Ms. Marcy Kiesman reports
DURANGO ANNOUNCES PRIVATE PLACEMENT AND PREPARES LIMESTONE SITE FOR DRILLING
Further to the news release of Oct. 7, 2019, Durango Resources Inc. is in the process of obtaining drill quotes for its limestone unit No. 5 at Mayner's Fortune in Northern British Columbia.
The purpose of the program is to test limestone unit No. 5 for depth and limestone quality while continuing further mapping and exploration on the property to obtain more clarity on the potential size and scale of the limestone units and exploring proximal copper occurrences. To finance the program, Durango is undergoing a non-brokered private placement financing for gross proceeds of up to $450,000.
The financing includes:
A flow-through component, which is composed of up to 1,875,000 flow-through units at a price of eight cents per flow-through unit for gross proceeds of up to $150,000: Each flow-through unit is composed of one flow-through common share and one non-flow-through share purchase warrant. Each such warrant is exercisable for one non-flow-through common share at an exercise price of 12.5 cents for a term of 24 months after the closing.
non-flow-through component, which is composed of up to five million non-flow-through units at a price of six cents per non-flow-through unit for gross proceeds of up to $300,000: Each non-flow-through unit is composed of one share and one-half of a non-flow-through warrant. Each whole warrant will be exercisable for one share at an exercise price of 12.5 cents for a term of 36 months after the closing.
The flow-through shares will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the
(Canada) and, more specifically, B.C. flow-through mining expenditures as defined in Section 4.841 of the
Income Tax Act
The proceeds raised from the flow-through component will be used for exploration work in British Columbia on the newly expanded Mayner's Fortune property and other Canadian exploration expenses (as defined thereof in Subsection 66.1(6) of the
Income Tax Act
(Canada)), with the company using its best efforts to ensure that such Canadian exploration expenses qualify as a flow-through mining expenditure for purposes of the
Income Tax Act
The proceeds raised from the non-flow-through component will also be used for exploration work on the Mayner's Fortune property, as well as general working capital.
The company has closed the first tranche of the financing, which includes 625,000 flow-through units for gross proceeds of $50,000. All securities issued pursuant to the financing are subject to final approval of the TSX Venture Exchange and are subject to a four-month hold period.
Marcy Kiesman, chief executive officer of Durango, stated: "At Mayner's Fortune, we are looking for large-scale limestone potential to potentially increase the value of the asset and determine product usability. Durango obtained a permit for drilling and a bulk-tonnage permit of up to 10,000 tonnes on limestone unit No. 5, which is accessible by a logging road. We are strategically positioned for the [liquefied natural gas] boom in Kitimat and are excited to be a part of the ongoing northern development. Many people are not aware of the massive scale and size of the LNG project in Kitimat and the amount of development which is under way."
Kitimat's LNG facility is already impacting the local housing market
as the site development continues.
It is expected that additional tranches of the financing will close in the near future. Further details will be released as they become available.
About Durango Resources Inc.
Durango is a natural resource company engaged in the acquisition and exploration of mineral properties. The company is positioned for discovery with a 100-per-cent interest in a strategically located group of properties in the Windfall Lake gold camp in the Abitibi region of
We seek Safe Harbor.
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