TORONTO, July 30, 2019 (GLOBE NEWSWIRE) -- Stratabound Minerals Corp. (SB.V) (“Stratabound” or “the Company”) is pleased to announce the closing of two private placement offerings for a total of $251,200 and to provide an update on its summer 2019 exploration program at the Golden Culvert gold project in the southeast Yukon Territory.
The Private Placements
A $142,200 non-brokered private placement of units (the “Unit Private Placement”) of 1,777,500 units at a price of $0.08 per unit was closed with five subscribers. Each unit consisted of one common share in the capital of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one share of the Company for a period of 24 months from the closing at an exercise price of $0.10 per share. Additionally, the Company closed $109,000 in a non-brokered flow-through private placement (the “Flow-Through Private Placement”) of 1,211,111 flow-through units at a price of $0.09 per flow-through unit. Each flow-through unit consisted of one common share in the capital of the Company issued on a flow-through basis and one common share purchase warrant. Each warrant entitles the holder to purchase one share of the Company for a period of 12 months from the closing of the offering at an exercise price of $0.12 per share.
The current number of issued and outstanding securities after closing of these financings is 38,025,698 shares.
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. 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. The Company paid Finder’s fees of $7,630 in cash and issued 84,777 finder’s warrants, each finder’s warrant exercisable at $0.09 for 18 months from the date of issue, in relation to the flow-through private placement.
Yukon 2019 Exploration Program
The Company is very pleased to announce that the 2019 exploration program has started. Building on the successful 2018 exploration campaign, the Company is currently completing a first phase program of road building and trenching. The Company plans to double the current 500 metres to 1,000 metres of direct road access along strike of the 25m-50m wide Golden Culvert gold mineralized structural corridor. The field team and contractor mobilized to site and work commenced July 15th. The previously announced 2019 exploration work program has been modified to commence with in-fill trenching between the 2018 trenches and extend open-ended mineralization remaining in the 2018 trenching to firm up confidence in last year’s results. New trenches will also be built to expose the two main gold-bearing structures with 20 trenches at approximately 50m intervals extending the 430 metre strike length exposed in 2018 out to at least 1 kilometre of strike length. The diamond drilling previously planned will be deferred pending completion of the trenching program and improved market conditions for funding. Prospecting, rock geochemistry and geological mapping are also planned to extend up to 3 kilometres of strike to follow up on the 3km long +30 ppb gold in soil anomaly surrounding the work completed last year. The objective of the 2019 program will be to confirm gold grade continuity and target potential in preparation towards a maiden inferred resource estimate.
Investor Relations Consultant
The Company is also pleased to announce that it has engaged Toronto investor relations group, FronTier Flex Marketing, to provide investor relations and promotional consulting services to the Company. Under the terms of the agreement, FronTier Flex has been retained for a one-year period for C$90,000. The company has also granted an option to purchase 300,000 shares to FronTier Flex at an exercise price of US$0.10, which expires five years from the date of grant.
FronTier Flex will provide a range of services, including communication and marketing initiatives. This will include facilitating in-person introductions with institutional and retail brokers and other financial representatives, and media distribution on national television, radio and online channels.
The Company also wishes to announce the granting of a total of 2,000,000 stock options to officers and directors of Stratabound. The option grants are for a five-year term at an exercise price of $0.10 per share.
Stratabound President and CEO R. Kim Tyler commented, “We are pleased to have completed the funding and are now financed to complete our 2019 program of trenching and rock geochemistry at Golden Culvert. Trenching has been selected first as it provides excellent information much more cost effectively than diamond drilling. The information derived will better guide future diamond drilling programs. As additional funds become available we will endeavour to conduct additional diamond drilling to further delineate the vein structure at the property. We remain optimistic that our planned 2019 program will build upon last year’s success. We are delighted to bring FronTier Flex on board to help promote the Company and increase awareness of the Golden Culvert project in the financial marketplace.”
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 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.