Mr. Brian Miller reports
ASTRA EXPLORATION CLOSES $1M PRIVATE PLACEMENT WITH PARTICIPATION FROM PETER MARRONE AND MICHAEL GENTILE; MARRONE INCREASES OWNERSHIP
Astra Exploration Inc. has completed a non-brokered private placement of 9,090,910 units at a price of 11 cents per unit for gross proceeds of $1-million.
The offering consisted of 9,090,910 units at 11 cents per unit, with each unit consisting of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at an exercise price of 15 cents for a period of 24 months from the date of closing.
There were no commissions or finder's fees paid.
The company is pleased to report participation from Peter Marrone and Michael Gentile:
- Mr. Marrone subscribed for 4,090,909 units and now owns approximately 16.2 per cent of Astra on a fully diluted basis.
- Mr. Gentile, CFA, subscribed for one million units and now owns approximately 17 per cent of Astra on a fully diluted basis.
Chief executive officer Brian Miller commented:
"It is a great endorsement to have the continued support of investors who understand the potential at Pampa Paciencia, including Mr. Gentile, Mr. Marrone, and former management of Yamana who are familiar with El Penon and the shared similarities. Mr. Marrone's understanding of Pampa Paciencia is well aligned with that of the company, and we are pleased that he's more than doubled his interest with this financing."
Mr. Miller continues:
"Pampa Paciencia contains widespread mineralized float samples and several kilometres of discrete linear magnetic features -- features that are very similar to those which were instrumental in discovering the veins we drilled last season. The new discovery of mineralization in a rhyolite, if following the El Penon analogue, could be an indicator of higher precious metal grades. Given this and the facts that the entire project is covered by a thin layer of sediment and has never been systematically explored, it is reasonable to expect there to be several kilometres of mineralized veins yet to be discovered in what might be best described as an emerging epithermal district. What's more, the systematic and methodical approach taken by Astra's geologists has been effective, cost-efficient and has potential to add tremendous value."
Mr. Marrone commented:
"My interest goes beyond the exploration prospects which are impressive. I am looking at this with these questions in mind: is this or can it become a mine, and if so, what would a developer of that mine want to consider? Multiple veins with kilometres in strike length with mineralization in settings supporting higher grade and close to each other will definitely be factors a developer of a mine would take into account. I am more convinced now than ever that this is incontrovertible evidence of a mineralized system of epithermal veins and the proceeds of this financing will allow the company to further determine size, scale and grade prospects."
The company is planning a trenching program to commence in the coming weeks to confirm and define newly discovered epithermal veins. In Q4 of 2022, company geologists discovered approximately 2,000 metres of vein subcrop (near-surface veins covered by thin sediment layer) and surface float containing gold and silver with grades up to 5.33 grams per tonne gold equivalent. This new discovery is located on the western side of the project, approximately five kilometres west of the phase I and II drill programs. For more information see the Jan. 25, 2023, news release.
Prospectors & Developers Association of Canada -- PDAC participation
Astra Exploration will be participating at the Prospectors & Developers Association of Canada (PDAC) Conference from March 5 to 8 held in Toronto, Canada. Please note the company's updated booth location No. 2310.
About Pampa Paciencia
Pampa Paciencia is a 3,840-hectare road-accessible, low-sulphidation epithermal (LSE) gold-silver project located within an active mining district less than 15 kilometres from two major mines (Sierra Gorda and Spence) and about five kilometres from the Faride LSE mine.
Astra has completed drilling, mapping and sampling, geophysical surveys, and localized trenching at the Pampa Paciencia project, and in doing so has defined a vein boulder (float) field over approximately 75 per cent of the project area. The veins do not outcrop as the majority of the project area is covered by a thin layer of gravels and caliche but the vein float can be used to identify areas of high prospectivity.
Use of proceeds and resale restrictions
The net proceeds from the offering will be used to finance exploration activities and for general working capital purposes.
The common shares and purchase warrants issued in this offering will be subject to a statutory hold period of four months plus one day from the date of issuance. Some securities issued in this offering may be subject to additional restrictions. The offering is subject to TSX Venture Exchange approval.
Certain directors and officers of the company have participated in the offering. Participation of insiders of the company in the offering constitutes a related party transaction as defined under Multilateral Instrument 61-101. The issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to subsection 5.7(b) of MI 61-101.
About Astra Exploration Inc.
Astra Exploration is an exploration company based out of Vancouver, B.C. Astra is engaged in the acquisition, exploration and development of epithermal gold-silver properties in Chile and is building a portfolio of high-quality projects. Astra's current focus is the development of the Pampa Paciencia project.
The technical data and information as disclosed in this news release have been reviewed and approved by Darcy Marud. Mr. Marud is a practising member of the Association of Professional Geoscientists of Ontario and is a qualified person as defined under the terms of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
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