(TheNewswire)
May 23 , 2023 – TheNewswire - DAMARA GOLD CORP. (TSXV:DMR) (“ Damara ” or the“ Company ”), is please to announce it will conduct a non-brokered private placement(the “ Offering ”) for gross proceeds of up to $750,000. The Company is pleased to offer the 30% Critical MineralExploration Tax Credit which was introduced to support specifiedcritical minerals exploration expenditures incurred in Canada.
The Offering will consist of a combination of (i) up to7,142,857 units of the Company issued on a flow-through basis (the“ FT Unit ”) at a price of $0.07 per FT Unit for gross proceeds of upto $500,000 (the “ FTProceeds ”) and (ii), up to 5,000,000 units ofthe Company issued on a non-flow-through basis (the “ NFT Units ”) at aprice of $0.05 for gross proceeds of up to $250,000 (the“ NFT Proceeds ”).
Each FT Unit will consists of one common share thatwill qualify as a “flow-through share” within the meaning ofthe Income TaxAct (Canada) and the Taxation Act (Québec) and one common share purchase warrant (a“ Warrant ”) with each Warrant exercisable at a price of $0.10 pershare for a period of two years following closing.
The Company intends to use the FT Proceeds to incurCanadian Exploration Expenses and “flow-through miningexpenditures” as defined in the Income Tax Act (Canada) and the Taxation Act (Québec) on the Company’sexploration program at its VanLab Property located in the Quebec territory of Nunavik 200 km north ofSchefferville and 200 km south of Kuujjuaq ,which will be incurred on or before December 31, 2024, and renouncedwith an effective date no later than December 31, 2023 to thesubscribers of FT Units in an aggregate amount not less than the grossproceeds from the sale of the FT Units.
Each NFT unit will consist of oneCommon Share in the capital of the Company and one Warrant asdescribed above. The NFTProceeds will be used by the Company for exploration expenditures aswell as for general working capital and administrativepurposes .
The Company may pay finders' fees of 6% cash and 6%finders warrants (“ FinderWarrant ”). Each Finder Warrant will entitle the holder to acquire one additional commonshare in the capital of the Company at a price of $0.10 for 24 monthsfrom closing on the same terms as the Warrants.
The VanLab Property
The VanLab property covers a portion of the LabradorTrough approximately 200 kilometres northwest of Schefferville and 200kilometers south of Kujjuaq. Historical public data obtained from thefiles of the “Ministère de l'Énergie et des Ressourcesnaturelles-Québec” indicate the presence of various minerals withinthe siltstone and dolomite Alder Formation. The main mineral potentialinterest includes vanadium, copper, cobalt, niobium, molybdenum,scandium, uranium and rare earth. Within the Minowean Lake area, thereis a sheared corridor 800 m by 11 km long containing polymetallicveins of arsenide, vanadate, copper and pitchblende which presents aline of 6 showings named Maxime, Racine, Ferme Sud, Ferme Nord, Ti-Poil and Surprise 2 (see attached Damara Map). The first fiveshowings are within the Orano(formerly Areva) claims but the“Surprise 2” showing and the extension of sheared corridor are inthe Damara claims.
On the “Surprise 2” showing, grab sample no 11353 Agraded 6.0% vanadium and 0.7% uranium (GM41311). Another grab samplegraded 1439 ppm vanadium, over 2000 ppm molybdenum, 1413 ppm lead, 1.2ppm silver and 57 ppm uranium (GM62471).
Twelve km southwest of the “Surprise 2” showing,Damara holds a block of claims containing the “Lac Savigny”showing. This showing consists of a main diatreme (brecciatedexplosive pipe) with a 500 m diameter surrounded by 5 satellitediatremes of a few ten-meter diameters within a 1 km radius area. The diatremes consist of carbonatite within brecciated slate of theSavigny Formation. Sample #1986025434 graded 6697 ppm of rare earth(MB 93-04). Another sample graded 0.02% niobium and 0.04% rareearths (RP 571).
The entire claim block has been surveyed by modernairborne electromagnetics, magnetics and radiometrics. Damara obtainedthis public data from the “M’inistère” files and reprocessedthem to identify specific targets for the 2023 field program. Theprimary exploration focus will be for vanadium, copper andcobalt.
The funds raised will be used for a one-monthprospection and geology survey to locate, sample and map themineralized zones to prepare for the next exploration phase whichshould consist of a drilling campaign.
The result from the samples have notbeen independently verified by Damara. They originate from documentsfiled with the “Ministère”. The scientific or technicalinformation in this news release pertaining to Damara’s VanLabmineral property was prepared under the supervision of Yvan Bussières(P.Eng), a technical advisor and Qualified Person as defined inNational Instruments 43-101 –Standards of Disclosure for MineralProjects.
None of the securities sold inconnection with the Offering will be registered under the UnitedStates Securities Act of 1933, as amended, and no such securities maybe offered or sold in the United States absent registration or anapplicable exemption from the registration requirements. This newsrelease shall not constitute an offer to sell or the solicitation ofan offer to buy nor shall there be any sale of the securities in anyjurisdiction in which such offer, solicitation or sale would beunlawful.
Qualified Person
Yvan Bussières, P. Eng, (Quebec) technical advisor to the Company, is the Qualified Person as definedby National Instrument 43-101 who has reviewed and approved thetechnical data in this release.
About Damara
Damara Gold Corp. is a TSX Venture listed mineralexploration company actively focused on the exploration of the PlacerMountain Gold Property, located in Princeton, BC, held by 84%/16% JVwith Universal Copper Ltd. Damara’s Board of Directors is seasonedin the mineral exploration industry with extensive and successfulinternational experience.
ON BEHALF OF THE BOARD OF DIRECTORSOF DAMARA
“Larry Nagy”
Larry Nagy, Chief Executive Officer
For additional information visit Damara’s website at www.damaragoldcorp.com or contact:
Damara Gold Corp.
Larry Nagy
Chief Executive Officer or
Terese Gieselman
Chief Financial Officer
Ph: (250-717-1840)
Disclaimer for Forward-LookingInformation
This news release contains statements that constitute"forward-looking Information", as suchterm is used in applicable Canadian securities laws . Such forward-looking information involves known andunknown risks, uncertainties and other factors that may cause theCompany’s actual results, performance or achievements, ordevelopments in the industry to differ materially from the anticipatedresults, performance or achievements expressed or implied by suchforward-looking information. Forward-looking information includesstatements that are not historical facts and are generally, but notalways, identified by the words "expects,""plans," "anticipates," "believes,""intends," "estimates," "projects,""potential" and similar expressions, or that events orconditions "will," "would," "may,""could" or "should" occur.
Although the Company believes the forward-lookinginformation contained in this news release is reasonable based oninformation available on the date hereof, by its natureforward-looking information involves assumptions and known and unknownrisks, uncertainties and other factors which may cause our actualresults, level of activity, performance or achievements, or otherfuture events, to be materially different from any future results,performance or achievements expressed or implied by suchforward-looking information.
Examples of such assumptions, risks and uncertaintiesinclude, without limitation, assumptions, risks and uncertaintiesassociated with general economic conditions; the Covid-19 pandemic;adverse industry events; the receipt of required regulatory approvalsand the timing of such approvals; that the Company maintains goodrelationships with the communities in which it operates or proposes tooperate, future legislative and regulatory developments in the miningsector; the Company ’ sability to access sufficient capital from internal and externalsources, and/or inability to access sufficient capital on favorableterms; mining industry and markets in Canada and generally; theability of the Company to implement its business strategies;competition; the risk that any of theassumptions prove not to be valid or reliable, which could result indelays, or cessation in planned work, risks associated with theinterpretation of data, the geology, grade and continuity of mineraldeposits, the possibility that results will not be consistent with theCompany’s expectations, as well as other assumptions risks anduncertainties applicable to mineral exploration and developmentactivities and to the Company, including as set forth in theCompany’s public disclosure documents filed on the SEDAR website at www.sedar.com .
THE FORWARD-LOOKING INFORMATIONCONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF DAMARAAS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TOCHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ONFORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATIONAS OF ANY OTHER DATE. WHILE DAMARA MAY ELECT TO, IT DOES NOT UNDERTAKETO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIREDIN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this press release
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