Boucherville, Québec-based mining company Kintavar Exploration Inc (TSX-V: KTR) has raised an initial $2.5 million of a proposed $15 million private placement deal. Caisse de dépôt et placement du Québec invested in the first tranche, the company said. Kintavar, which explores and develops precious metals and base metals properties in Québec, said the proceeds will be used for an upcoming drilling program at its Mitchi copper project located in the Laurentian region. It will also use the proceeds for working capital purposes.
Kintavar Announces First Closing of $2.5M of Up to $15M Private Placement with Participation of the Caisse de Dépôt et Placement du Québec
MONTREAL, April 09, 2018 (GLOBE NEWSWIRE) — Kintavar Exploration Inc. (the “Corporation” or “Kintavar”) (TSX-V:KTR) (FRANKFURT:58V), is pleased to announce that it has closed the first tranche of 6,250,000 units (each a “Unit”) of a non-brokered private placement (the “Offering”) for gross proceeds of $2,500,000. This tranche is part of a total Offering of up to 28,750,000 Units at a price of $0.40 per Unit and 6,574,074 common shares of the Corporation issued on a flow through basis, at a price of $0.54 per share for total aggregate gross proceeds of up to $15,000,000. Each Unit is comprised of one (1) common share (each a “Share”) and one half of one (1/2) Share purchase warrant, with each whole warrant entitling the holder to acquire one (1) Share of the Corporation at a price of $0.70 per Share until April 6, 2020. The Caisse de Dépôt et Placement du Québec (“CDPQ”) has participated in this financing.
The Company anticipates closing of the final tranche of the Offering on or about April 30, 2018.
The Corporation will use the proceeds of the Offering for the upcoming drilling program on the Mitchi property and for working capital purposes.
All securities issued pursuant to the Offering are subject to the applicable statutory four month hold period.
“It is with great pleasure that we welcome the Caisse de Dépôt et Placement du Québec as a significant shareholder in Kintavar. The company’s recent discovery of stratiform copper mineralization at the Mitchi project in the Grenville geological province, has opened up new opportunities for the mining industry in the Laurentian region. We are excited to be moving on to the next stage of exploration on the Mitchi project. With this financing, we are targeting to complete up to 30,000 meters of diamond drilling over the next 12 to 18 months including drilling on each of the three favorable sedimentary corridors: Sherlock, Nasigon and Hispana. Each corridor presents by itself as a large target area of potential copper mineralization and needs to be looked at individually from an exploration point of view. Since all three corridors are located less than 20 km apart and share excellent infrastructure such as roads, accommodation and a high voltage power line, in the event of the discovery of an economic copper deposit (s), the three target areas could be developed and then processed at the same central location. We believe the Mitchi project region has the potential to become an important copper region in Quebec. Over the next year we expect to have a better definition of the mineralization at each one of the corridors, we will complete initial metallurgical studies on potential extraction of the copper mineralization and begin focusing on the initial resource estimate for the project.” comments Kiril Mugerman, President & CEO of Kintavar.
About the Mitchi Property
The Mitchi property (approx. 28,000 hectares, 100% owned) is located west of the Mitchinamecus reservoir, 100 km north of the town of Mont-Laurier. The property covers an area of more than 280 km2 accessible by a network of logging and gravel roads with a hydro-electric power substation located 14 km to the east. The property is located in the north-western portion of the central metasedimentary belt of the Grenville geological province. Many gold, copper, silver and/or manganese mineralized showings have been identified to date, with many characteristics suggesting of a sediment-hosted stratiform copper type deposit (SSC) in the Eastern portion of the property and Iron Oxide Copper Gold ore (IOCG) and skarn type deposits in the Western portion. Osisko holds a 2% NSR on 27 claims of the southern portion of the Mitchi property, outside of the sedimentary basin and a 1% NSR on 21 claims partially on in the sedimentary basin.
For further information contact:
President and CEO
Telephone: +1 450 641 5119 #5653
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