Vancouver, BC December 1, 2017 Further to the news release dated Oct. 13, 2017, Chimata Gold Corp. has completed the acquisition of the BAM property in British Columbia’s Golden Triangle and has also closed the non-flow-through private placement, which is oversubscribed.
The company entered into a purchase agreement with Bearclaw Capital Corp. to acquire a 100-per-cent interest in the BAM mineral property. The property is composed of 1,052 hectares located in the Pacific Golden Triangle mining district approximately 80 kilometres south of Telegraph Creek in the Liard mining division of northwest British Columbia, Canada.
Under the terms of the purchase agreement, the company will pay $60,000 cash and issue 600,000 common shares to Bearclaw. The initial $15,000 cash payment and 600,000 common shares have been provided to Bearclaw, and the claims comprising the mineral property have been transferred to the company. The balance of the cash payments will be provided in three equal instalments of $15,000 over a 12-month period. Bearclaw will retain a 2-per-cent net smelter royalty on the property, of which 1 per cent may be purchased by the company for $1-million at any time. The company intends to release a National Instrument 43-101 report in 2018.
The company has also closed the non-flow-through portion of the private placement. The offering was for 2.5 million units at a price of 10 cents per unit, with each unit consisting of one common share and one share purchase warrant, exercisable at a price of 15 cents per share for a three-year term, for proceeds of $250,000. In light of the demand for the private placement, however, the company has accepted an oversubscribed amount of $309,150 for gross proceeds of $559,150. Chimata will issue 5,591,500 common shares and 5,591,500 share purchase warrants, under the same terms.
The proceeds of the sale of this offering will be for mineral exploration expenditures, evaluation of further acquisitions and general working capital purposes. All securities issued will be subject to a four-month hold period from the date of closing.
The previously announced offering of two million flow-though units at a price of 15 cents per FT unit with each FT unit consisting of one flow-through share and one-half of one whole share purchase warrant exercisable at a price of 25 cents per share for a three-year term is not fully subscribed at this time, and the company continues to accept subscription agreements.
Incentive stock options and appointment of new officer
The company also announces the granting of 1.6 million incentive stock options to officers, directors and consultants of the company. The options expire five years from the date of issue, and each option will allow the holder to purchase one common share in the capital of the company at an exercise price of 15 cents per share.
Additionally, Robert Rosner, chief financial officer of the company, has resigned the office of corporate secretary, and Steven Cozine has been appointed to the position of corporate secretary in his stead. Mr. Rosner will continue his role as CFO and director of Chimata.
The technical information contained in this news release has been reviewed and approved by Alain Moreau, PGeo. Mr. Moreau is a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
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