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TSX: NHK
TORONTO, June 6, 2019 /CNW/ - Nighthawk Gold Corp.
("Nighthawk" or the "Company") (TSX: NHK; OTCQX:
MIMZF) is pleased to announce that it has closed the bought
deal private placement (the "Offering"), announced on
May 15 and May
16 2019, co-led by PI Financial Corp and BMO Capital
Markets, and also including Haywood Securities Inc. (the
"Underwriters"), and that the over-allotment option granted
to the Underwriters was exercised in full.
Dr. Michael Byron, President
and CEO commented, "We are extremely pleased with the support
in this recent raise, which included our strategic partners, and a
group of cornerstone shareholders who share our long-term views.
Concurrent with the announcement of the financing, we announced an
increase to our 2019 drill program, upsized to $15 million which we anticipate will allow us to
complete a minimum of 35,000 metres of drilling (split between our
Colomac Gold Project and our higher priority regional drilling
targets), including the continuation of our regional prospecting
and mapping program to generate new discoveries and advance
priority regional targets towards drill-ready status. At the end of
the 2019 drilling campaign, we will look to update the Colomac
resource estimate and anticipate producing a maiden resource at our
high-grade Damoti Lake Gold Project."
"I truly believe that with our continued efforts, the Indin Lake
Gold Property has the endowments to become one of Canada's next gold camps which already has a
growing multi million-ounce deposit at its centre. With the recent
top-up in funding, we are embarking on a busy and exciting year of
exploration, where initial results returned our best gold intercept
to date at Colomac, which we announced on May 28, 2019. The three drills on site will be
active throughout the remainder of our drilling season with two
drills currently in operation at Colomac, and the third now testing
some of our higher priority regional targets. We look forward to
providing additional results as they become available."
Pursuant to the Offering, the Company issued 14,375,000
flow-through common shares (the "FT Shares") at
a price of $0.40 per FT Share and
13,915,000 charity flow-through common shares (the "Charity
FT Shares"), at a price of $0.495 per Charity FT Share for gross proceeds of
$12,637,925 million. Both the FT
Shares and Charity FT Shares qualify as "flow-through shares"
within the meaning of the Income Tax Act (Canada).
The gross proceeds from the sale of the FT Shares and Charity FT
Shares will be used for exploration expenditures on Nighthawk's
Indin Lake Gold Property located in Canada's Northwest
Territories, with an increased exploration budget of
$15 million for 2019, with a minimum
of 35,000 metres of drilling on its Colomac Gold Project and
several of its high-priority regional targets, including
approximately $1 million dedicated to
its regional prospecting and mapping initiatives.
The FT Shares and Charity FT Shares issued under the Offering,
as applicable, are subject to a hold period under Canadian law
which will expire four months and one day from the closing date of
the Offering being October 7, 2019.
Certain directors and officers of the Company participated in the
Offering, purchasing in the aggregate 485,000 FT Shares for
aggregate proceeds of $194,000.
The Offering remain subject to the final approval of the Toronto
Securities Exchange. After giving effect to this Offering,
Nighthawk is well financed with approximately $22.0 million in working capital.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act") or any state securities laws and may not be offered or
sold within the United States or
to U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
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 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 12 months
to 18 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 13, 2018, 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 and the Toronto
Stock Exchange final approval; the ongoing exploration program and
the timing and results thereof; and an updated resource estimate
for the Indin Lake Gold Property, the timing and results thereof.
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, 2018,
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.