Oceanus Resources closes $3-million private placement
2017-08-01 13:08 ET - News Release
Mr. Glenn Jessome reports
OCEANUS CLOSES THREE MILLION DOLLAR PRIVATE PLACEMENT
Oceanus Resources Corp. has closed a non-brokered private placement raising $3-million through the issuance of 10 million units at a price of 30 cents per unit. Each unit consists of one common share and one-half warrant of the company at 30 cents per unit. Every two one-half common share purchase warrants of the company entitle the subscriber to acquire one common share of the company for 40 cents for a period of 18 months from the closing date. The units issued pursuant to this private placement are subject to a four-month hold period that expires on Dec. 2, 2017.
Oceanus intends to immediately begin drilling the unmined Protectora vein that is to the north of the old El Tigre mine, where in drill hole No. 144 Oceanus intercepted 0.85 metre of 37.2 g/t (grams per tonne) gold and 7,338.9 g/t silver, as well as 0.85 metre of 2.84 per cent copper, 4.06 per cent zinc and 1.38 per cent lead (June, 2017). The mineralized zone consists of several vuggy quartz veins and veinlets carrying galena, sphalerite, chalcopyrite, stromeyerite and pyrite within a strongly silicified and kaolinized alteration zone. The true width of the vein is estimated to be 0.8 metre, and the gold-equivalent ratio is based on a gold-to-silver ratio of 75:1.
Oceanus's geologists are currently exploring, sampling and assaying the underground exploration tunnels at the Protectora vein, such tunnels that are located 800 metres to the south and 950 metres to the north of the drill hole No. 144. Certain officers and directors of Oceanus subscribed for an aggregate of 1,002,668 units. The proceeds from the private placement will be used for exploration at Oceanus's El Tigre Property in Sonora, Mexico, and for general working capital purposes. The private placement remains subject to final acceptance by the TSX Venture Exchange.
El Tigre property
The El Tigre property lies at the northern end of the Sierra Madre, gold belt which hosts epithermal gold and silver deposits including Ocampo, Pinos Altos, Dolores and Palmarejo. In 1896, gold was first discovered on the property in the Gold Hill area, and mining started with the Brown shaft in 1903. The focus soon changed to mining high-grade silver veins in the area, with the majority of the production coming from the El Tigre vein. Underground mining on the El Tigre vein extended 1,450 metres along strike and mined on 14 levels to a depth of 450 metres. By the time the mine closed in 1938, it is reported to have produced a total of 353,000 ounces of gold and 67.4 million ounces of silver from 1.87 million tonnes.
David R. Duncan, PGeo, vice-president of exploration of the company, is the qualified person for Oceanus as defined under National Instrument 43-101. Mr. Duncan has reviewed and approved the scientific and technical information in this press release and has reviewed the technical report.