Bam Bam Announces $2 Million Equity Facility with Alumina Partners
Vancouver, July 28, 2020 - Bam Bam Resources Corp. (CSE: BBR) (OTC PINK: NPEZF) (FSE: 4NPA) ("Bam Bam" or the "Company") is pleased to announce it has entered into a non-exclusive agreement on a draw-down equity financing facility (the "Investment Agreement") with Alumina Partners (Ontario) Ltd. ("Alumina"), an affiliate of New York-based private equity firm Alumina Partners, LLC.
The Investment Agreement will provide the Company with up to C$2.0 million over a 24-month period to finance its exploration on Majuba Hill Property and on-going acquisition of precious metal assets in Nevada. The Investment Agreement is structured to provide Bam Bam with relatively quick access to private placement financing as and when required.
The private placement will fund a three hole/4,500-foot (1,371 m) drill core program to test the deep sulfide target zone. Outstanding drill results from core hole MHB-2 in the Known Oxide Zone and the discovery of extensive oxide copper mineralization on the surface at the Majuba Extension Zone has greatly increased the possibility that significant sulfide copper mineralization extends up to 2500 feet (762m) towards the southwest and towards the east. MHB-2 was in the oxidized zone and it ran:
- 146 feet (44.5m) @ 1.41%Cu and 97.6 ppm Ag from 0 to 146 feet
Historic hole MMX-24 drilled the highest grade copper interval in the sulfide zone. The hole drilled 1200.5 feet (365.9 m) towards the southwest and intersected copper in zones with disseminated chalcopyrite and bornite and as stockwork veins. All previous historic deep holes drilled northward. The entire hole assayed 0.17% Cu and the bottom of the hole ran:
- 370 feet (112.5m) @ 0.62%Cu and 11.8 ppm Ag from 730 to 1100 feet
"This private placement provides Bam Bam with capital to expand and accelerate the next phase of our planned exploration program on Majuba Hill Property in Nevada," stated David Greenway, President and CEO of Bam Bam. "If the deep core holes intersect copper in sulfide stockwork mineralization like the intersections in MMX-24, it will establish Majuba Hill as a major copper-silver-gold porphyry project in Nevada."
The planned core holes will test three different targets in the sulfide zone:
- PDHS-1 steps out 500 foot (152m) west of the chalcopyrite and bornite zone in MMX-24.
- PDHS-2 steps out 1600 foot (488m) southwest of the zone in MMX-24 and will test the large induced polarization-chargeability anomaly associated with the copper mineralization.
- PDHS-3 will test the sulfide zone beneath the historic underground workings and the Known Oxide Copper Mineralization.
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/6332/60627_31c4320824141996_001full.jpg
Pursuant to the terms of the Investment Agreement, Bam Bam has the right to draw-down capital at will, on an as-needed basis and subject to acceptance by Alumina Partners, in a series of separate equity private placement tranches of up to CAD $250,000 (each, a "Tranche") over a 24-month period, in accordance with the policies of the Canadian Securities Exchange (the "CSE").
Each Tranche will be comprised of units (the "Units"), each Unit consisting of one common share in the capital of the Company (each, a "Share") and one common share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder to acquire one additional Share for a period of twenty for (24) months from the date of issuance.
The Units will be issued at a discount ranging between 15% to 25% of the closing Market Price (the "Price") of the Shares at the time of the draw-down, with each Tranche occurring exclusively at the option of the Company, throughout the Twenty four (24) month term of the Agreement. The Warrants will be issued at a 25% premium over the market price of the Shares and will have a term of three years. There are no standby charges or other upfront fees associated with the Investment Agreement. Each tranche of Units issued under the Investment Agreement will be subject to the acceptance of the CSE, and the securities issued will be subject to the customary 4-month hold period.
"Alumina is delighted to support Bam Bam as they progress work on their promising Majuba Hill property," said Adi Nahmani, Managing Member of Alumina. "The favorable regulatory climate of Nevada and the attractiveness of counter-inflationary precious metals exposure in the present macroeconomic landcape combine to make the value proposition of Bam Bam's accelerated exploration of Majuba Hill very interesting."
About Majuba Hill Property
The Majuba Hill Property encompasses 4,822 acres of surface and mineral rights that includes 3 patented lode mining claims and 632 acres of privately owned surface and minerals. The property is easily accessed via 23 miles of well-maintained dirt roads leading from U.S. Interstate 80.
Qualified Persons
The scientific and technical information contained in this news release has been reviewed by E.L. "Buster" Hunsaker III, CPG 8137, a non-independent consulting geologist who is a "Qualified Person" as such term is defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43- 101").
About Bam BAM Resources Corp.
Bam Bam Resources Corp. (CSE: BBR) (OTC PINK: NPEZF) (FSE: 4NPA) is engaged in the identification, review and acquisition of latter stage copper and copper/gold assets. With its flagship project being Majuba Hill copper gold project located 156 miles outside Reno, Nevada, USA. Management has been mandated to focus on safe, mining friendly jurisdictions and government regulations supportive of mining operations.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
On Behalf of the Board of Bam Bam Resources Corp.
"David Greenway"
David C. Greenway
President & CEO
For further information, please contact:
E:dg@bambamresources.com
P: (604) 318-0114
Forward-Looking Statements
This news release contains certain statements that may be deemed "forward-looking" statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Bam Bam Resources Corp. 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 may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Bam Bam Resources Corp. management on the date the statements are made. Except as required by law, Bam Bam Resources Corp. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/60627
