Alamos Gold Becomes Strategic Investor in Orford Mining; Proceeds of Private Placement to Advance the Qiqavik Gold Project
TSX VENTURE: ORM
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TORONTO, May 9, 2019 /CNW/ - Orford Mining Corp. ("Orford" or the "Company") (TSX VENTURE: ORM) is pleased to announce that it has arranged a non-brokered private placement of: (i) 11,764,706 flow-through shares at an issue price of C$0.17 per share, which will generate aggregate gross proceeds of C$2,000,000, and (ii) 3,000,000 hard dollar common shares at an issue price of C$0.10 per share with Alamos Gold Inc. (AGI-TSX) ("Alamos"), which will generate gross proceeds of C$300,000. (the "Offering"). Total gross proceeds of the Offering are expected to be C$2,300,000. Upon completion of the Offering, it is anticipated that Alamos will initially own a total of 14,764,706 common shares of Orford, or 19.3% of its issued and outstanding common shares.
Two Alamos nominees will serve on a newly created Orford exploration advisory committee to help guide future programs along the high- grade Qiqavik gold trend and elsewhere.
David Christie, President and CEO of Orford commented, "We are delighted to welcome Alamos as a partner and key shareholder recognizing the tremendous potential of our greenfield gold discovery at Qiqavik where we identified high grade gold surface showings in multiple locations across 45 kilometres. I look forward to working with them to advance the Qiqavik gold project and further unlock its potential during the coming summer program."
The proceeds of the Offering will be used by Orford to continue exploration of the Qiqavik project in Northern Quebec and for general corporate purposes. The Qiqavik project represents a new gold discovery in the Cape Smith Belt of Northern Quebec.
The Offering is anticipated to close on or before May 22, 2019 and is subject to receipt of applicable regulatory approvals, including approval of the TSX Venture Exchange. The common shares issued under the Offering will be subject to a hold period expiring four months plus a day from the date of closing.
In addition to the shares to be issued under the Offering, Orford will also issue 354,546 common shares as payment to a service provider for services unrelated to the offering contemplated in this press release.
After the closing of this Offering, 76,333,460 common shares of Orford will be issued and outstanding.
About the Qiqavik Property
The Qiqavik Property covers the 40-km long Qiqavik Break, part of the Cape Smith Belt event which is of Paleoproterozoic age (1.8-1.9 billion years). This geologic era is marked by its significant metal endowment as illustrated by the important gold districts that occur worldwide related to geological events of Paleoproterozoic age. These include the Flin Flon-Snow Lake Belt, the Ashanti Gold Fields of West Africa, the Tapajos-Parima Belt of Brazil, and the Tanami Region in Australia1. The Cape Smith Belt is also home to Glencore's world class Raglan Mine.
Early-stage exploration work completed to date on the Qiqavik Property shows that high-grade gold and copper occurrences are structurally controlled and associated with secondary splay structures located along the district-scale Qiqavik Break Shear Zone which extends the full 40 km length of the Qiqavik Property.
This information is not necessarily indicative of the mineralization on Orford Mining's properties.
About Orford Mining Corporation
Orford Mining is a mineral explorer focused on highly prospective and underexplored areas of Northern Quebec. Orford's principal assets are the Qiqavik and West Raglan projects comprising of a land package totaling over 70,000 hectares in the Cape Smith Belt of Northern Quebec. The Qiqavik Project hosts several new high-grade gold discoveries along a mineralized trend in excess of 40 km. Orford's common shares trade on the TSX Venture Exchange under the symbol ORM.
To view further details about the Qiqavik and West Raglan projects please visit Orford's website, www.orfordmining.com.
The disclosure of scientific and technical information contained in this news release has been approved by Alger St-Jean, Vice President, Exploration of Orford, a Qualified Person under NI 43-101.
The information regarding work disclosed herein in respect of the Qiqavik Property is based on the independent report of Clement Dombrowski, P.Geo of IOS Services Geoscientifiques Inc. titled "NI 43-101 Technical Report on Qiqavik Project, Northern Quebec, Canada" effective September 14, 2017, and on Orford's news releases available on Orford's website and on SEDAR.
Cautionary Statement Concerning Forward-Looking Statements
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" including without limitation statements relating to the liquidity and capital resources of Orford and potential of one or more of the Qiqavik, and West Raglan, properties.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Orford to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: future prices and the supply of metals; the results of drilling; inability to raise the money necessary to incur the expenditures required to retain and advance the properties; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, failure to obtain regulatory or shareholder approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Orford's filings with Canadian securities regulators available on SEDAR at www.sedar.com.
Although Orford has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Orford disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
The TSXV has neither approved nor disapproved the contents of this news release.