Homestake Closes First Tranche of Equity Funding; Reports on Exploration Program
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/18/12 -- Homestake Resource Corporation (TSX VENTURE: HSR)(FRANKFURT: B6IH) has closed the first tranche of its previously announced non-brokered private placement of 10 million Common flow-through shares and 10 million Units by issuing 2,700,000 flow-through shares and 1,917,500 non flow-through Units for gross proceeds of $1,058,500. Each flow-through share is priced at $0.25 per share and each non flow-through Unit is priced at $0.20 per Unit. Each Unit is comprised of one common share and one share purchase warrant, each whole warrant entitling the purchase of one common share at a price of $0.30 per share for 36 months.
The company intends to use the gross proceeds from the sale of the flow-through shares to fund Canadian exploration expenses, within the meaning of the Income Tax Act (Canada), with the company using its best efforts to ensure that such CEE qualify as flow-through mining expenditures for purposes of the Income Tax Act (Canada), related to the exploration during 2012-2013 of the company's Homestake Ridge and Kinskuch projects in British Columbia, Canada with expense renunciations to be issued on December 31, 2012.
All securities issued pursuant to this tranche of the private placement, including common shares, share purchase warrants and finder's warrants issued as finder's fees, carry a legend restricting trading of the securities until November 14, 2012. The private placement and finder's fees are subject to regulatory approval.
Exploration Program
The Company is in final preparations for the start of the 2012 exploration season at the Homestake Ridge project. Mobilization is scheduled for the last week of July, with drilling to start in early August and continue into the fall.
Drilling on the Homestake Ridge Project in 2012 will delineate the extent of mineralization discovered in 2011 at the South Reef deposit, which is located about 800 metres to the southwest of the Homestake Silver deposit. The planned holes will offset three holes from the 2011 program that tested a 75 metre strike-length of the mineralized trend to depths of 260 metres and intersected +30g/t gold in each hole, including a 3.1m interval averaging 30.8g/t Au and 3.3g/t silver within a 8.7 metre interval averaging 11.3g/t gold and 1.6g/t silver from drill hole HR11-232 (see NR-14-11).
Drilling will target much of a 1.2 kilometre strike length of this newly identified, mineralized zone, which represents the third high-grade gold/silver deposit discovered in this evolving district. Mineralization is open at depth and along the full strike-length of the target horizon, which is equal to the cumulative strike-length of the previously delineated Main Homestake and Homestake Silver deposits.
About Homestake
Homestake owns a 100 percent interest in the Homestake Ridge project, which is located in a prolific mineral belt in northwestern British Columbia. The project is being advanced as a potential high-grade underground mining operation with a current NI43-101 compliant Indicated Resource, at a 3.0g/t AuEq cut-off, of 191,000 oz gold and 1,350,000 oz silver (215,500 oz AuEq) plus an Inferred Resource of 530,000 oz gold and 13,470,000 oz silver (775,900 oz AuEq)(1). Two deposits have been delineated to date, with a third, South Reef, discovered late in 2011. Multiple exploration targets remain to be tested on the large 2585 hectare property. Homestake also holds an option to acquire the 623-square-kilometre Kinskuch project located adjacent to, and to the southeast of, Homestake's Homestake Ridge project. Homestake holds a 9.76 percent interest in Bravada Gold Corporation (TSX VENTURE: BVA), which is exploring 21 projects in Nevada.
ON BEHALF OF THE BOARD
Joseph A. Kizis Jr., President
1. The current estimate was prepared by Roscoe Postle Associates Inc.
(RPA). Mineral Resources on the Main Homestake deposit were estimated
previously in 2010 using a block model constrained by 3D wireframes of
the mineralized zones. Mineral Resources on the Homestake Silver deposit
were estimated in 2011 using a block model constrained by pierce points
projected to 2D surfaces. The Main Homestake block model comprised an
array of blocks measuring 5 m x 5 m x 5 m, with grades for Au, Ag, and
Cu interpolated using ID3 weighting. The Homestake Silver block model
comprised an array of blocks measuring 10 m x 10 m. At a 3.0g/t AuEq
cut-off, the models identified an indicated resource of 888,000 tonnes
averaging 6.7g/t Au, 47.2g/t Ag and 0.15% Cu and a cumulative inferred
resource of 4,060,000 tonnes averaging 4.3g/t Au, 158g/t Ag.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Bravo Gold Corp does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Homestake Resource Corporation
Liana Shahinian
1-888-456-1112 or 604-641-2773
liana@mnxltd.com
www.homestakeresource.com;www.manexresourcegroup.com
