Sniper Resources Announces Private Placement
Vancouver, June 30, 2015 - Scott Baxter, President and CEO of Sniper Resources Ltd. (TSX-V: SIP) ("Sniper" or the "Company") is pleased to announce:The Offering
Sniper is proceeding with a non-brokered private placement of up to C$500,000 comprised of up to 10,000,000 units at a price of $0.05 per unit. Each unit will be comprised of one common share and one share purchase warrant, with each share purchase warrant exercisable for a term of two years at an exercise price of $0.10 per Warrant Share. Commissions and/or finder's fees may be paid in connection with this placement. The placement is subject to regulatory approval.
The net proceeds of the placement will be used for exploration on the Company's Weepah gold project, Nevada and for general corporate purposes. See details below.
Commentary
"We value our shareholders. Recognizing that you have been loyal supporters for many years, we have structured this placement using the new Existing Shareholder Exemption to enable you to participate" said Sniper president Scott Baxter. "With Scorpio Gold's Mineral Ridge mine, which is just to the south of Weepah, expected to produce 40-45,000 ounces this year, and Columbus Gold on its Eastside Project, which is just north of Weepah, beginning a 175 hole (45,000 metres) drilling program the time is right for a resumption of drilling at Weepah. (See map below for relative locations of Mineral Ridge and Eastside to our Weepah property.) I encourage our shareholders and other interested investors go to our website www.sniperresources.com for more information including all historical news releases. Lastly, I urge our shareholders and other interested market participants to seriously consider investing in this private placement. Please read the Offering details below and the specific subscription instructions in the section below titled 'How to Participate'."
About the Offering
The Offering will be conducted by the Company using a recently approved special exemption for existing shareholders (the "Existing Shareholder Exemption" as described in Multilateral CSA Notice 45-313 - Prospectus Exemption for Distributions to Existing Security Holders) as well as the 'accredited investor' and 'eligible investor' exemptions (National Instrument 45-106 - Prospectus and Registration Exemptions "NI 45- 106"), and other applicable exemptions available to the Company. The Existing Shareholder Exemption is available to shareholders residing in all Canadian provinces. Subscriptions may be accepted from shareholders outside of Canada with evidence there is a comparable or otherwise applicable exemption permitting the subscription in that jurisdiction.
The Offering is available to all shareholders of the Company as at June 30, 2015 (the "Record Date") who are eligible to participate under the Existing Shareholder Exemption. Any person who becomes a shareholder of the Company after the Record Date is not permitted to participate in the Offering using the Existing Shareholder Exemption but other exemptions may still be available to them. Shareholders who became shareholders after the record date should consult their profession advisors when completing their subscription form to ensure that they use the correct exemption.
There are conditions and restrictions when relying upon the Existing Shareholder Exemption, namely, the subscriber must: a) be a Sniper shareholder on the Record Date, b) be purchasing the Units as a principal, i.e. for their own account and not for any other party, and c) may not purchase more than $15,000 value of securities from Sniper in any twelve month period. There is one exception to the $15,000 subscription limit. In the event that a subscriber wants to purchase more than $15,000 value of securities then they may do provided they have first received 'suitability advice' from a registered investment dealer. In this case subscribers will be asked to confirm the registered investment dealer's identity and employer.
The Offering will remain open 5:00 PM (Pacific Time zone) on July 30, 2015 subject to earlier cut-off if the Offering is over-subscribed or in the event of a material change in the affairs of the Company. Subscriptions will be accepted by the Company on a 'first come, first served' basis. Therefore, if the Offering is over-subscribed it is possible that a shareholder's subscription may not be accepted by the Company even though it is received within the Offering period. Additionally, in the event of an imbalance of large subscriptions compared to smaller subscriptions management reserves the right in its discretion to reduce large subscriptions in favour of smaller shareholder subscriptions. A subscription will be deemed to be received by the Company when a completed subscription form together with payment of the subscription price has been received by the Company.
The Offering may be closed in one or more tranches as subscriptions are received. There is no minimum Offering amount.
All securities issued will be subject to a four (4) month hold period from the date of closing. The Offering is subject to the approval of the TSX Venture Exchange.
Commissions and/or finder's fees payable in shares of the Company may be paid in respect of this Offering.
Use of Proceeds
The net proceeds received from the Offering after payment of issue costs and finder's fees/commissions, if any, will be used for the following corporate purposes:
- a)to pay accounts payables of approximately $100,000,
- b)to conduct a six-hole Phase I drilling program on the Company's Weepah Gold Project, Nevada approximately $100,000,
- c)to conduct a twelve-hole Phase II drilling program on the Company's Weepah Gold Project, Nevada approximately $200,000, and
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d)for general working capital purposes including general and administrative expenses approximately $100,000.
If the Offering is not fully subscribed then management of the Company will determine the allocation of net proceeds amongst the above corporate purposes in the best interests of the Company.
How to Participate in the Private Placement
To participate in this private placement shareholders and interested investors must complete the applicable subscription form and return the completed subscription form plus a certified cheque or bank draft for the total purchase price payable to Sniper Resources Ltd. at 4908 Pine Crescent, Vancouver, B. C. V6M 3P6. It is also possible to wire funds and those details are provided within the subscription form.
Subscription forms are available for download from the Company's website www.sniperresources.com. See the heading 'News' on the home page and go to the drop down box 'Subscription Agreements and Instructions for Completion'.
As previously mentioned, subscriptions will be accepted on a 'first come, first served' basis as determined by when subscriptions actually arrive in the office so shareholders and interested investors are encouraged to return completed subscriptions promptly using commercial couriers or priority post.
About the Weepah Gold Property
In June, 2014 Sniper converted its deal with Columbus Gold Corp. ("Columbus") for the 66 claim Weepah Gold Property, Nevada, ("Weepah") from an option to a firm purchase agreement. Sniper issueed 7,647,503 shares to Columbus increasing its total to 12,785,503 shares (19.99%) and vested Sniper's initial 50.01% interest in Weepah. On July 1, 2017 Sniper will issue to additional shares to Columbus to top it up to 19.99% of Sniper's issued capital to acquire the final 49.99% ownership of Weepah.
Exploration and Evaluation
The Weepah region production was mined the 1930's and later in the 1980's. The principal drill targets are where gold occurs as replacements in sanded, or lightly silicified limestone, exposed in small outcrops.
Recent Exploration
The property was drilled in 2011 by Columbus with significant gold intercepts. In 2012 Sniper drilled 20 holes (4,520') with encouraging results as listed in the Table below.
| Drill Hole | From (ft) | To (ft) | Thickness (ft) | Average Grade (opt Au) | Average Grade (g/T Au) |
| WP-19 | 0 10 35 40 80 | 90 25 60 45 90 | 90 including 15 and 25 including 5 and10 | 0.034 0.049 0.062 0.156 0.040 | 1.168 1.696 2.112 5.340 1.367 |
| WP-20 | 0 40 55 135 | 155 75 60 155 | 155 including 35 including 5 and 20 | 0.013 0.046 0.636 0.008 | 0.455 1.574 21.800 0.260 |
| WP-21 | 0 15 40 80 | 125 30 60 115 | 125 including 15 and 20 and 35 | 0.035 0.111 0.083 0.016 | 1.183 3.802 2.832 0.564 |
| WP-22 | 45 60 75 90 | 165 65 115 115 | 120 including 5 and 40 and 25 | 0.007 0.055 0.010 0.011 | 0.245 1.875 0.345 0.392 |
| WP-23 | 115 115 140 175 | 190 125 155 185 | 75 including 10 and 15 and 10 | 0.010 0.020 0.012 0.016 | 0.340 0.696 0.416 0.554 |
2015 Exploration Plans
A 2015 program of up to 30 holes in three phases is planned subject to available financing. A formal Notice of Drilling Operations has been submitted to the US Bureau of Land Management for Phase I comprised of six Reverse Circulation drill holes of up to 2000' total from three different drill sites on the property. Phases II and III programs are planned to follow-up on positive results as warranted. A drill rig and related equipment has been secured.
About Sniper Resources Ltd.
Sniper Resources Ltd. is engaged in the identification, acquisition and exploration of gold properties in the State of Nevada, USA. Sniper owns a 100% interest in the Weepah gold property located approximately 16 miles south of Columbus Gold's Eastside deposit in Nevada. (see location map below) The highest assay from prior drill programs on Weepah is 21.80 grams/tonne (0.636 oz Au/ton) over a 1.5 metre (5 feet) interval, and the longest continuously mineralized interval was 47.2 m (155 feet).
All scientific and technical information contained in this news release has been reviewed and approved by Douglas H. McGibbon, M.S.(Geol.), P. Geo., who is a "qualified person" within the meaning of National Instrument 43-101.
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For further information about Sniper Resources and its Weepah Gold Project please contact Mr. Scott Baxter, President and CEO at 604-263-5614 or 888-737-2454, or via email scottbax@telus.net. To subscribe to Sniper's newsletter, The Sniper News, email us at infoatsniperresources@gmail.com. Please visit the Sniper Resources Ltd. website at www.sniperresources.com
Sniper Resources Ltd.
Scott Baxter
President and CEO
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Neither the 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.
