COQUITLAM, BC, March 3, 2017 /CNW/ - Castle Silver Resources
Inc. (TSXV:CSR, OTC:TAKRF, FRANKFURT:4T9B) (the "Company" or
"Castle"), an exploration leader in the prolific Cobalt-Gowganda silver-cobalt district in northern
Ontario, is pleased to provide a
corporate update including details on a proposed private placement
expected to close shortly.
The month of February featured a significant upswing in market
activity for Castle. This can be largely attributed to
dynamics in the energy metals space, a breakout in the price of
cobalt to new multi-year highs above $20 a pound (U.S.), and a major revival of
interest in the Cobalt-Gowganda Camp. This region
historically featured over 100 mines and contributed powerfully to
the growth of the Canadian mining industry after a spectacular
initial discovery in 1903.
Starting in 2011, well before the current upswing in the
Cobalt market driven by new
technological demand as well as supply concerns, Castle
strategically positioned itself in this unique district with
approximately $4 million invested
over the last six years to advance its Castle Property in
Gowganda and its Beaver Property
in Cobalt. Both were well-known silver-cobalt producers
beginning in the early 1900's and were also among the final few
active mines when Agnico Eagle ceased production in the region just
over 25 years ago due to a plunge in silver prices.
Castle Private Placement
Proceeds from a proposed non-brokered $750,000 private placement in Castle at
15 cents per unit (non-flow-through)
will be used, in part, to expand an ongoing exploration program at
the Castle Property following a recently completed IPower3D
(induced polarization) survey to identify potential new
silver-cobalt drill targets. Importantly, the Company enjoys
full access to the underground workings in the main adit after a
closure plan accepted by the Ontario government and an agreement with local
First Nations.
Meanwhile, the Company eagerly anticipates commencing a new work
program at Beaver, also funded through proceeds from this
financing, following release of preliminary results from
bench-scale metallurgical flotation and gravity testwork as
reported in the Company's news release January 31, 2017.
Private Placement Details
Each unit of the private placement comprises one share and one
share purchase warrant. Each warrant will entitle the holder
thereof to purchase one additional common share of the Company at
an exercise price of $0.20 per share
for a period of two years from closing, subject to TSX Venture
Exchange ("Exchange") approval. The expiry of the warrants
may be accelerated if the closing price of the Company's shares on
the TSX Venture Exchange is at least $0.30 per share for a period of 10 consecutive
trading days during the term of the warrant. The Company may
accelerate the expiry of the warrants to 20 calendar days from the
date express written notice is given by the Company to the
holder. Proceeds of the private placement will also be used
for general working capital purposes. Finder's fees will be
paid in connection with the private placement, subject to Exchange
policies and approval.
All securities issued in connection with the private placement
are subject to a four-month and a day hold period in accordance
with applicable Securities Laws.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. (formerly Takara Resources Inc.) is
a TSX Venture-listed junior natural resource company focusing on
the exploration and development of former silver and cobalt mine
properties in northern Ontario
including the Castle Silver mine near Gowganda and the Beaver and Violet mines near
Cobalt. Additional information on the Company's properties is
available by visiting its website at
www.CastleSilverResources.com.
"Frank J. Basa"
Frank J. Basa P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements
address future events and conditions and therefore, involve
inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such statements.
SOURCE Castle Silver Resources Inc.