Derek Wood reports
TOCVAN PROVIDES UPDATE ON WARRANTS EXERCISED AND CLOSING OF UNIT PRIVATE PLACEMENT
Since the beginning of the fiscal year, Sept. 1, 2020, Tocvan Ventures Corp. has had a total of 2.63 million previously issued warrants and options exercised for a total gross proceeds of $650,000.
In addition, the company is pleased to announce that it has closed its previously announced non-brokered
private placement of units for gross proceeds of $746,801. The offering consisted of the issuance of an aggregate of 1,244,668 units at a price of 60 cents per unit. Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each full warrant entitles the holder thereof to acquire one common share at a price of 75 cents, for a period of 18 months from the closing of the offering.
In connection with the offering, the company paid aggregate cash commissions to arm's-length finders that assisted with the offering of approximately $49,960 and issued 83,267 finder warrants. Each finder warrant is exercisable at a price of 60 cents per common share for a period of 18 months from the closing of the offering.
The company currently has 27,849,179 common shares outstanding.
Discussion on use of proceeds
Proceeds from the offering will be used to advance the Pilar gold-silver project in Sonora, Mexico. A phase 2 drill program is due to commence by mid-April and will be conducted in two stages. Stage 1 will continue to expand the Main zone and build on the success of the phase 1 drill program, which is highlighted by
94.6 metres at 1.6 grams per tonne gold, including 9.2 m at 10.8 g/t Au and 38 g/t silver. Stage 2 will begin to test the new property-wide targets identified during the 2021 surface exploration program, including the new Triple vein zone and 4 Trench extension. The company is also actively evaluating other gold-silver projects in Sonora with similar potential to Pilar.
Tocvan remains disciplined in its approach to minimize share dilution and maximize shareholder value with the systematic advancement of the Pilar gold-silver project. The company has recently seen the majority of outstanding warrants exercised from the Feb. 13, 2020, private placement. This combined with the closing of today's private placement will give the company sufficient capital to explore Pilar with multiple drill programs planned through to the end of 2021.
Derek A. Wood, president and chief executive officer, commented: "We are extremely pleased with the progress of Pilar, especially with our recent drilling success and we look forward to an active year of drilling as we continue to unlock the property-wide potential of Pilar. We remain focused on maximizing shareholder value, with the closing of the private placement we now have the capital to not only advance Pilar but evaluate new gold assets in Mexico to add to the company's growing portfolio."
About the Pilar property
The Pilar gold-silver property is interpreted as a structurally controlled low sulphidation epithermal project hosted in andesite and rhyolite rocks.
Three zones of mineralization have been identified in the northwest part of the property from historic surface work and drilling and are referred to as the Main zone, North Hill and 4 Trench. Structural features and zones of mineralization within the structures follow an overall northwest-southeast trend of mineralization. Over 19,200 metres of drilling have been completed to date. Significant results are highlighted below from previous operators:
- 17,700 m of historic core and RC drilling; highlights include (all lengths are drilled thicknesses):
- 0.8 g/t Au over 61 m;
- 53.5 g/t Au and 53 g/t Ag over 16.5 m;
- 9.6 g/t Au over 13 m;
- 10.2 g/t Au and 46 g/t Ag over nine m;
- 2,650 m of surface and trench channel sampling; highlights include:
- 55 g/t Au over three m;
- 28.6 g/t Au over six m;
3.4 g/t Au over 50 m;
- Soil and rock sampling results from undrilled areas indicate mineralization extends toward the southeast from the Main zone, North Hill zone and 4 Trench zone.
Brodie A. Sutherland, PGeo, vice-president, exploration, for Tocvan Ventures and a qualified person (QP) as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.
About Tocvan Ventures Corp.
Tocvan is a well-structured exploration mining company. Tocvan was created to take advantage of the prolonged downturn in the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels it can build upon previous success. Tocvan Ventures currently has approximately 24.5 million shares outstanding and is earning into two exiting opportunities: the Pilar gold project in the Sonora state of Mexico and the Rogers Creek project in Southern British Columbia. Management feels both opportunities represent tremendous opportunity.
We seek Safe Harbor.
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