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TSX-V: VEIN | FSE: N071
TORONTO, April 24, 2017 /CNW/ - Enforcer Gold Corp
("Enforcer" or the "Company") (TSX-V: VEIN – FSE: N071) is pleased
to announce that it has closed the first tranche of the
$4,000,000 non-brokered private
placement announced on April 2, 2017
and April 12, 2017 (the "Offering")
for gross proceeds of $2,860,740.
Pursuant to the Offering, the Company issued: (a) 7,278,700
units ("Units"), at a price of $0.20
per Unit, for proceeds of $1,455,740;
and 5,620,000 "flow-through" common shares (each a "FT Share"), at
a price of $0.25 per FT Share, for
gross proceeds of $1,405,000. Each
Unit will consist of one common share and one-half of one common
share purchase warrant ("Warrant"), with each Warrant being
exercisable to acquire one common share of the company at a price
of $0.30 for a period of 24 months
following the closing date of the Offering.
The proceeds from the sale of FT Shares will be used for
Canadian Exploration Expenses (within the meaning of the Income Tax
Act (Canada) and Québec Tax Act)
and will be renounced for the current taxation year.
In connection with the Offering, members of the selling group
received a cash commission equal to 7% of the gross proceeds of the
Offering and brokers warrants ("Brokers Warrants") exercisable to
acquire that number of common shares of the Company equal to 7% of
the aggregate number of Units and FT Shares sold under the
Offering. All of the securities issued in connection with the
Offering are subject to a hold period expiring on August 22, 2017.
The Company intends to use the proceeds of the financing for
exploration on the high-grade Montalembert Gold Project located in
Quebec's prolific Abitibi
greenstone belt and for general working purposes.
Corporate
Update
The Company is pleased to announce the recent completion of its
very high resolution aeromagnetic survey over the entire
7,300-hectare high-grade Montalembert Gold Project using Geotech's
HeliGrad-VLF EM triaxial gradiometer system. The survey was
completed safely, on time and within budget. Over 1,800 line
kilometers were flown at a 50-meter line spacing. The detailed
magnetic coverage will be a major tool for Enforcer's
exploration team in delineating structural features of
folding, shearing and faulting, which the Company believes are key
controls to gold mineralization on the property.
The Company is finalizing its plans for the upcoming exploration
program set to commence in mid-May and run uninterrupted through
late fall 2017. The program will begin with surface work near the
Galena and No. 2 veins and will include increasing the exposure of
the veins along their north and south strike directions with
accompanying additional channel sampling. Drilling is anticipated
to commence in mid to late June. Property-wide, the Company
anticipates drilling 6,000 to 8,000 meters using a diamond drill
rig and up to 1,000 meters using a reverse circulation rig.
Drilling will initially test 4 high-priority targets based on the
Company's review of historical data. Once interpretation of the new
high-definition magnetic data is completed, prospecting crews will
set out to ground-truth anomalies in preparation for follow-up
exploration including diamond drilling.
President and CEO, Steve
Roebuck comments:
"We are very excited to be in the final stages of preparation
for our first comprehensive exploration program on the high-grade
Montalembert Gold Project. The property is underexplored in terms
of modern exploration techniques, and the high-grade showings have
not received the level of investigation commensurate with their
potential. The 2017 program is designed to explore the property in
a methodical and systematic way, increasing our knowledge of the
controls to mineralization in area and expanding and prioritizing
targets for diamond drilling."
About Enforcer Gold Corp
Enforcer Gold Corp is earning a 100% interest in the
7300-hectare high-grade Montalembert Gold Project located west of
Chibougamau in Quebec's prolific Abitibi Greenstone Belt. The
project is very well situated only 5 kilometers from a paved
highway, hydro-electric power and with easy access to skilled
labour, fuel, food and accommodation it makes exploration costs
extremely low.
Two recent channel samples from the Galena vein, taken 20 meters
apart along strike length, assayed 510.79 grams per tonne Au over 1
meter and 118.79 grams per tonne Au over 1 meter. Enforcer Gold has
committed over $2.2M to fund its 2017
exploration program which includes; data compilation, ground and
airborne geophysics, stripping of overburden, mapping, prospecting,
channel sampling, RC and diamond drilling.
On behalf of the Board of Directors
Enforcer Gold Corp.
Neither the 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 news release.
The TSX Venture Exchange has in no way passed upon the merits
of the proposed transactions and has neither approved nor
disapproved the contents of this press release.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS
NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES, AND DOES NOT
CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL
ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT
BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATED
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS,
AND MAY NOT BE OFFERED OR SOLD IN THE
UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT
THEREFROM.
SOURCE Enforcer Gold