Enduro Metals Announces 2020 Diamond Drilling Program Underway at Newmont Lake
Enduro Metals Corporation (TSXV: ENDR) (OTC PINK: SIOCF) (FSE: SOG) (“Enduro” or the “Company“) is pleased to announce that’s it’s field crews mobilized to the Company’s Newmont Lake Project in northwestern BC’s Golden Triangle on July 28th, 2020.
Diamond Drilling – McLymont Fault
Exploration diamond drilling is underway which includes an initial 6,000 metres of diamond drilling designed to test several new high-grade gold targets along the McLymont Fault, as well as continuing systematic step-outs at the recently discovered NE Extension where last season’s diamond drill hole NW19-012 yielded 188m of 1.10 g/t Au, 1.15 g/t Ag, and 0.09% Cu including 44.03m of 4.03 g/t Au, 4.06 g/t Ag, and 0.29% Cu.
Crews have also begun induced polarization (“IP”) geophysics, hyperspectral, and geochemical surveys in conjunction with detailed lithological/alteration mapping at various locations along the McLymont Fault. These surveys are designed to collect information ahead of step-out diamond drilling over the 1,500 metres long area of interest to test the current geological theory that the NW Zone and Goldfish may be linked.
Furthermore, as part of on-going technical studies, follow-up work is underway at three other areas of interest including Ken, Cuba, and the Chachi Corridor. More developments on these areas are to follow as the information becomes available.
Ken Zone
The Ken Zone located 3km north of the NW Zone was first identified by Newmont Mining in 1961 to be prospective for high-grade gold and copper. Recent surface sampling in 2018 by Romios Gold includes a chip sample of 4.0m of 11.22 g/t Au, 4.12% Cu, and 43.54 g/t Ag. No drilling has been completed at this target to date. Enduro is currently investigating possible relationships between the Ken Zone and McLymont Fault gold mineralization 3km to the south.
Cuba
Cuba is a series of polymetallic, high-grade silver, zinc, copper, and lead occurrences all associated with the >30km long McGillivray Fault, which is the east-bounding structure to the Newmont Lake Graben dominating the centre of the Newmont Lake Project. There is virtually no historic drilling along the >30km trend except for two diamond drill holes drilled by a prospector in 1988 that totaled just 133 metres. Surface rock samples taken by Enduro in 2019 include grades as high as 2,350 g/t Ag, 15.20% Zn, 1.30% Cu, and 0.59% Pb as well as 2,338 g/t Ag, 12.90% Zn, 1.60% Cu, and 0.16% Pb. Chip channel sampling at another outcrop along the trend in 2019 returned 2.4 metres of 1,071 g/t Ag, 9.30% Zn, 0.37% Cu, and 2.0% Pb as well as 4.8m of 728 g/t Ag, 7.70% Zn, 0.19% Cu, and 6.2% Pb. None of the prospective areas identified by Enduro at Cuba have been drilled to date.
Chachi Corridor
The Chachi Corridor is a new surface discovery made by Enduro in 2019. The corridor consists of a 9km x 4km geochemically anomalous area where high-grade copper, gold, silver, zinc, nickel, and cobalt were all discovered in 2019. The area also hosts a >3km long chargeable geophysical conductor immediately within the footwall of the McGillivray Fault. Current work is modelling the potential correlations of multiple polymetallic centres that have been identified on surface with the various geophysical anomalies.
Cole Evans, President/CEO of Enduro commented, “Now that the Company has a strong financial footing, our top focus is to continue aggressive but calculated in-field exploration at Newmont Lake. Enduro’s unique exploration strategy and executional ability allows our technical team to generate real-time refined drilling targets and act on our findings faster than traditional exploration methods. Drilling is already well underway, and more information will follow as it becomes available.”
Condolences for Nearby Fatal Helicopter Accident
The Company would like to extend its condolences to the family, colleagues, and friends of a helicopter pilot who was fatally injured in a tragic aviation accident on a mineral exploration project south of the Company’s Newmont Lake Project.
Dylan Hunko, COO of Enduro commented, “As fellow explorers, words cannot express how saddened we are to hear of the tragic helicopter accident that claimed the life of the pilot on board. The incident reminds everyone of the inherent risks our industry faces. We wish to extend our condolences to all those affected, and our thoughts and prayers are with you.”
About Enduro Metals
Enduro Metals is an exploration company focused on it’s flagship Newmont Lake Project; a total 618km2 property located between Eskay Creek, Snip, and Galore Creek within the heart of northwestern British Columbia’s Golden Triangle. Enduro entered into an option agreement to acquire 436km2 from Romios Gold Resources who has carefully amalgamated the area since 2005 from numerous smaller operators. Remaining terms on the option agreement are a $1,000,000 CAD cash payment, and issuance of 8 million Common Shares to Romios Gold Resources. Romios will retain a 2% Net Smelter Returns Royalty (an “NSR“) on the Newmont Lake Project, or on any after-acquired claims within a 5 km radius of the current boundary of the project, which may be reduced at any time to a 1% NSR on the payment of $2 million per 0.5% NSR. The remaining 182km2 is owned 100% by Enduro and was acquired via staking. Building on prior results, the Company’s geological team have outlined 4 deposit environments of interest across the Newmont Lake Project including high-grade epithermal/skarn gold along the McLymont Fault, copper-gold alkalic porphyry mineralization at Burgundy, high-grade epithermal/skarn silver/zinc at Cuba, and a large 9km x 4km geochemical anomaly hosting various gold, silver, copper, zinc, nickel, cobalt, and lead mineralization along the newly discovered Chachi Corridor.
Work in 2020 will seek to further extend the known gold deposit and to investigate the discovery potential of additional targets.
On Behalf of the Board of Directors,
ENDURO METALS CORP.
“Cole Evans“
President/CEO
- Published in Enduro Metals Corp., Mining, News Home
Enduro Metals Closes $11.18 Million Non-Brokered Private Placement
Enduro Metals Corporation (TSXV: ENDR) (OTC Pink: SIOCF) (FSE: SOG) (“Enduro” or the “Company“) is pleased to announce that it has closed its previously announced non-brokered private placement (the “Offering“) for gross proceeds of approximately $11.18 million.
Mr. Cole Evans, President & CEO of Enduro commented, “We are pleased by the level of interest for this non-brokered private placement that was upsized due to significant demand. We would like to thank all existing and new shareholders for their support, with a special thanks to Mr. Rob McEwen for significantly increasing his position in the Company, as well to other note-worthy investors whose vote of confidence in Enduro Metals demonstrates the potential of the Newmont Lake Project, and the Company’s growth strategy of further exploration and development to maximize value for our shareholders.”
The Offering included the issuance of: (i) 40,350,000units of the Company (the “Units“) at a price of $0.25 per Unit for aggregate gross proceeds of $10,087,500; and (ii) 3,310,893Common Shares issued on a flow-through basis (the “FT Shares“) at a price of $0.33 per FT Share for aggregate gross proceeds of $1,092,594.69 million. Each Unit consists of one common share in the capital of the Company (a “Common Share“) and one Common Share purchase warrant (the “Warrants“). Each Unit Warrant entitles the holder thereof to acquire an additional Common Share at a price of $0.38/share for a period of 18 months from the closing of the Offering.
Catalina Discovery Ltd., a corporation owned and controlled by Cole Evans, acquired 100,000 Units in the Offering for total consideration of $25,000. Prior to the closing of the Offering, Mr. Evans beneficially owned, or had control and direction over, 11,323,611 Common Shares. In addition, Mr. Evans holds or controls convertible securities, including common share purchase warrants and stock options (collectively, the “Convertible Securities“), entitling him to acquire up to an additional 13,111,111Common Shares. Subsequent to the Offering, Mr. Evans beneficially owns and controls, directly or indirectly, 11,423,611 Common Shares, representing approximately 5.82% of the outstanding Common Shares. In addition, if Mr. Evans were to exercise all of the Convertible Securities and exercise the Warrants acquired under the Private Placement, he would obtain ownership and control over an additional 13,211,111Common Shares, which when aggregated with the other Common Shares directly or indirectly owned or controlled by Mr. Evans would total 24,634,722, representing 10.37% of the issued and outstanding Common Shares on a partially diluted basis (i.e., assuming the exercise of only Mr. Evans’ Convertible Securities).
Mr. Evans has advised the Company that the Shares were acquired for investment purposes. Mr. Evans has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Evans considers relevant from time to time.
A copy of the applicable early warning report will appear on the Company’s profile on SEDAR and may also be obtained by contacting Mr. Evans’ office at (236) 420-4050 (Unit 202 – 1632 Dickson Avenue, Kelowna, British Columbia V1Y 7T2).
Certain insiders of Enduro have acquired an aggregate of 240,000Units in the Offering, and as such the Offering is considered a “related party transaction” as defined under Multilateral Instrument 61-101. The Company has relied on exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the insiders’ participation in the Offering, as the Offering does not exceed 25% of the Company’s market capitalization.
It is expected that the proceeds of the Offering will be used for exploration and development of the Company’s Newmont Lake Project and for general working capital purposes.
In connection with the Offering, Enduro has paid aggregate cash finders’ fees of $284,778.80 and issued 1,068,301 finder warrants (the “Finder Warrants“) to eligible finders, in accordance with the policies of the TSX Venture Exchange (the “Exchange“). Each Finder Warrant entitles the holder to purchase one Common Share for a period of 18 months at an exercise price of $0.38 per share with respect to subscriptions received for Units (844,531 Finder Warrants) and at an exercise price of $0.50 per share for subscriptions received for FT Shares (223,770 Finder Warrants).
The securities issued on closing of the Offering (including the Finder Warrants) are subject to a statutory hold period expiring on December 18th, 2020. The Offering remains subject to the final approval of the Exchange.
About Enduro Metals
Enduro Metals is an exploration company focused on it’s flagship Newmont Lake Project; a total 618km2 property located between Eskay Creek, Snip, and Galore Creek within the heart of northwestern British Columbia’s Golden Triangle. Enduro entered into an option agreement to acquire 436km2 from Romios Gold Resources who has carefully amalgamated the area since 2005 from numerous smaller operators. Remaining terms on the option agreement are a $1,000,000 CAD cash payment, and issuance of 8 million Common Shares to Romios Gold Resources. Romios will retain a 2% Net Smelter Returns Royalty (an “NSR“) on the Newmont Lake Project, or on any after-acquired claims within a 5 km radius of the current boundary of the project, which may be reduced at any time to a 1% NSR on the payment of $2 million per 0.5% NSR. The remaining 182km2 is owned 100% by Enduro and was acquired via staking. Building on prior results, the Company’s geological team have outlined 4 deposit environments of interest across the Newmont Lake Project including high-grade epithermal/skarn gold along the McLymont Fault, copper-gold alkalic porphyry mineralization at Burgundy, high-grade epithermal/skarn silver/zinc at Cuba, and a large 9km x 4km geochemical anomaly hosting various gold, silver, copper, zinc, nickel, cobalt, and lead mineralization along the newly discovered Chachi Corridor.
Work in 2020 will seek to further extend the known gold deposit and to investigate the discovery potential of additional targets.
On Behalf of the Board of Directors,
ENDURO METALS CORPORATION
“Cole Evans“
President/CEO
- Published in Enduro Metals Corp., Mining, News Home
Enduro Metals Announces Increase in Previously Announced Non-Brokered Private Placement
Enduro Metals Corporation (TSXV: ENDR) (OTC PINK: SIOCF) (FSE: SOG) (“Enduro” or the “Company“) is pleased to announce that, due to strong investor demand, it is increasing the size of its previously announced non-brokered private placement (the “Offering“) for gross proceeds of up to approximately $11.1 million.
Non-Brokered Private Placement
The upsized Offering will consist of two parts, as follows:
1) Up to approximately 40,000,000 Units of the Company (the “Units“) at a price of $0.25 per Unit for aggregate gross proceeds of up to approximately $10 million. Each Unit will consist of one common share in the capital of the Company (a “Common Share“) and one Common Share purchase warrant (the “Warrants“). Each Warrant will entitle the holder thereof to acquire an additional Common Share at a price of $0.38/share for a period of 18 months from the closing of the Offering.
2) Up to approximately 3,333,333Common Shares issued on a flow-through basis (the “FT Shares“) at a price of $0.33 per FT Share for aggregate gross proceeds of up to approximately $1.1 million.
It is expected that the proceeds of the Offering will be used for exploration and development of the Company’s Newmont Lake Project and for general working capital purposes.
In respect of subscriptions sourced by a eligible finders (each a “Finder“), the Company will pay a fee to the Finder as follows: (i) a cash fee equal to 8.0% of the gross proceeds subscribed for; and (ii) non-transferable finder warrants (the “Finder Warrants“) equal to 8.0% of the total number of securities subscribed for. Each Finder Warrant will entitle the holder to purchase one Common Share for a period of 18 months following the Closing (as defined below) at an exercise price of $0.38 per share with respect to subscriptions received for Units and at an exercise price of $0.50 per share for subscriptions received for FT Shares.
The Offering is scheduled to close on or about August 17, 2020, or such other date or dates as may be determined by the Company (the “Closing“) and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange (the “Exchange“). The securities to be issued under the Offering will have a hold period of four months plus one day from Closing, in accordance with applicable securities laws and the policies of the Exchange.
About Enduro Metals
Enduro Metals is an exploration company focused on it’s flagship Newmont Lake Project; a total 618km2 property located between Eskay Creek, Snip, and Galore Creek within the heart of northwestern British Columbia’s Golden Triangle. Enduro entered into an option agreement to acquire 436km2 from Romios Gold Resources who has carefully amalgamated the area since 2005 from numerous smaller operators. Remaining terms on the option agreement are a $1,000,000 CAD cash payment, and issuance of 8 million Common Shares to Romios Gold Resources. Romios will retain a 2% Net Smelter Returns Royalty (an “NSR“) on the Newmont Lake Project, or on any after-acquired claims within a 5 km radius of the current boundary of the project, which may be reduced at any time to a 1% NSR on the payment of $2 million per 0.5% NSR. The remaining 182km2 is owned 100% by Enduro and was acquired via staking. Building on prior results, the Company’s geological team have outlined 4 deposit environments of interest across the Newmont Lake Project including high-grade epithermal/skarn gold along the McLymont Fault, copper-gold alkalic porphyry mineralization at Burgundy, high-grade epithermal/skarn silver/zinc at Cuba, and a large 9km x 4km geochemical anomaly hosting various gold, silver, copper, zinc, nickel, cobalt, and lead mineralization along the newly discovered Chachi Corridor.
Work in 2020 will seek to further extend the known gold deposit and to investigate the discovery potential of additional targets.
On Behalf of the Board of Directors
ENDURO METALS CORP.
“Cole Evans“
President/CEO
- Published in Enduro Metals Corp., Mining, News Home
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