TORONTO, Jan. 8, 2020 /PRNewswire/ - Nighthawk Gold Corp.
("Nighthawk" or the "Company") (TSX: NHK; OTCQX:
MIMZF) is pleased to announce it has retained leading
engineering firm, JDS Energy & Mining Inc. ("JDS"), to
complete an initial internal, high-level scoping study (not
prepared in compliance with NI 43-101, the "Study"), that
will examine the economic potential of the Colomac Gold Project
("Colomac"). As previously announced, a mineral resource
estimate is being completed which the Company anticipates will be
ready within the first half of the year and which is expected to
include a mineral resource update for Colomac and a maiden mineral
resource estimate for the Damoti Lake Gold deposit. The updated
resource estimate for Colomac will serve as the basis for the Study
which will examine both open pit and underground mining potential.
As well, the Company is moving forward with its proposed
consolidation (the "Share Consolidation") of its share
capital on the basis of five (5) existing common shares for
one (1) new common share.
Dr. Michael Byron, President
and CEO commented, "With previous shareholder support for the
Share Consolidation, the timing is right to enact the rollback
which we believe will allow Nighthawk to gain exposure to a broader
shareholder base. With our continued efforts, we strongly
believe that the Indin Lake Gold Property has the endowments to
become one of Canada's premier
gold camps, which already has a robust project with a
multi-million-ounce inferred mineral resource at its centre. To
that end, we are engaging JDS to initiate engineering studies
to examine the potential development and mining opportunities at
Colomac. We look forward embarking on this important step forward
in advancing Colomac."
Jeff Stibbard, Chief Executive
Officer of JDS commented, "We are happy to be working with the
Nighthawk team and delivering on our commitment to help work toward
their initial engineering studies to begin to consider the
viability of Colomac. Nighthawk has completed enough base work to
embark on the engineering path, and we are pleased to have been
selected to work with them given our extensive operational and
permitting experience on a number of cold weather heap leach and
Northwest Territories mining
projects such as Eagle Gold, Coffee, Hope
Bay and Gahucho Kue to name a few."
Internal Scoping Study
JDS is a renowned engineering
firm with a powerful and experienced team of seasoned
professionals. JDS has successfully designed, constructed and
operated similar projects in the region. They have taken many
stranded or un-optimized assets and engineered them to a positive
result by focusing on the economics to ensure projects are scoped
correctly. They also acquire, design, permit, finance, build and
operate their own projects, making them well known to the
investment community and better equipped to understand the needs of
their clients.
Share Consolidation
Currently, a total of 223,360,996
common shares in the capital of the Company are issued and
outstanding. Accordingly, if put into effect on the basis of
five (5) existing common shares for one (1) new common share,
a total of approximately 44,672,199 common shares in the capital of
the Company would be issued and outstanding following the Share
Consolidation, assuming no other change in the issued capital. The
Share Consolidation is anticipated to become effective on or about
January 13, 2020.
The Share Consolidation will affect all of the Company's stock
options, and share units issued and outstanding at the effective
date. At the time of the Share Consolidation, the number, exchange
basis or exercise price of all stock options and share units will
be adjusted, as applicable, to reflect the one-for-five Share
Consolidation. The actual adjustment will be made by the Company in
consultation with its advisors.
The Share Consolidation was previously approved by shareholders
at a meeting held on June 3, 2019 and
has been conditionally approved by the Toronto Stock Exchange.
Please refer to the management information circular of the Company
dated April 30, 2019, for additional
details on the Share Consolidation. The circular is available under
the Company's profile on SEDAR at www.sedar.com.
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.
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
Share Consolidation; an updated mineral resource estimate for
Colomac and a maiden resource estimate for Damoti and the timing
and results thereof; future economic studies and 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 affect 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.
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SOURCE Nighthawk Gold Corp.