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Monday, 24 December 2012
Homestake Resource to raise up to $1.7 mln for Kinskuch exploration
Homestake Resource Corp (CVE:HSR) says it plans to raise up to almost $1.7 million for its Kinskuch exploration program in British Columbia through an equity financing.
The non-brokered financing will be made up of flow-through and non flow-through units.
The company also said in its statement late Friday that the private placement financing it announced in September will not go ahead.
In the newest offering, the company will issue a maximum of 4.75 million flow-through units at 20 cents each, for a total of up to $950,000.
It will also issue 4.7 million non flow-through units for 15 cents each, raising up to $705,000.
The flow through units will be made up of one flow-through share and one half share purchase warrant, with each whole warrant allowing the holder to buy one common share at a price of 25 cents for a period of two years.
The non flow through units, meanwhile, will consist of one common share and one share purchase warrant, with each whole warrant allowing the holder to buy another common share at a price of 20 cents for a period of two years.
The new funds will be used for Canadian exploration expenses, as defined under the Canadian Income Tax Act, for the company's exploration of the Kinskuch project in British Columbia, as well as for working capital.
The Kinskuch project is a large 623 square kilometre property located directly east of the company's Homestake Ridge property, and extends south around 30 km to tidewater at Alice Arm/Kitsault in Northwestern British Columbia.
Rock and soil geochemical results from the 2012 exploration program continue to show "extensive mineralization" throughout the property, the company said.
Specifically, earlier this month, the company announced that surface soil and rock sampling on the Illiance River trend extended silver-lead-zinc mineralization south of Homestake's 2011 drilling by an additional 750 metres, and expanded the overall trend to more than 4.5 kilometres of strike length.
Mineralization along the entire trend remains open in all directions.
The Illiance River trend is the first of "several drill-ready target areas" found on the property located next to the company's own Homestake Ridge project, and will be the focus of the 2013 exploration program.
The Homestake Ridge project is being advanced as a potential high-grade underground mining operation with a current NI 43-101 compliant indicated resource, at a 3.0 g/t gold equivalent cut-off, of 191,000 ounces gold and 1,350,000 ounces silver plus an inferred resource of 530,000 ounces gold and 13,470,000 ounces silver.
Homestake also holds a 9.76 percent interest in Bravada Gold Corporation (CVE:BVA), which is exploring 21 projects in Nevada.