Gitennes to Conduct Non-Brokered Private Placement on Revised Terms to Finance Phase III Diamond Drilling of the Snowbird High Grade Gold Project
(TheNewswire)
Vancouver, British Columbia – TheNewswire – July 30, 2019 – Gitennes Exploration Inc. ("Gitennes" or the "Company") - (TSXV:GIT) announces that further to its news release dated July 8 it is amending the terms of the non-brokered private placement which will be used to primarily finance a Phase III diamond drill programme of the Snowbrid High Grade Gold Project. The financing will consist of up to 10 million non-flow through units for gross proceeds of up to $350,000 and up to 18.6 million flow-through units for gross proceeds of up to $650,000.
The non-flow through units are priced at 3.5 cents and consists of one common share and one full common share purchase warrant. Each full warrant entitles the holder to purchase one common share of Gitennes at five cents for three years. The flow through units are priced at 3.5 cents and consist of one common share and one full common share purchase warrant. Each full warrant entitles the holder to purchase one common share of Gitennes at five cents in year one and six cents in year two.
Gross proceeds from the financing will mainly be used for exploration on the Company’s two properties located in northern, BC. Snowbird High Grade Gold Property Phase III, 4,400 metre diamond drilling program - $770,000; Maroon Gold Project surface work including MAG and VLF, mapping and soil sampling - $112,500; rent - $10,800; office - $6,000; legal, audit and accounting - $18,000; offering expenses and finder`s fees - $47,000; regulatory filing fees - $8,000; and working capital – $27,700.
The Company contemplates that various exemptions will be utilized pursuant to this financing. It may rely upon the suitability advice exemption (B.C. Instrument 45-536) as well as the existing shareholder exemption (CSA notice 45-313) which allows for an investment of up to $15,000 (from a non-accredited investor) within any 12-month period. There is no material fact or material change that has not been generally disclosed.
Finder’s Fees are payable on the private placement. The completion of the private placement and payment of any commission and fees remains subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and any shares issued will be subject to a four-month hold period.
About the Snowbird High Grade Gold Project
The Company has completed two diamond drill programmes on its Snowbird High Grade Gold Project located near Fort St. James, British Columbia. The planned Phase III drilling programme will focus on the Main Zone and will test the continuity of the mineralization at depth with drilling significantly deeper than all previous drilling with planned hole lengths up to approximately 400 metres. The Snowbird Project’s logistics allows for drilling year-round and cost efficient drilling which over the last two diamond drilling programmes averaged approximately C$175/metre all-in.
Main Zone Highlights – Snowbird Gold Project
The Main Zone is the focus for the planned Phase III drilling. The zone has consistently delivered high grade results either through historical adit and trench sampling; diamond drilling in the early and late-1980’s or by Gitennes’ two diamond drilling programmes (see tables below).
Table 1 – Historical Adit and Trench Sampling
------------------------------------------------------- |Vein|Area |Total |# of |Wtd Ave Gold|Grade | | | |Length|Samples|Grade (g/t) |Range | | | |(m) | | |(g/t) | |-----------------------------------------------------| |Main|Adit-East|9.72 |15 |8.62 |1.87-19.9 | | |Wall | | | | | |-----------------------------------------------------| | |Adit-West|8.36 |14 |691.61 |4.67-4,602| | |Wall | | | | | |-----------------------------------------------------| |Peg |Trench |49.54 |66 |10.53 |1.31–45.44| |Leg | | | | | | --------------------------------------------------------
(1)Readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon.
Table 2 – Select Historical Drill Results and Gitennes Drill Results:
-------------------------------------------- |Hole | Gold|Length (metres)| | |(g/t) | | |------------------------------------------| |86-06 |5,050 |0.20 | |------------------------------------------| |80-07 |10.53 |4.80 | |------------------------------------------| | |30.34 |1.22 | | Including | | | |------------------------------------------| |86-02 |10.97 |2.97 | |------------------------------------------| |80-06 |9.57 |2.40 | |------------------------------------------| | |23.93 |0.93 | |including | | | |------------------------------------------| |86-07 |24.50 |1.00 | |------------------------------------------| |SB17-04 (GIT)|9.10 |2.02 | |------------------------------------------| | |16.20 |1.00 | | including | | | |------------------------------------------| |SB18-06 (GIT)|15.13 |1.32 | |------------------------------------------| | |22.50 |0.82 | | including | | | ---------------------------------------------
(1)Except for holes SB17-04 and SB18-06 readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon.
Based on Gitennes’ work and a review of historical information, high-grade gold occurs within and adjacent to the 25 to 150 metre wide silica-carbonate altered ultramafic unit in areas of high deformation (faulting/shearing) and is associated with key pathfinder elements arsenic and antimony. Gold in quartz veins is predominantly hosted within 10 metres of the footwall contact between the overlying mudstone altered ultramafic.
Gitennes’ review of historic drilling in combination with contemporary drilling from the Phase I and II programme suggests that the down dip extension of the Main Zone mineralization may steepen at depth. Phase III drilling will test this to depths of between 300 and 400 metres below surface. Note that almost all historical drilling has been to an average vertical depth of only about 75 metres. Success in this phase of drilling could triple the resource of the Main Zone.
About Gitennes Exploration Inc.
Gitennes is in the business of exploring for and advancing gold properties. The Company currently has two high grade gold exploration properties, Snowbird and Maroon, both in British Columbia and a 1% Net Smelter Returns royalty on the 18 million ounce Urumalqui Silver Project in Peru.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by J. Rensby (P.Geo.), technical advisor to the Company, who is a "qualified person" within the meaning of National Instrument 43-101.
For further information on the Company, readers are referred to the Company's website at www.gitennes.com and its Canadian regulatory filings on SEDAR at www.sedar.com.
Gitennes Exploration Inc.
"Ken Booth"
Ken Booth
President
For further information, please contact: Ken Booth
Phone: 604-682-7970 Email: info@gitennes.com
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.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain statements that constitute "forward-looking information" within the meaning of applicable Canadian securities laws concerning the business, operations and financial performance and condition of the Company. All statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations and orientations regarding the future. Often, but not always, forward-looking statements can be identified by words such as "pro forma", "plans", "expects", "may", "should", "budget", "schedules", estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Such forward-looking statements include, among others, statements as to the anticipated business plans and timing of future activities of the Company, including the exercise of the option to acquire the Snowbird Project and to conduct exploration activities thereon. Actual results could differ from those projected in any forward-looking statements due to numerous factors including risks and uncertainties relating to exploration and development and actual results of exploration activities; the ability of the Company to obtain additional financing; delays in obtaining governmental and regulatory approvals (including the TSX Venture Exchange), permits or financing; the need to comply with environmental and governmental regulations; potential defects in title to the Company's properties; fluctuations in the prices of commodities and precious metals; operating hazards and risks; environmental issues and liabilities; and competition and other risks and uncertainties of the mining industry. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that those beliefs, plans, expectations or intentions will prove to be accurate. Readers should consider all of the information set forth herein and should review the Company’s periodic reports filed from time-to-time with Canadian securities regulators. These reports and the Company's filings are available at www.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release and, except as otherwise required by law, the Company undertakes no obligation to update the forward-looking statements contained herein, or to update the reasons why actual results could differ from those projected in these forward-looking statements.
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