pcNewsWire – Resource Capital Gold Corp. (TSX-V: RCG) intends to close a non-brokered private placement of 2,857,200 common shares at $0.175 per share and 17,500,000 flow-through shares at $0.20 per FT share for aggregate gross proceeds of up to $4,000,010.
The gross proceeds from the sale of the FT shares will be used to fund work on the company’s properties as qualifying Canadian Exploration Expenses and the net proceeds from the sale of the common shares will be used for advancing the company’s projects, working capital and general corporate purposes.
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RESOURCE CAPITAL GOLD ANNOUNCES NON-BROKERED FINANCING FOR UP TO $4 MILLION
June 26, 2017 TSX-V: RCG
RESOURCE CAPITAL GOLD CORP. (TSX-V: RCG) (“RCG” or the “Company”) announces it is undertaking a non-brokered private placement for an aggregate of up to $4,000,010 of securities of RCG (the “Offering”), comprised of 2,857,200 common shares of the Company (the “Common Shares”) at an issue price of $0.175 per Common Share and 17,500,000 flow- through shares at a price of $0.20 per flow-through share (the “FT Shares”).
The gross proceeds from the sale of the FT Shares will be used to fund work on the Company’s properties as qualifying Canadian Exploration Expenses as defined in subsection 127(9) of the Income Tax Act (Canada) which will be renounced to the subscribers with an effective date of December 31, 2017.
The net proceeds from the sale of the Common Shares will be used for advancing the Company’s projects, working capital and general corporate purposes.
It is anticipated that the private placement will close the week of July 10, 2017, and is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange, and other customary conditions.
Finder’s fees may be payable on all or a portion of the Offering, and will consist of a cash fee of up to 6.0% of the gross proceeds received from the sale of the Common Shares and FT Shares and that number of non-transferrable share purchase warrants (the “Finders’ Warrants”) equal to 6.0% of the Common Shares and FT Shares placed by the finder, each Finder Warrant entitling the holder to subscribe for one common share for 24 months from the closing date of the Offering at $0.175.
All of the securities sold pursuant to the Offering will be subject to a four month hold period which will expire four months and one day after the date of closing, and it is expected will not participate in the receipt of the third-party share dividend to be received by the other RCG shareholders in connection with the transaction involving the transfer of the Corcoran project previously announced by the Company.
About Resource Capital Gold and the Dufferin Project
Resource Capital Gold Corp. is developing the high-grade Dufferin Gold Mine and mill in Nova Scotia, with initial gold production from test milling achieved in March 2017. The Dufferin project covers 1,684 hectares in 104 mineral claims which contain more than 14 east-west trending “saddle reef” quartz vein gold-bearing structures, each with free-milling gold. The stacked gold reefs are open at depth and extend along trend for over 4.7 kilometers. The Company is also advancing the Tangier and Forest Hill gold projects and is preparing preliminary economic assessments (“PEA’s”) on both.
About the Forest Hill property
Forest Hill is an advanced gold project with a drilled gold resource. Gold was discovered in 1893, followed by production, which up to 1916 produced 26,792 ounces at an overall recovered grade of 16.6 g/t Au. In the 1980s, a 230-m shaft was sunk and approximately 94,000 tonnes of ore mined. A total of 10 km of underground workings exist on the project, along with 249 surface drill holes totaling 34,413 m and 127 underground drill holes totaling 7,267 m. The project comprises 1,840 hectares in 115 exploration claims. Steeply dipping stratabound quartz veins on the south limb of the east-west trending Forest Hill anticline contain free-milling gold. Numerous veins have been encountered on the property, and they have been tracked for over 600 m along strike and 250 m down dip with excellent continuity demonstrated by drilling and mine workings. The project shows very good grades, and bulk sampling during the 1980s returned grades between 9.2 g/t Au and 13.8 g/t Au for diluted ore, with 94.9% overall recovery, of which 74.2% recovery was attained by gravity methods alone. The expansion potential at Forest Hill is very good, with mineralization open at depth along the entire mineralized system.
About the Tangier property
Tangier was the site of the first gold discovery in Nova Scotia in 1860. Total historic gold production up to 1919 is estimated at 29,000 ounces at a recovered grade of 17.5 g/t Au. The property saw several phases of bulk sampling during the 1980s and 1990s, the best of which was 2,578 tonnes with a recovered grade of approximately 16 g/t Au. A total of 211 surface and underground drill holes have been completed on the property. Past mining activities have developed 3,300 m of underground workings. The mine sits on a project area of 1,904 hectares in 119 exploration claims. The Tangier gold deposit is situated along the east-west trending Tangier anticline, a structure that has been traced for 7.3 km. Within this anticline, two sections totaling 1.4 km have been explored with drilling and past mining, which demonstrate good continuity of gold-bearing quartz veins to depths of 300 m. Gold-bearing quartz veins have been identified over a total strike length of 3.4 km on the property. This work has identified 70 or more gold-bearing quartz veins, demonstrating an extensive mineralized system. Mineralization at Tangier consists of coarse flake gold and nuggets in generally stratabound quartz veins up to 1.5 meters thick containing calcite and up to 5% sulfide minerals, including pyrite, pyrrhotite, arsenopyrite, sphalerite, and galena. The characteristics of the mineralization indicate that the deposit is an orogenic gold deposit, similar to the Dufferin Mine and others in Nova Scotia’s Meguma Terrane.
ON BEHALF OF THE BOARD OF DIRECTORS OF
RESOURCE CAPITAL GOLD CORP.
For more information, please contact:
Resource Capital Gold Corp.
Vancouver Park Place
666 Burrard Street, Suite 500
Vancouver V6C 3P6
P +1 604 642 6114
E email@example.com; rcgcorp.ca