West Kirkland Mining (CVE:WKM) said Wednesday it has arranged a private placement financing for just over $4.0 million in proceeds.
placement, with PI Financial and Cormark Securities as co leads and
joint book runners, will consist of 11.43 million units at a price of 35
Each unit will comprise one common share and one half of one common share purchase warrant.
whole warrant entitles the holder to acquire one common share for a
price of 60 cents for a period of 18 months from the closing date.
financing will allow the company to continue our drilling programs and
commence engineering work on our TUG project along the Utah-Nevada
border," said vice president of exploration for West Kirkland, Michael
"We have a large land position and recently announced
our first resource estimate in the Long Canyon Trend in Nevada. This
will be our focus for the balance of 2012."
Earlier this month,
the company unveiled an initial 679,000 gold equivalent ounce inferred
mineral resource estimate* (27.1 million tonnes at 0.78 g/t AuEq, 0.1
g/t Au cut-off, Caracle Creek, see WKM news June 1 2012) for its TUG
deposit located in Utah, along the Long Canyon Trend.
34 per cent of the tonnes of the resource, representing 44 per cent of
the gold equivalent ounces, are located within 40 metres from surface,
providing potential for very low stripping and mining costs as well as
short project lead times, the company said.
The company has the
right to earn a 60 per cent interest at TUG as part of a regional
transaction completed in December 2010 with Fronteer Development (USA)
Inc., which is now a subsidiary of Newmont Mining (TSE:NMC)(NYSE:NEM).
terms of future plans for TUG and Nevada, West Kirkland said it plans
to start the design of a preliminary open pit, permitting and an
economic assessment for TUG.
This work will be integrated into the company's regional exploration program planned for the Long Canyon Trend.
the 12 mile showing, located roughly 10 kilometres to the west of TUG, a
new discovery of 1.73 g/t gold in oxidized material at surface was
Drilling of this new discovery at 12 Mile and additional
targets within the Long Canyon Trend will be a priority in the months
The financing is subject to the approval of the TSX Venture Exchange, with closing expected in mid July.
over-allotment option has also been granted to the underwriters, to
purchase up to an additional 15 per cent of units up until the closing
As consideration for their services, the underwriters will also receive a cash commission of 7 per cent of the gross proceeds.
Formed in 2010, West Kirkland Mining is focused on gold exploration along major trends in North America.
company has consolidated mineral rights positions in the Kirkland Lake
area of Ontario and within major gold trends of North Eastern
* Prepared by Jason Baker, P. Eng. of
Caracle Creek International Consulting Inc. (“Caracle Creek”) May 29,
2012 and accepted by the Company on May 30, 2012. Michael G. Allen, Vice
President of Exploration for West Kirkland, and a qualified person as
defined by NI 43-101, has reviewed and approved the technical
information in June 1, 2012 news release other than the inferred mineral
resource estimate, including but not limited to the plans of the
Company. He is the non-independent qualified person for the purpose of
this news release.