Use of proceeds will include Phase II drilling in progress at the West Madsen Gold Project right beside Canada's next gold mine in Red Lake, Ontario
Victoria, British Columbia--(Newsfile Corp. - December 9, 2020) - GoldON Resources Ltd. (TSXV: GLD) ("GoldON" or the "Company") is pleased to report the closing of its previously announced non-brokered private placement of 1,111,111 common share units at a price of $0.90 per unit with Mr. Eric Sprott to raise approximately $1,000,000 in gross proceeds. Each unit consists of one common share and one non-transferable share purchase warrant entitling the holder to purchase one additional common share of the Company at a price of $1.35 per share until December 8, 2022. All securities issued pursuant to this offering will have a hold period expiring April 9, 2021.
The Company will use the net proceeds of this financing for general working capital purposes and to fund the 7,000 metre Phase II diamond drilling program in progress at its West Madsen Project in the heart of the Red Lake Gold Camp (see Red Lake regional map).
Figure 1: Looking NE from West Madsen Block A toward the Pure Gold Red Lake Mine Project
The West Madsen Project covers over 4,700 hectares and shares its eastern property boundary with the Pure Gold Red Lake Mine property, which (according to Pure Gold’s news release of December 7, 2020) will be one of the highest grade gold mines globally and where initial gold production is imminent
Figure 2: Proposed Phase II Drill Plan for West Madsen Project
Pure Gold's reserves and resources are hosted in a seven-kilometre-long gold system that follows the major crustal break or contact between the Balmer and Confederation assemblages. This same Balmer-Confederation contact has been exposed in outcrop 1.6 kilometres (km) west of the Pure Gold property boundary and is interpreted to continue for ~8 km across GoldON's property.
The focus of the Phase II drilling program is to aggressively test the strike-extension of both the known gold mineralization to the east and follow-up on the gold mineralization discovered during GoldON's Phase I drilling (see news release of July 22, 2020). The black ellipse in Figure 2 above depicts the area of the interpreted east-west trending Balmer-Confederation contact and the proposed drill holes that will systematically test the extension of the stratigraphy within the structurally controlled corridor.
Ian Russell, P. Geo., an independent qualified person as defined in National Instrument 43-101, has reviewed and approved the technical contents of this news release on behalf of the Company.
About GoldON Resources Ltd.
GoldON is an exploration company focused on discovery-stage properties located in the prolific gold mining belts of northwestern Ontario, Canada. Our current project portfolio includes four properties in the Red Lake Mining Division (West Madsen, Pipestone Bay, McDonough and Bruce Lake) and a fifth property in the Patricia Mining Division (Slate Falls).
For additional information: please visit our website at goldonresources.com, you can download our latest investor presentation by clicking here and you can follow us on Twitter at https://twitter.com/GoldONResources.
ON BEHALF OF THE BOARD
Signed "Michael Romanik"
Michael Romanik, President
GoldON Resources Ltd.
Direct line: (204) 724-0613
Suite 108 - 800 Kelly Road, Suite 416
Victoria, BC, V9B 6J9
This news release may contain "forward-looking statements" that involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.