Vega Mining Options 7,000+ Hectares Adjoining Imperial Metals' Red
Chris Deposit in Northern British Columbia
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 26, 2014) - Vega
Mining Inc. (Vega) (TSX-VENTURE:VMI) is pleased to announce that it
has entered into an option agreement (the "Option Agreement") dated
February 26, 2014 (the "Effective Date") with Pistol Bay Mining
Inc. ("Pistol Bay") whereby Vega may earn a 70% interest in the
Summit A&D properties (the "Property"). Vega intends to rename
the Summit D property Vega Star 1 and the Summit A property Vega
Star 2.
In early February 2014, Pistol Bay received the final Assessment
Report and accompanying assay results from the field program
conducted on the Property adjoining the boundary of Imperial
Metals' Red Chris Copper-Gold project, located 80km south of the
town of Dease Lake in the Iskut area of northern British
Columbia.
In July 2013 UTM Exploration Services Ltd. (UTM) of Smithers,
British Columbia mobilized a crew to conduct field mapping and
sampling on areas of the Property (approximately 7,106 hectares)
which were not previously explored in 2010. In 2010 work done on
the Property included a soil geochemical survey and minor
geological mapping and stream silt sampling, resulting in 102 soil
samples and 7 silt samples. Two anomalous gold values were found.
Work was concentrated around the northern third of the Property,
and the southern quarter. Work resulted in a few anomalous soil
samples suggesting potential in the southwest and north.
The purpose of the July 2013 work program was to follow up on
the success of the 2010 field program and identify possible new
trends, as well as to discover new areas of interest and
mineralization. More exploratory work was to focus on the Summit D
(Vega Star 1) area in the north of the claim group where favorable
Hazelton group Calc-Alkaline volcanics and coincident copper
mineralization has been exposed and discovered in recent years,
both on neighbouring claims of other Minfile and tenure holders as
well as the success of 2010 rock sampling.
During the 2013 field program, 51 rock samples were taken over
the Property. All but 7 samples were taken from outcrop. The
Property was traversed following a similar path taken during the
2010 exploration field program with focus on following up on the
areas where assay values were elevated. In the process of this
follow up work, numerous new locations were discovered that yielded
visual mineralization and oxidation that warranted sampling.
As the sampling progressed and more and more areas were
exhibiting significant malachite staining and sulphide
mineralization, the sampling traverses were then focused on
following any and all apparent trends of this newly found
mineralization. An apparent trend of copper mineralization, all
within similar calc-alkaline rocks, extends an assumed 1200m from
the 2010 rock sample that assayed 0.85% Cu to the 2013 sample
#54872 that assayed 0.84% Cu.
Additional favourably mineralized and altered float boulders,
2km north of this trend, yielded 2 samples of 1.00% Cu and 0.71% Cu
respectively. The source outcrop of these samples remains
unknown.
In addition, a single rock sample taken in strongly veined
andesitic rocks along the claims on the eastern side of the Klappan
River produced a sample boasting 8.78 g/t Au.
The 2013 field program yielded a significant upside to the
property in that there is what appears to be a new discovery on the
Summit D (Vega Star 1) portion of the claim group and the new
corridor of mineralization is open in all directions. To date, the
Property has seen minimal exploration activity; however, given the
amount of excitement generated in the area in the past year,
coupled with the geological upside of the location of the
mineralization, further work is warranted on the Property to better
determine the extent of this new discovery.
For favourable assay results from the 2013 sampling program and
within the new discovery trend - see Pistol Bay's news release
dated February 5th 2014. (To view rock sample photos visit Pistol
Bay's website at www.pistolbaymining.com.)
Technical information in this news release has been prepared
and/or revised by Mike Magrum, PEng, a qualified person as defined
in NI 43-101.
Under terms of the Option Agreement, subject to TSX Venture
Exchange (the "Exchange") approval, Vega has the option to earn an
initial 60% interest in the Property by completing $1,500,000 in
exploration expenditures on the Property, making $110,000 in cash
payments to Pistol Bay and issuing Pistol Bay 3,500,000 common
shares over the next three years as follows:
Date |
Cash Payment |
Share Issuance |
Expenditure Requirement |
On the Effective Date |
$15,000 |
Nil |
Nil |
On Exchange approval of the Option Agreement |
Nil |
500,000 common shares |
Nil |
On or before the date which is six months from Exchange
Approval |
$20,000 |
500,000 common shares |
Nil |
On or before the date which is one year from Exchange Approval |
Nil |
Nil |
$250,000 |
On or before the date which is two years from Exchange
Approval |
$35,000 |
1,000,000 common shares |
$500,000 |
On or before the date which is three years from Exchange
Approval |
$40,000 |
1,500,000 common shares |
$750,000 |
Total |
$110,000 |
3,500,000 |
$1,500,000 |
If Vega earns the initial 60% interest in the Property, it may
earn an additional 10% for a total of a 70% interest by spending an
additional $1,000,000 on exploration work by the date which is five
years from Exchange Approval.
The Company also announces that it has closed the first tranche
of the non-brokered private placement previously announced February
24th 2014.
A total of 900,000 units will be issued as flow-through units at
a price of $0.07 per unit for total proceeds of $63,000. Each unit
will consist of one common share and one half of one share purchase
warrant. Each whole warrant will entitle the holder to purchase one
additional common share of the Company at a price of $0.12 per
share for 18 months from the date of closing.
Shares, warrants and any shares issued upon exercise of the
warrants are subject to a hold period of four months expiring June
26th 2014. The proceeds of the private placement will be used for
exploration work on the Company's projects.
Finders Fee: EMD Financial Inc. - $6,300 cash and 90,000 Broker
warrants. Each Broker Warrant is convertible into non-flow through
units of the Company at an exercise price of $0.07 until expiration
on August 25th 2015. Each unit comprises one share and one half of
one share purchase warrant Each whole warrant will entitle the
holder to purchase one additional common share of the Company at a
price of $0.12 per share for 18 months from the date of
closing.
The Company further announces that it has arranged a
non-brokered private placement of up to 5,000,000 units for total
proceeds of up to $250,000 subject to the approval of the TSX
Venture Exchange. Up to 5,000,000 units will be issued as non
flow-through units at a price of $0.05 per unit consisting of one
common share and one share purchase warrant. Each warrant will
entitle the holder to purchase one additional common share of the
Company at a price of $0.10 per share for eighteen (18) months from
the date of closing. The proceeds of the private placement will be
used for general working capital. Finder's fees, as allowed
pursuant to the policies of the TSX Venture Exchange, may be
payable in connection with the offering.
Vega Mining Inc. Inc. (TSX-VENTURE:VMI) is a Canadian junior
exploration company focused on discovering gold and graphite
deposits in politically safe jurisdictions.
On behalf of the board of VEGA MINING INC.
Archie Boyce, President
"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 release."
Cautionary note:
This report contains
forward looking statements. Resource estimates, unless specifically
noted, are considered speculative. Any and all other resource or
reserve estimates are historical in nature, and should not be
relied upon. The production rate and mine-life projections have
been made without support of a feasibility study, there is no
certainty the proposed operations will be economically viable. By
their nature, forward looking statements involve risk and
uncertainties because they relate to events and depend on factors
that will or may occur in the future. Actual results may vary
depending upon exploration activities, industry production,
commodity demand and pricing, currency exchange rates, and, but not
limited to, general economic factors. Cautionary Note to US
investors: The U.S. Securities and Exchange Commission specifically
prohibits the use of certain terms, such as "reserves" unless such
figures are based upon actual production or formation tests and can
be shown to be economically and legally producible.
Vega Mining Inc.Archie Boyce(604) 683 5445(604)
687-9631info@vegamininginc.comwww.vegamininginc.com