Vancouver, BC / ACCESSWIRE / July 11 2014 / Emgold Mining Corporation ("Emgold" or the "Company") announces that it intends to conduct a non-brokered private placement to raise gross proceeds of CDN$250,000. This private placement is the third and final tranche of a previously announced CDN $1,000,000 financing with Rawhide Mining LLC ("RMC"), as outlined in November 14, 19, 26, and December 28, 2012 and January 30, 2013 press releases. The proceeds from this financing will be used to acquire the remaining 25% interest in the Buckskin Rawhide East Property (the "Property") in Nevada and for general working capital. Upon transfer of title, Emgold will obtain a 100% interest in the Property and subsequently lease the Property to RMC.
The private placement will involve the issuance of 5,000,000 units ("Units") to RMC at a price of CDN$0.05 per Unit. Each Unit consists of one common share (a "Share") of the Company and one half of one non-transferable share purchase warrant. Each full warrant will entitle RMC to purchase, for a period of 24 months, one additional Share at a price of CDN$0.10. The Shares are subject to a minimum hold period of four months plus one day. No finder's fees were paid as part of this private placement.
The private placement is subject to acceptance of the TSX Venture Exchange. At the conclusion of this financing, RMC will own 17.3 million shares of the Company, or approximately 22% of the issued shares on a non-diluted basis. The Company received shareholder approval for RMC acquiring in excess of 20% ownership pursuant to the financing in December of 2012.
About the Buckskin Rawhide Property
The Buckskin Rawhide Property is located in the Rawhide Mining District, about 40 miles southeast of Fallon. It consists of 52 unpatented mineral lode claims totaling approximately 835 acres. It contains occurrences of gold and silver mineralization and was sampled and drilled historically by Kennecott Minerals Company ("Kennecott") and others. It is surrounded by RMC's Denton-Rawhide Mine and the Regent Property, both owned by RMC.
The Denton-Rawhide Mine was owned and operated by Kennecott from 1988 to 2010. In 2010, the Mine was acquired by RMC, who continued to produce gold from historic heap leach pads. In 2012, RMC recommenced production from the mine. From 1990 through 2012, the Denton-Rawhide Mine produced 1.6 million ounces of gold and 13.5 million ounces of silver (Source: Nevada Bureau of Mines and Geology Special Publication MI-2012). It should be noted that proximity of the Property to other exploration properties in the area does not mean a resource will be identified or delineated on the Property. However, the presence of similar geology and structures on the three properties does increase the potential for exploration success.
Historically, based on internal records, Kennecott drilled over 80 reverse circulation holes on the Buckskin-Rawhide East Property. Those results indicated potential for delineation of both high grade mineralized gold/silver veins and bulk minable disseminated gold/silver zones, which led to Emgold originally optioning the Property in 2009. Emgold reviewed historic data, conducted geological mapping and field sampling, and subsequently discovered the Chicago Mountain/Chicago Gulch, Black Eagle, and Buckskin Mountain exploration targets. Information on the Property can be found at www.emgold.com.
The scientific or technical information contained in this news release has been reviewed and approved by Mr. Robert Pease, P.Geo., Chief Geologist of the Company, a Qualified Person as defined in National Instrument 43-101.
On behalf of the Board of Directors
David G. Watkinson, P.Eng.
President & CEO
For further information please contact:
Tel: (530) 271-0679
Email: [email protected]
This release was prepared by the Company's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information on the Company, investors should review the Company's filings that are available at www.sedar.com or the Company's website at www.emgold.com. This news release includes certain statements that are "forward-looking statements" within the meaning of applicable securities laws including statements regarding the private placement and use of proceeds thereof, the Property transaction, exploration potential, and other statements. Forward-looking statements are based on certain assumptions that the counterparties to the proposed transactions act in good faith, that financing is available on acceptable terms, that Emgold receives TSX Venture Exchange acceptance for the transactions. 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 the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include the failure to obtain the required financing, failure of counterparties to perform their obligations or commitments, failure to obtain the required permits, and failure to achieve exploration success. Other risk factors include changes in metal prices, the price of the Company's shares, the costs of labour, the cost of equipment, the cost of supplies, approvals by federal, state, and local agencies, permitting delays, legal challenges to permits, general economic, market or business conditions, and other factors beyond the control of the Company. The Company does not intend to update or revise any forward-looking information whether as to a result of new information, future events or otherwise, except as required by law.
THIS NEWS RELEASE IS INTENDED FOR DISISTRIBUTION IN CANADA ONLY AND IS NOT FOR AUTHORIZED DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
SOURCE: Emgold Mining Corporation