruggeman
(416) 884-3556 / [email protected]
Authors and Qualified Persons Statement
Sandy McVey, P.Eng., Chief Operating Officer for West Kirkland, and a non -independent
Qualified Person a s defined by NI 43-101, has reviewed the technical information contained in
this news release and has verified the relevant data. Quality Control and Assay information is as
previously disclosed in the Company’s technical reports.
Disclaimer for Forward-Looking Information
This press release contains forward -looking information or forward -looking statements
(collectively "forward -looking information") within the meaning of applicable securities laws.
Forward-looking information is typically identified by words such as: “believe”, “expect”,
“anticipate”, “intend”, “estimate”, “postulate” and similar expressions, or are those, which, by their
nature, refer to future events. Forward-looking information in this news release includes, without
limitation, the intended use of proceeds, the approval of the Exchange, closing date, the
statements regarding the ability to achieve the recoveries and the processing capacity of the
mines; regulatory processes and permitting; estimates of gold or other minerals grades;
anticipated costs, anticipated sales, project economics, the realization of expansion and
construction activities and the timing thereof; production estimates and other statements that are
not historical facts. Information concerning mineral resource/reserve estimates and the economic
analysis thereof contained in the prefeasibility study are also forward -looking statements in that
they reflect a prediction of the mineralization that would be encountered, and the results of mining
it, if a mineral deposit were developed and mined. Although West Kirkland believes that such
timing and expenses as set out in this press release are reasonable, it can give no assurance that
such expectations and estimates will prove to be correct. The Comp any cautions investors that
any forward-looking information provided by the Company is not a guarantee of future results or
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performance, and that actual results may differ materially from those in forward -looking
information as a result of various factors, including, but not limited to, the state of the financial
markets for the Company's equity securities, the state of the market for gold or other minerals that
may be produced generally, significant increases in any of the machinery, equipment or supplies
required to develop and operate a mine, a significant change in the availability or cost of the labor
force required to operate a mine, a significant increases in the cost of transportation for the
Company’s products, variations in the nature, quality and quantity of any mineral deposits that
may be located, the Company's ability to obtain any necessary permits, consents or authorizations
required for its activities, to raise the necessary capital or to be fully able to implement its business
strategies and other risks associated with the exploration and development of mineral properties.
The reader is referred to the Company's public filings for a more complete discussion of such risk
factors and their potential effects which may be accessed through the Co mpany's profile on
SEDAR at www.sedar.com.
Cautionary Note to U.S. Investors Regarding the Use of Mining Terms
This press release has been prepared in accordance with the securities laws in effect in Canada,
which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all
resources and reserve estimates included in this press release have been prepared in accordance
with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43 -101”) and
the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral
Resources and Mineral Reserves. NI 43 -101 is a rule developed by the Canadian Securities
Administrators which establishes standards for all public disclosure an issuer makes of scientific
and technical information concerning mineral projects. Canadian standards, including NI 43-101,
differ significantly from the requirements of the U.S. Securities and Exchange Commission (the
“SEC”) Industry Guide 7, and resource or reserve information contained herein may not be
comparable to similar information disclosed by U.S. companies. In particular, and without limiting
the generality of the foregoing, “resources” and “reserves” established under NI 43-101 standards
may not qualify as “resources” and “reserves” under U.S. standards. Under U.S. standards,
mineralization may not be classified as a “reserve” unless the determination has been made that
the mineralization could be economically and legally produced or extracted at the time the reserve
determination is made. In addition, under U.S. standards, a “Final” or “Bankable” feasibility study
is required to report reserves, the three -year historical average price is used in any reserve or
cash flow analysis to designate reserves and the primary environmental analysis or report must
be filed with the appropriate governmental authority. Disclosure of “con tained ounces” in a
resource is permitted disclosure under Canadian regulations; however, the SEC normally only
permits issuers to report mineralization that does not constitute “reserves” by SEC standards as
in-place tonnage and grade without reference to unit measures. Accordingly, information
concerning mineral deposits set forth in this press release may not be comparable with
information made public by companies that report in accordance with U.S. standards.
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.