Mr. Joseph Anthony Kizis Jr. reports
EQUITY METALS ANNOUNCES INCREASE TO PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT
Equity Metals Corp. is increasing the previously announced private placement and is now issuing up to a total of 15,714,285 units at a price of seven cents per unit for gross proceeds of $1.1-million. Each unit will consist of one common share and one share purchase warrant with each warrant exercisable for a period of three years after the closing of the offering for one common share at a price of 10 cents per common share.
The company will make a provision for an overallotment option (greenshoe) to allow a purchase of up to 10 per cent additional units beyond the number of units in this offering. Finders' fees and commissions may be paid by the company in relation to the units sold in this offering. The private placement is subject to TSX Venture Exchange approval.
Net proceeds will be used for costs associated with the proposed exploration program for the Silver Queen project in British Columbia and for general working capital.
The Silver Queen project currently contains a National Instrument 43-101 mineral resources estimate, using a $100 net smelter return cut-off, of:
- Indicated -- 244,000 ounces gold equivalent: 85,000 ounces gold, 5.2 million ounces silver, five million pounds copper, 17 million pounds lead and 114 million pounds zinc;
- Inferred -- 193,000 ounces AuEq: 64,000 ounces Au, 4.7 million ounces Ag, five million pounds Cu, 16 million pounds Pb and 819 million pounds Zn.
The company has received a five-year, area-based exploration permit for its 100-per-cent-owned Silver Queen Au-Ag project, located near Houston in the well-mineralized Skeena Arch region of B.C. Initial drilling on the property will focus on the systematic resource expansion on a historic high-grade precious-metal-enriched epithermal vein system as well as the identification of new mineral discoveries to further increase existing mineral resources noted herein. Three separate vein structures are targeted for exploration drilling in 2020, with the near- to mid-term objective of doubling the existing mineral resource on the property.
Silver Queen project background
The Silver Queen project is a premier gold-silver property with over 100 years of historic exploration and development located adjacent to power, roads and rail with significant mining infrastructure that was developed under previous operators Bradina JV (Bralorne mines) and Houston Metals Corp. (a Hunt Brothers company). The property contains a historic decline into the No. 3 vein, camp infrastructure and a maintained tailings facility.
The Silver Queen property consists of 45 mineral claims, 17 Crown grants and two surface Crown grants totalling 18,852 hectares with no underlying royalties. Mineralization is hosted by a series of epithermal veins distributed over a six-square-kilometre area. Most of the existing resource is hosted by the No. 3 vein, which is traced by drilling for approximately 1.2 km to the southeast where it transitions into the NG-3 vein close to the Itsit porphyry area. Over 20 different vein structures have been identified on the property, forming an extensive network of zoned Cretaceous- to Tertiary-age epithermal veins. The property remains largely underexplored.
Robert Macdonald, MSc, PGeo, is vice-president of exploration of Equity Metals and a qualified person as defined by National Instrument 43-101. He is responsible for the supervision of the exploration on the Silver Queen project and for the preparation of the technical information in this disclosure.
About Equity Metals Corp.
Equity Metals is a Manex Resource Group company, which provides exploration, administration and corporate development services for Equity Metals' two major mineral properties, the Silver Queen Au-Ag-Zn-Cu project, located in central B.C., and the Monument Diamond project, located in Lac De Gras, NWT.
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