Engineer Gold Mines Increases Private Placement Amount
TSX VENTURE: EAU
Vancouver, B.C. / TheNewswire / May 6, 2019 - Engineer Gold Mines Ltd. (EAU: TSX-V) ("Engineer Gold" or the "Company") announces that it has cancelled the previously announced private placement (see News Release, Feb 6, 2019) and arranged a non-brokered private placement of up to $1,250,000 through the issuance of up to 12,500,000 units ("Unit") at a price of $0.10 per each Unit. Each Unit will be comprised of one common share and one-half of one share purchase warrant (a "Warrant"). Each whole Warrant is exercisable to purchase one common share of the Company at a price of $0.15 per share for a period of 30 months from the date of closing of the financing. The proceeds will be used for the Phase I exploration program at the Engineer Gold Mine Property, 32 km west of Atlin in northern BC, and general working capital. Finder's fees may be payable in connection with the private placement, all in accordance with the policies of the TSX Venture Exchange.
Phase I Surface and Underground Exploration Program
Engineer Gold is permitted and equipped to commence an exploration program at the Engineer Gold Mine Property entailing:
3,000 metres of surface and underground exploration drilling
mine de-watering of 6 and 7 Level (8 Level pending)
underground geological mapping and sampling
test mining and bulk sampling
on-site milling and mill water discharge
New High-Grade and Bulk-Tonnage Gold Exploration Targets Defined
A 2018 step-out MMI survey and previous geophysical survey have defined extensions of two main shear structures, a large intrusive stock and a number of coincidental gold-silver-arsenic-antimony soil anomalies in the immediate mine area that have never been trenched or drill tested. Engineer Gold's surface program will focus on these new targets.
Heavy Equipment and Drill on Site
In 2018 the Company purchased and barged a D6 Caterpillar bull dozer and 130 Samsung excavator, fuel and a diamond drill to the Engineer Gold mine site. The heavy equipment will be utilized to develop and re-open existing roads, trench soil geochemical anomalies and construct drill pads. A custom underground diamond drill has been built and will be mobilized to the Property in June.
Additional Financing Details
The private placement is subject to TSX Venture Exchange approval and all securities are subject to a four month hold period. Engineer Gold advises that the insiders of the Company may participate in the financing, which will be completed pursuant to available related-party exemptions under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions).
This press release does not constitute an offer of sale of any of the foregoing securities in the United States. None of the foregoing securities have been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act") or any applicable 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 (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Engineer Gold Mines Ltd.
Engineer Gold is a recently listed Company focused on the exploration and development of the 100%-owned, 14,020 ha Engineer Gold Mine Property, centered on the Historic high-grade Engineer Gold Mine situated 32 km southwest of Atlin, B.C. Previous work has identified a small, Inferred high-grade gold Mineral Resource, numerous high-grade vein and shear-hosted bulk-tonnage gold exploration targets and a small, high-grade gold production opportunity. Engineer Gold is fully permitted for surface and underground exploration drilling, small-scale test mining and on-site milling at the Engineer Gold Mine Property.
For additional information please visit the company website at www.engineergoldmines.com.
On behalf of the Board of Directors, For further information, please contact:
Mr. Brian P. Fowler, P.Geo. Nelson Da Silva
President and Director Manager Corporate Communications
Cautionary Note Regarding Forward-Looking Statements
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.
This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Engineer Gold Mines Ltd. which may cause actual results, performance or achievements of Engineer Gold Mines Ltd. to be materially different from the results, performance or expectation implied by these forward looking statements. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Neither the 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.