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TORONTO, July 11, 2018 /CNW/ - Nighthawk Gold Corp.
("Nighthawk" or the "Company") (TSX: NHK; OTCQX: MIMZF) is
pleased to announce that it has completed a non-brokered private
placement (the "Offering") of 5,000,000 common shares of the
Company that qualify as "flow-through shares" ("FT Shares"),
within the meaning of the Income Tax Act (Canada) (the "Tax Act"), at a price of
$0.50 per FT Share for aggregate
gross proceeds of $2,500,000. The
gross proceeds from the Offering will be used to fund "Canadian
exploration expenditures" which will qualify as "flow-through
mining expenditures" within the meaning of the Tax Act and will be
incurred on the Company's Indin Lake Gold Property in the
Northwest Territories.
The Company originally outlined an exploration budget of
$11 million (including a $9.9 million "flow-through" commitment to be
spent by the end of 2018) which would allow for approximately
25,000 metres of drilling within the Company's Indin Lake Gold
Property. The proceeds from the Offering will allow an increase in
metres from the planned 25,000 metre program to upwards of 30,000
metres of drilling, as well as an expanded prospecting program.
The 2018 drilling program commenced in March with three drills
in operation for the duration of the drill season. Two drills are
focused on the Colomac Gold Project ("Colomac"), aimed at
exploring for additional high-grade zones and infill drilling
within the current mineral resource in preparation for a future
mineral resource update. The third drill will test some of the more
prospective regional targets within the Company's district scale
land package including: the Leta Arm Project (targeting the main
deposits and showings along this 10-kilometre long mineralized
shear zone); the Treasure Island
prospect, following up on the positive drill results from its 2011
campaign; the high-grade Damoti Lake Gold Deposit where drilling
will explore the host fold structure along strike and to depth
below the current mineralization, with the objective to deliver a
maiden mineral resource estimate in early 2019. The Company is also
aggressively advancing several of its recent new discoveries to
possibly drill later in the program, including the Nice Lake Sill
(located 2 kilometres east of Colomac), the Andy Lake Showing (17
kilometres south-southeast of Colomac), and the Swamp Showing (7
kilometres northwest of Colomac). These new discoveries have never
been drilled.
Dr. Michael Byron, President and
CEO commented, "A key objective of the 2018 drill program was to
expand our exploration efforts outside of Colomac and advance some
of our more prospective Indin Lake Gold Property prospects
including the high-grade Damoti Lake Gold Deposit, the Leta Arm
Project, Treasure Island, and
given encouraging enough exploration results, drill the first holes
into some of our new discoveries such as the Nice Lake Sill area
and the Swamp Showing.
"We are thankful for the continued support from our key
supporters including Osisko Gold Royalties, Kinross Gold and Northfield Capital. This influx
of capital will position us to achieve our goals while maintaining
a healthy cash balance heading into 2019. As we continue to explore
the Indin Lake Gold Property, we are confident that more
discoveries will be generated, in support of the highly prospective
nature of this underexplored Archean gold camp."
All FT Shares issued under the Offering are subject to a hold
period of four months and a day from the closing date of the
Offering in accordance with the rules and policies of the Toronto
Stock Exchange ("TSX") and applicable Canadian securities
laws. The Offering remains subject to the final approval of the
TSX.
The securities offered have not been registered under
the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any State in which
such offer, solicitation or sale would be unlawful.
About Nighthawk
Nighthawk is a Canadian-based gold exploration company with 100%
ownership of a district-scale land position within the Indin Lake
Greenstone Belt, located approximately 200 km north of Yellowknife, Northwest Territories, Canada.
Nighthawk is focused on advancing the Colomac Gold Project with a
current inferred mineral resource of 2.6 million ounces of gold
(50.3 million tonnes at an average grade of 1.62 grams per tonne
gold), as well as advancing its other regional gold deposits and
showings within this largely underexplored Archean gold camp.
The Company has an experienced and dedicated team and is well
funded to complete its goals and objectives over the next 18-24
months.
Qualified Person
Dr. Michael J. Byron, Ph.D.,
P.Geo., President & Chief Executive Officer of Nighthawk, who
is the "Qualified Person" as defined by NI 43-101 for this project,
has reviewed and approved of the technical disclosure contained in
this news release. Please refer to NI 43-101 technical report
"Technical Report and mineral resource estimate update on the
Colomac Property of the Indin Lake Project", dated June 17, 2013, as filed under the company's
profile on www.sedar.com.
Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
information with respect to: the use of proceeds from the Offering,
the Company's exploration programs including its drilling program,
and the timing and results thereof; the ability and timing of an
updated mineral resource estimate at Colomac; and any potential for
future production at Colomac; and the ability to produce a maiden
resource for the Damoti Lake Gold Deposit, and the timing and
results thereof, the Company's cash balance heading into 2019, and
the final approval of the Offering by the TSX. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects", or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "does not anticipate", or
"believes" or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would",
"might", or "will be taken", "occur", or "be achieved".
Forward-looking information is based on the opinions and
estimates of management at the date the information is made, and is
based on a number of assumptions and is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Nighthawk to be materially different from those expressed or
implied by such forward-looking information, including risks
associated with the exploration, development and mining such as
economic factors as they effect exploration, future commodity
prices, changes in foreign exchange and interest rates, actual
results of current exploration activities, government regulation,
political or economic developments, environmental risks, permitting
timelines, capital expenditures, operating or technical
difficulties in connection with development activities, employee
relations, the speculative nature of gold exploration and
development, including the risks of diminishing quantities of
grades of reserves, contests over title to properties, and changes
in project parameters as plans continue to be refined as well as
those risk factors discussed in Nighthawk's annual information form
for the year ended December 31, 2017,
available on www.sedar.com. Although Nighthawk has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information. Nighthawk does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
SOURCE Nighthawk Gold Corp.