Harvest Gold Receives Drill Permits for Phase 1 Diamond Drill Program at Cerro Cascaron and Announces Non-Brokered Private Placement
Harvest Gold's President and CEO Rick Mark states: "We are very pleased to have received the drill permits for our initial drill program at Cerro Cascaron. I would like to thank our shareholders for their patience, as we did expect the permits to be awarded earlier in the year, but now look forward to working with our Joint Venture partner Evrim Resources Corp. ("Evrim") (EVM: TSXV) to get our first drill campaign started as soon as possible."
Predicated on the success of the Phase 1 program, Harvest and Evrim contemplate a multiple phase drill program at Cerro Cascaron. A Phase 2 drill program, consisting of an additional 3,700 metres will be considered in the Dolores, San Pedro, El Salto, Cascarita, La Puerta, Carabina and Julieta areas, in addition to pursuing drill successes from Phase 1.
The Cerro Cascaron project covers 69 square kilometres in a historic Colonial-era mining district in the prolific Sierra Madre Occidental ("SMO") precious metals belt of western Chihuahua State. Harvest Gold has the right to earn up to an 80% interest in Cerro Cascaron from Evrim by incurring certain exploration expenditures, making cash and share payments and delivering a NI 43-101 compliant feasibility study.
Harvest and Evrim have negotiated a six-month extension to December 31, 2018 for the completion of Harvest's first-year exploration commitment and cash payment on Cerro Cascaron. Harvest will pay $30,000 cash to Evrim upon signing the extension. All other obligations under the option agreement remain the same.
The Company proposes to raise up to $1.8 million through a non-brokered private placement of up to 36 million units at price of $0.05 per unit. Each unit will consist of one common share and one transferable common share purchase warrant, each warrant entitling the holder to acquire one additional common share of the Company at a price of $0.10 per common share for two years from the date of issuance.
The warrants will be subject to an acceleration clause whereby in the event that the closing price of the Company's common shares on the TSX Venture Exchange is CAD$0.17 or greater per share during any 20 non-consecutive trading day period at any time, the warrants will expire at 4:00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to the warrant holders.
Finder's fees may be payable in cash and warrants in accordance with the policies of the TSX Venture Exchange.
The Company plans to use the proceeds of the private placement for the Phase 1 Drill program and additional regional exploration at Cerro Cascaron and for general working capital purposes.
About the Cerro Cascaron Project
The Cerro Cascaron property hosts a low to intermediate sulphidation epithermal gold bearing system and includes a high-grade gold vein field measuring approximately 18 square kilometres in area on the eastern third of the property. Veining has been mapped on a cliff face for over 900 vertical metres, with classic textural evidence of multiple phases of hydrothermal boiling accompanying the highest gold grades. These boiling zones have been established in the upper 380 metres of the vein field. Beneath the boiling zones, silver- and base metal-rich veins and breccias provide additional exploration targets.
Cerro Cascaron's setting and mineralization is similar to many epithermal deposits in the Sierra Madre Occidental, including Fresnillo Plc's La Cienega Mine in Durango, Goldcorp's past producing El Sauzal gold mine and further south, First Majestic's San Martin de Bolanos silver mine in Jalisco State. The property is approximately 55 kilometres southeast of Goldcorp Inc.'s past-producing El Sauzal gold mine and is one of the few unexplored and undrilled opportunities in the region.
Readers should refer to Evrim's press releases dated June 8 and August 17, 2016 and Harvest Gold press releases dated June 8 and 15 and October 5 and 18 and November 27, 2017 for a full description of previous exploration results.
Quality Assurance/Quality Control
Mr. Warren Bates, P. Geo (APGO#0211), the Company's Director of Property Investigation, is the Qualified Person for this press release for the purposes of National Instrument 43-101, and has reviewed and approved the technical information herein.
About Harvest Gold
Harvest Gold is a gold-focused mineral exploration company with an experienced board of directors and management whose collective geological and financing experience exceeds 200 years. Harvest also holds three fully registered mineral concessions on properties in the Republic of Suriname: the Goliat-Tibiti, Gonini River and Oelemari concessions.
About Evrim Resources
Evrim Resources is a mineral exploration company whose goal is to participate in significant exploration discoveries supported by a sustainable business model. The Company is well financed, has a diverse range of quality projects and a database in Mexico and portions of the southwestern United States. The existing projects, and generation of quality exploration targets and ideas, are advanced through option and joint venture agreements with industry partners to create shareholder value. Evrim's business plan also includes royalty creation utilizing the Company's exploration expertise and existing projects.
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO
Harvest Gold Corp.
For more information please contact:
Rick Mark or Jan Urata
@ 604.682.2928 or email@example.com
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
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