Aurcrest Gold arranges $3-million financing
2016-09-07 12:43 ET - News Release
Mr. Ian Brodie-Brown reports
AURCREST GOLD ANNOUNCES FINANCING
Aurcrest Gold Inc. intends to raise $3-million through the capital markets to finance continued exploration of its promising Richardson Lake gold discovery. The company believes that market conditions and recent financing activity indicate a strong market for precious metals exploration is emerging after an eight-year downturn, starting in 2008 and marking one of the longest resources down cycles. The Richardson Lake gold project merits a strong second-phase drill program of 10 to 12 holes to begin delineating the very good results discovered through limited drilling during the market lows.
Aurcrest continues to develop its first nations partnership and inclusion strategy, and some working capital will be used for continued consulting and business development with local parties. Aurcrest, through Lac Seul Band member and executive vice-president Christopher Angeconeb, will continue to develop the long-term goal of assisting communities with their pressing energy needs, as defined in earlier press releases, as energy and the need for modern clean energy is believed by Aurcrest to be the single-most pressing issue facing the Northern Ontario Anishinaabe peoples and the most critical component of resource development in Ontario's far north.
The company is in the business of mineral exploration, with a first-class gold exploration prospect, in the region of one the world's most prolific gold camps. Aurcrest is happy to be able to get back to the business of exploration, but will take seriously the social, cultural and business responsibilities it has undertaken by exploring in the traditional territories of the Cat Lake, Slate Falls and Lac Seul communities.
To this end, the company wishes to announce a financing of up to $1.5-million in working capital at a price of five cents with a half warrant at 10 cents for a term of 24 months (the working capital units) and a further $1.5-million in flow-through funds at a price of six cents with a half warrant at 12 cents for a term of 18 months (the flow-through units).
Eligible finders may receive up to 8 per cent cash and 8 per cent of the number of flow-through units or working capital units sold in the form of broker warrants. Each broker warrant entitles the holder to acquire a common share of the company at five cents for 24 months from closing.
All proceeds will be used for exploration, business development and working capital.
All securities issued pursuant to the above-referenced financing are subject to a statutory four-month hold period and regulatory approval.
About Aurcrest Gold
Aurcrest is a mineral exploration company focused on the acquisition, exploration and development of gold properties. Aurcrest has a portfolio of properties in Ontario, which includes the Richardson Lake and Bridget Lake gold properties.
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