17:07:56 EDT Thu 30 Mar 2023
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Alpha Exploration Ltd
Symbol ALEX
Shares Issued 58,465,905
Close 2023-02-06 C$ 0.78
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Alpha Exploration arranges $5M private placement

2023-02-07 09:31 ET - News Release

Mr. Michael Hopley reports


Alpha Exploration Ltd. has arranged a non-brokered private placement financing of units at a price of 70 cents per unit, for aggregate gross proceeds of up to $5-million.

Each unit comprises one ordinary share of the corporation and one ordinary share purchase warrant. Each warrant will entitle the holder to acquire one additional share at an exercise price of $1.05 per warrant share for a period of 24 months immediately following the closing date (as defined below).

The corporation expects to close the first tranche of the private placement on or before March 2, 2023.

In connection with the private placement, Alpha may pay certain arm's-length parties a cash finder's fee payment equal to up to 6 per cent of the units that are sold to subscribers introduced by such parties. The net proceeds of the private placement will be used to finance continuing exploration work on the Kerkasha project in Eritrea, operating and administrative expenses, working capital, and general corporate purposes. Specifically, Alpha plans a major 15,000-metre drilling program on its newly discovered and No. 1 priority Aburna gold prospect due to the extensive area of gold mineralization defined to date and positive drill results from the initial programs. Prospecting work consisting of soil sampling, channel and trench sampling has discovered a large area, measuring approximately six kilometres long by two kilometres wide, of anomalous gold values extending northeast from the historic Aburna gold mine. To date Alpha has drilled only 43 drill holes spread across this large area. Despite this small amount of drilling, results have been encouraging. The best results are summarized as follows:

  • Drill hole ABD-001: 20 m averaging 7.73 grams per tonne gold;
  • Drill hole ABR-005: 15 m averaging 5.85 g/t gold;
  • Drill hole ABR-008: 10 m averaging 5.24 g/t gold;
  • Drill hole ABR-018: 22 m averaging 4.50 g/t gold;
  • Drill hole ABR-037: 16 m averaging 14.07 g/t gold.

Note: For more details, see Alpha news releases dated June 27, 2022, Sept. 14, 2022, and Nov. 24, 2022.

More surface sampling work occurred in November and December, 2022, at Aburna with the aim of extending the mineralized envelope to the northeast and southwest by taking 202 soil samples and 3,071 rock chip samples from channels and trenches. Results from this work are expected later this month.

To assist in designing the drilling program at Aburna Alpha also plans a ground magnetics survey coupled with detailed structural mapping in next few weeks.

Completion of the private placement is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The TSX-V has not approved the offering price or the exercise price and these remain subject to change. The shares, warrants and the warrant shares will be subject to a statutory hold period of four months plus one day from the closing date, in accordance with applicable securities legislation.

It is expected that certain insiders of the corporation (as such term is defined under the policies of the TSX-V) may participate in the private placement. The corporation has received a binding commitment from Alpha Exploration, an insider of the corporation, for a subscription totalling $750,000 in the private placement, such subscription subject to the conditions outlined herein. The participation of insiders in the private placement will constitute a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The corporation intends to rely upon exemptions from the formal valuation and minority approval requirements of MI 61-101 based on a determination that the fair market value of the private placement, insofar as it involves the related parties, does not exceed $2.5-million.

About Alpha Exploration Ltd.

Alpha is an exploration company listed on the TSX-V under the symbol ALEX. The company is focused on the discovery of gold and base metals deposits in the highly prospective Arabian-Nubian shield, on either side of the Red Sea. Alpha currently holds a 100-per-cent interest in the large (771 square km) Kerkasha exploration licence in southwest Eritrea on which 20 prospects have been identified to date.

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