Jul 23 2015
Kapuskasing Gold Corp. (the "Company" or "Kapuskasing") reports that it has completed channel sampling at its Rollo property in the area of the high gold grade sample (see news release June 11, 2015, "Kapuskasing Gold Samples up to 11.5 g/t at Rollo - Airborne to be Flown at Borden North").
The property is located in the west end of the Swayze greenstone belt in northern Ontario. Assay results are expected within a week and a diamond drill program is planned to commence immediately following. Proposals from drillers operating nearby are currently being reviewed by KAP and the program will be announced when a contract and permits are finalized.
Running parallel to the program discussed above, the Company's exploration team has conducted prospecting and sampling programs on the other gold bearing porphyries that were sampled late last year. The plan is to advance these other areas to the drilling stage for later in the summer. Running the programs in parallel allows for continual advancement over a number of properties or areas in a cost efficient manner by utilizing the technical staff and drillers already in the region.
The Company also announces a non-brokered financing of up to 6.25 million units (the "Units") of the company at a price of 8 cents per Unit for gross proceeds of $500,000 (the "Offering"). Each Unit will consist of one common share in the capital of the Company and one common share purchase warrant. Each share purchase warrant will be exercisable into one common share at 12 cents for a period of 24 months from the closing of the financing.
Net proceeds will be used to complete additional exploration on the properties (see news release June 11, 2015, "Kapuskasing Gold Samples up to 11.5 g/t at Rollo - Airborne to be Flown at Borden North). The work will include the Rollo diamond drilling, airborne surveys, initiating prospecting at its other properties in the area and for general working capital purposes. Plans are to complete the groundwork and geophysics, to identify summer drill targets in and around the known structures and gold showings.
Completion of the Offering is subject to receipt of all regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to a statutory four-month hold period.
In connection with the Offering, Kapuskasing may, subject to regulatory acceptance, pay finders' fees to certain arm's-length parties on the proceeds raised. Company insiders may be participating in the offering.
Kapuskasing controls six gold properties located along inferred extensions of the Destor-Porcupine structure in the Borden Lake and Swayze areas. The company's six properties surround Goldcorp's Borden Project that was purchased from Probe Mines. A detailed map and property descriptions can be viewed on the company's website at www.kapuskasinggold.com.
On behalf of the Board of Directors:
KAPUSKASING GOLD CORP.
Dean Nawata, President & CEO, Director
Qualified Person
Mr. Garry Clark, the Exploration Manager and a director of the Company, a Qualified Person ("QP") as defined by National Instrument 43-101, has reviewed the technical content of this release.
Source: http://www.kapgold.com/