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UNITED STATES./
SASKATOON, April 1, 2020 /CNW/ - Omineca Mining and Metals
Ltd. (TSX-V: OMM) ("Omineca" or the "Company") announces that it
has arranged a non-brokered private placement offering of up to
4,166,666 units of the Company (the "Units") at a price of
$0.12 per unit for gross proceeds of
$500,000, along with 6,250,000 common
shares of the Company issued on a flow through basis (the "FT
Shares") at a price of $0.16 for
gross proceeds of $1,000,000.
Each Unit consists of one common share and one common share
purchase warrant (a "Warrant") with each Warrant entitling the
holder to acquire one common share of the Company at a price of
$0.20 for a period of 24 months
following the closing of the offering.
Omineca is planning a hard rock exploration and drilling program
at Wingdam, which represents the Company's initial exploration
program for the lode gold source of placer gold recovered from the
underground paleochannel at Wingdam, BC, Canada. While not
finalized, the exploration plan will begin with structural mapping
and trenching, followed with diamond drilling of up to 20
exploration holes in four initial target areas for a planned 6,000
meters. This will be Omineca's first drill program for lode
gold at Wingdam.
The drill program is targeting NW striking faults where they
intersect NE trending faults identified in the magnetic survey
completed in 2018. This structural control pattern is
indicative of Riedel style strike-slip deformation that would
produce sub-vertical ore shoots similar to the structural controls
of the gold hosted at Osisko Gold Royalties' Cariboo Gold Project
at Barkerville, 25 kilometers to the east.
In an earlier SkyTEM survey, a large electro-magnetic signature
was identified immediately upstream of Omineca's underground placer
recovery program at Wingdam. The Lightning Creek river valley
is a major erosional feature cross-cutting through several parallel
structures including the large SkyTEM electro-magnetic anomaly. The
creek itself is known to contain high concentrations of placer gold
immediately adjacent to and downstream of the electro-magnetic
anomaly (see NI 43-101 report on 2012 bulk sample at Wingdam
conducted by OMM's wholly owned subsidiary CVG Mining). Parallel
structures with similar geology are known to host lode gold within
the region. A number of placer gold nuggets recovered in 2012 were
rough to jagged edged and in some cases contained quartz pieces,
potentially indicative of a nearby lode source.
Exploration will commence once the snow cover has melted and
drill permits have been received. This exploration program
will run concurrently with the underground rehabilitation and
development work on the Wingdam paleo placer project, which will
also commence after the spring thaw.
The gross proceeds from the issuance of the FT Shares will be
used for Canadian exploration expenses relating to the exploration
program and will qualify as flow-through mining expenditures, as
defined in Subsection 127(9) of the Income Tax Act (Canada), which will be renounced to the
subscribers with an effective date no later than Dec. 31, 2020. The net proceeds of the offering
of the Units will be used for exploration on the hard rock claims
at Wingdam and for general working capital purposes.
Omineca advises that the insiders of the Company may participate
in the financing, which will be completed pursuant to available
related party exemptions under Multilateral Instrument 61-101
Protection of Minority Security Holders in Special
Transactions. The offering is subject to TSX Venture
Exchange approval and all securities are subject to a four-month
hold period. Finders' fees may be payable in connection with
the financing, all in accordance with the policies of the TSX
Venture Exchange and applicable securities laws.
Qualified person
Dr. Stewart A. Jackson, PGeo, is a qualified person within
the context of National Instrument 43-101 and has prepared, read
and approved the technical aspects of this news release.
About Omineca Mining and Metals Ltd.
Omineca Mining and Metals Ltd. controls its flagship Wingdam
Project and the Fraser Canyon Project through its wholly owned
subsidiary CVG Mining Ltd. The Wingdam Project is located 45
km east of Quesnel B.C. on the
Barkerville highway. The property includes both placer and
hard-rock tenures along the Lightning Creek valley, where
topographic conditions created a thick overburden which preserved a
large portion of the channel from conventional surface placer
mining activity.
Forward Looking Statements
This release includes forward-looking statements regarding
Omineca and its business. Such statements are based on the
current expectations and views of future events of Omineca's
management. In some cases, the forward-looking statements can
be identified by words or phrases such as "may", "will", "expect",
"plan", "anticipate", "intend", "potential", "estimate", "believe"
or the negative of these terms, or other similar expressions
intended to identify forward-looking statements. The
forward-looking events and circumstances discussed in this release
may not occur and could differ materially as a result of the
failure to consummate the project financing, the economic
feasibility of the Wingdam Project, known and unknown risk factors
and uncertainties affecting Omineca, including risks regarding the
resource industry, economic factors and the equity markets
generally and many other factors beyond the control of
Omineca. No forward-looking statement can be
guaranteed. Forward-looking statements and information by
their nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause our actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statement
or information. Accordingly, readers should not place undue
reliance on any forward-looking statements or information.
Forward-looking statements speak only as of the date on which they
are made and Omineca undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise, except as required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Omineca Mining and Metals Ltd