TORONTO, March 26, 2019 (GLOBE NEWSWIRE) -- Stratabound Minerals Corp. (SB.V) (“Stratabound” or “the Company”) is pleased to announce its summer 2019 exploration program at the highly prospective Golden Culvert property, in the southeast Yukon Territory.
The objective of the 2019 program will be to confirm gold grade continuity and target potential sufficient for preparation of a maiden inferred resource estimate by early 2020.
Building on the successful 2018 exploration campaign, the Company plans in 2019 to complete a total of 2,000 metres of diamond drilling to extend the area of drilling from the current 450 metres to at least one kilometre of the 24-kilometre strike length at Golden Culvert. The drill program includes 800 metres of extension drilling and 1,200 metres of infill drilling over 1 km of strike length, including drilling of new targets within the previously defined open-ended 3 km long gold-arsenic soil anomaly. Additional exploration of the remainder of the 84 sq. km of claims is anticipated to increase the number of priority targets along the remaining 23 km of project length through drone (UAV) high definition air photo, topographic and magnetic surveys, followed up with surface prospecting and mapping of the high priority drone survey zones.
To fund the 2019 Golden Culvert exploration program, the Company plans to complete a share consolidation and private placements. A share consolidation on the basis of one new common share for six current common shares has been approved by the Board of Directors and several major shareholders, to be approved by shareholders at the Company’s annual meeting scheduled for May 10, 2019 and completed as soon as possible thereafter. As a result of the share consolidation, the Company’s outstanding shares will be reduced from 210,223,178 shares to a new total of approximately 35 million shares. The share consolidation is being completed as a result of the poor market conditions for junior mining stocks and the drop in share price below levels allowed by the TSX Venture Exchange for private placements. This is despite last year’s exploration success at Golden Culvert.
The Company is also pleased to announce on a best efforts basis two private placement offerings for a total of up to $1,500,000 to be completed subsequent to the share consolidation. A $500,000 non-brokered private placement of hard dollar units (the “Unit Private Placement”) will consist of up to 5,000,000 units at a post-consolidation price of $0.10 per unit. Each unit will consist of one common share in the capital of the Company and one common share purchase warrant. Each warrant will entitle the holder to purchase one share of the Company for a period of 24 months from the closing of the offering at a post-consolidation exercise price of $0.15 per share. Additionally, the Company proposes to raise up to $1,000,000 through a non-brokered flow-through private placement (the “Flow-Through Private Placement”) of up to 8,333,333 flow-through units at a post-consolidation price of $0.12 per flow-through unit. Each flow-through unit will consist of one common share in the capital of the Company issued on a flow-through basis and one-half of one common share purchase warrant. Each full warrant will entitle the holder to purchase one share of the Company for a period of 24 months from the closing of the offering at a post-consolidation exercise price of $0.15 per share.
The proceeds of the private placements will be used to fund the summer 2019 exploration program at the Golden Culvert property, for other payments directly related to the property and for working capital. Completion of the share consolidation and the private placement offerings remains subject to acceptance by the TSX Venture Exchange. All securities issued pursuant to the private placements are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. Finder’s fees may be payable to qualified parties.
Stratabound President and CEO R. Kim Tyler commented, “We have had significant success with our initial drilling at Golden Culvert in 2018, and we are optimistic that our planned 2019 program will progress the project to the point where we will be able to publish a maiden resource estimate. The market for financing of exploration by junior mining companies is currently very distressed, but we are extremely confident that the Golden Culvert project exploration will generate results worthy of the investment.”
About the Golden Culvert and Little Hyland Properties
Golden Culvert and Little Hyland cover 83.8 square kilometres in the southeast Yukon Territory across a 24-kilometre strike located approximately 20 kilometres northeast of and parallel to Golden Predator Mining Corp.’s 3 Aces property. Past work has outlined a northerly trending, 3 kilometre by 250 metre, +30 ppb Au up to 791 ppb Au gold-in-soil anomaly that remains open at both ends. During 2018 samples were taken and assayed from six trenches and eight drill holes (1,355 metres of diamond drilling). Significant results from 2018 drilling include 60.1 gpt Au over 0.9m within 2.53 gpt Au over 33.1 metres. Stratabound’s summer 2019 program includes 2,000 metres of diamond drilling to further explore the highly mineralized areas of the property.
Stratabound Minerals Corp. is a Canadian exploration and development company focused on the Yukon Territory. The Company also holds a significant land position that hosts three base metals deposits in the Bathurst base metals camp of New Brunswick featuring the Captain Copper-Cobalt Deposit that hosts an NI 43-101 compliant Measured+Indicated resource.
Stratabound management has a diversified track record of exploration, development and operating successes that will facilitate the development of the Company’s exploration projects.
Mr. R. Kim Tyler, P.Geo., President and CEO of Stratabound, and a “Qualified Person” for the purpose of NI 43-101, was responsible for managing and supervising the exploration program and has verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in this disclosure. Mr. Tyler has reviewed and approved the contents of this news release.
For further information, please see the Golden Culvert presentation and the NI 43-101 technical report on the Stratabound web site, www.stratabound.com.
For further information contact:
R. Kim Tyler, President and CEO
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.
WARNING: The Company relies upon litigation protection for “forward looking” statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, failure to obtain regulatory, exchange or shareholder approval, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.