Taiga Gold Corporation: Announces Financing
Taiga Gold Corp. (CSE: “TGC”) (the “Company”) announces that it intends to carry out a non-brokered private placement to arms-length and non-arms-length investors and will be comprised of up to 2,500,000 non-flow-through units and 3,500,000 flow-through units for a total issuance of 6,000,000 units and gross proceeds of approximately CDN $1,150,000.Non-flow-through units will be sold at a price of $.18 CDN per unit, each unit consisting of a non-flow-through common share and one non-flow-through common share purchase warrant, each whole warrant exercisable at $.40 CDN for a 24 month period. Flow-through units will be sold at a price of $.20 CDN per unit, each unit consisting of a flow-through common share and a non-flow-through common share purchase warrant, each whole warrant exercisable at $.40 CDN for a 24 month period.
The common share purchase warrants are subject to an accelerated expiry at the option of the Company if the published closing trade price of the common shares on the TSX Venture Exchange is greater than or equal to $.50 for any 10 consecutive trading days, in which event the holder may be given notice that the warrants will expire 30 days following the date of such notice. The common share purchase warrants may be exercised by the holder during the 30 day period between the notice and the expiration of the common share purchase warrants.
A 7% commission or finder's fee may be paid to certain registered dealers or arms-length third parties involved in the financing.
Proceeds from the sale of units will be used to fund exploration of the company's various projects in Saskatchewan and for general working capital. Funds earmarked for exploration will qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for the 2018 taxation year.
Taiga was created through a plan of arrangement with Eagle Plains Resources Ltd. and owns 5 projects targeting gold in the area near the Seabee Gold Operation, owned and operated by SSR Mining Inc. (formerly Silver Standard Resources Inc.), (“SSRM”) (TSX: SSRM) (NASDAQ: SSRM). Taiga’s flagship property is named “Fisher” and is currently being explored by SSRM under option from Taiga (see details below). As announced by Eagle Plains on March 21st, 2018, SSRM is well underway on Phase 1 of an 18,000m drilling campaign within Fisher property boundaries and currently has two drills on site.
See Taiga project location map here.
Fisher Project Overview
The Fisher project is located 125 km east of La Ronge, Saskatchewan. SSRM is currently in the second year of a four-year option agreement whereby SSRM may earn up to an 80% interest in the 34,000 ha property by completing $4M in exploration expenditures and making $3.2M in cash payments to Taiga (see details below- all figures in Canadian dollars). The Fisher project is contiguous to the north, south and east with SSRM’s Seabee Gold Operation. As announced by Eagle Plains on March 21st, 2018, SSRM has commenced Phase 1 of an 18,000m drilling campaign within Fisher property boundaries, with two drills currently in operation.
See Fisher area location map here.
The 2017 surface exploration activity carried out by SSRM consisted of till sampling, soil geochemical sampling, geological mapping and prospecting. Results were encouraging, with numerous areas of elevated gold in soils documented within Fisher property boundaries. A cluster of elevated gold in soil anomalies correlate to areas of high strain and shearing, significant alteration and quartz veining that were identified during mapping. The anomalies also coincide with a bifurcation of the Santoy shear zone, with anomalous values following both branches of the structure.
To earn a 60% interest over four years, SSR Mining paid $100,000 on signing of the formal agreement, has agreed to complete $4,000,000 in exploration expenditures and make annual cash payments to Taiga of $75,000 for each of the remaining years of the option period. Once the 60% earn-in has been completed, SSRM has a 90-day, one-time option to earn an additional 20% interest (for a total of 80%) by making a cash payment of $3,000,000 to Taiga, at which time an 80/20 joint venture will be formed to further advance the property. Taiga’s parent company Eagle Plains Resources will retain a 2.5% Net Smelter Return (“NSR”), subject to reduction on certain claims by underlying NSR agreements. Eagle Plains’ NSR may be reduced by 1% at any time upon payment of $1,000,000 by the joint venture. In addition, Eagle Plains will receive advance royalty payments of $100,000 annually from the joint venture until commencement of commercial production.
About Taiga Gold Corp
Based in Cranbrook, B.C., Taiga Gold Corp. was created in April, 2018 by way of plan of arrangement and spun-off from Eagle Plains Resources Ltd. (TSX-V:EPL) on a one-for-two share basis to the shareholders of Eagle Plains. As part of the spinout transaction Eagle Plains currently holds approximately 19.9% of the total common shares of Taiga Gold Corp.
Taiga Gold Corp. will focus on the exploration and development of its gold projects located adjacent to SSR Mining’s Seabee Gold Operation and along the Tabbernor Fault structure in eastern Saskatchewan, a highly-prospective mining jurisdiction which was recently recognized by the Fraser Institute as the second best place in the world in terms of Investment Attractiveness. Throughout the exploration and development process, our mission is to help maintain prosperous communities by exploring for and discovering resource opportunities while building lasting relationships through honest and respectful business practices.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
For further information on TGC, please contact Mike Labach at
1 866 HUNT ORE (486 8673)
Email: info@taigagold.com or visit our website at http://taigagold.com
Cautionary Note Regarding Forward-Looking Statements
The CSE or any other regulatory body has not reviewed or approved the contents of this news release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming financings, 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.
Source: Taiga Gold Corp. (CSE:TGC)
