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Chimata to purchase Bam mineral property

Chimata to purchase Bam mineral property

Chimata to purchase Bam mineral property

2017-10-13 16:07 ET – News Release

Mr. Robert Rosner reports

CHIMATA GOLD CORP ENTERS INTO AGREEMENT TO ACQUIRE 100% INTEREST IN BAM MINERAL PROPERTY AND $550,000 PRIVATE PLACEMENT

Chimata Gold Corp. has entered into a property purchase agreement and the company also arranges a private placement offering.

Property purchase

The company has entered into a purchase agreement with Bearclaw Capital Corp. dated Oct. 12, 2017, to acquire a 100-per-cent interest in the Bam mineral property. The property comprises, 1052 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.

Under the terms of the purchase agreement, the company will pay $60,000 cash and issue 600,000 common shares to Bearclaw as follows: $15,000 cash and 600,000 common shares on closing of the agreement and the balance of the cash to be paid in three equal instalments of $15,000 over a 12-month period. In addition, 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 purchase agreement is subject to the approval of the TSX Venture Exchange.

Private placement

The company announces a proposed private placement offering for maximum gross proceeds of $550,000. The company is offering securities on the following terms:

(1) 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;

(2) 2.5 million non-flow-through units at a price of 10 cents per NFT unit with each NFT unit consisting of one common share and one whole share purchase warrant exercisable at a price of 15 cents per share for a three-year term.

The proceeds of the sale of this offering will be for mineral exploration expenditures and for general working capital purposes.

All securities issued will be subject to a four-month hold period from the date of closing. The offering is subject to the approval of the TSX Venture Exchange.

We seek Safe Harbor.

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