News Release
WEST KIRKLAND ANNOUNCES A NON-BROKERED PRIVATE PLACEMENT FOR $1,447,500
Drilling to Expand Resources and Phase-Two Hasbrouck Permitting to Continue
VANCOUVER, BRITISH COLUMBIA, August 3, 2017 – West Kirkland Mining Inc. (WKM:TSXV) (“West Kirkland” or the “Company”) announces the execution of subscription agreements for a non-brokered private placement of common shares of the Company with three of its major shareholders for $1,447,500 at $0.075 per share (the “Private Placement”).
West Kirkland intends to expand its efforts from permitting and engineering on its gold reserves to include exploration on its large Tonopah, Nevada land position. The initial permits to build and operate the Three Hills open-pit heap leach operations are in hand and the second, larger pit and leach pads at Hasbrouck are in the permit process. Adding open pit resources from exploration to the initial permitted pits and leach pads would have an important, positive impact on the already robust project.
Current Reserves are a Proven and Probable Mineral Reserve of 762,000 ounces of gold and 10.6 million ounces of silver. At a $ 1,225 gold price, a 2016 Pre-feasibility Study estimates a net present value at a 5% discount rate of US$ 102 million and an IRR of 38%. West Kirkland owns 75% of the project and has improved its share of the economics by buying a 1.1% royalty on the project. (Probable Reserves on a 100% basis are 41 million tonnes at 0.6 g/t gold, 8 g/t silver, per Mine Development Associates’ Technical Report dated September 1, 2016, www.sedar.com).
The Company has agreed to issue 19,300,000 shares at a price of $0.075 per share for aggregate gross proceeds of $1,447,500. There are no finder’s fees or commissions to be paid on the Private Placement, which was arranged by management. Following the Private Placement, Sun Valley Gold Master Fund, Ltd. and Ruffer LLP, on behalf of its clients, will hold approximately 33.71% and 16.99% respectively of the common shares of the Company. A third shareholder will beneficially own approximately 9.9% of the common shares of the Company following the private placement.
The Company intends to use the net proceeds of the Private Placement for general working capital, targeted resource expansion drilling, regional exploration, and phase two permitting on its 75% interest in the Hasbrouck Project in Nevada. Clover Nevada LLC, a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman, LP, (“Waterton”), owns the remaining 25% interest in the Hasbrouck Project. Waterton has been funding their 25% share of project expenditures since September, 2016.
The shares sold in the above noted Private Placement will be subject to the approval of the TSX Venture Exchange (“Exchange”) and will bear a four-month resale restriction from the date of closing, which the Company anticipates will occur as soon as possible after Exchange approval.
The securities offered pursuant to the Offerings have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About West Kirkland Mining Inc.
West Kirkland owns a 75% interest in, and a 1.1% net smelter return royalty over the Hasbrouck Gold Project in Tonopah, Nevada. A Pre-feasibility Study was completed and updated in 2016 for two open-pit heap-leach mines comprising the Hasbrouck Gold Project. The Pre-feasibility Study along with construction-level drawings and all federal and state permits for the phase-one Three Hills Mine provides a ready-to-construct project. Permitting for the phase-two Hasbrouck Mine is well advanced.
On behalf of West Kirkland Mining Inc. “R. Michael Jones” Chief Executive Officer
For further information, please see the Company’s website at www.wkmining.com or contact us by email at info@wkmining.com.
Investor Relations:
Rob Bruggeman
(416) 884-3556 / rbruggeman@wkmining.com
Authors and Qualified Persons Statement
Sandy McVey, P.Eng., Chief Operating Officer for West Kirkland, and a non-independent Qualified Person as defined by NI 43-101, has reviewed the technical information contained in this news release and has verified the relevant data. Quality Control and Assay information is as previously disclosed in the Company’s technical reports.
