conix
5 years ago
Capital raise is successful
CONTACT GOLD ANNOUNCES UNDERWRITERS HAVE AGREED TO PURCHASE $4 MILLION OF COMMON STOCK IN PUBLIC OFFERING
Vancouver, B.C. (May 13, 2019) – Contact Gold Corp. (the “Company” or “Contact Gold”) (TSXV: C) is pleased to announce that further to its news release dated April 10, 2019, it has entered into an underwriting agreement with Raymond James Ltd. and Cormark Securities Inc., as joint bookrunners and underwriters, together with their U.S. affiliates Raymond James (USA) Ltd. and Cormark Securities (USA) Limited (collectively, the “Underwriters”) whereby the Underwriters have agreed to purchase 20,000,000 shares of common stock (the “Offered Shares”) at a price of $0.20 per Offered Share (the “Offering Price”) for gross proceeds of $4,000,000 (the “Offering”). The Company has granted to the Underwriters an option (the “Over-Allotment Option”), exercisable in whole or in part, in the sole discretion of the Underwriters, for a period of 30 days from and including the closing of the Offering, to purchase up to an additional 3,000,000 Offered Shares at the Offering Price. If the Over-Allotment Option is exercised in full, the total gross proceeds to the Company will be $4,600,000.
The Offering is being conducted (A) in Canada pursuant to a prospectus supplement (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated October 24, 2018 filed in all of the provinces and territories of Canada, except for Québec (the “Canadian Jurisdictions”), and (B) to the public under an offering statement on Form 1-A, which includes an offering circular (the “Offering Statement”), pursuant to Regulation A under the U.S. Securities Act of 1933, as amended (the “1933 Act”), filed with the United States Securities and Exchange Commission (the “SEC”). The qualification of the Offering Statement by the SEC is expected to occur on or about May 15, 2019.
The Company intends to use the net proceeds of the Offering to undertake further drilling at Contact Gold’s flagship Pony Creek project located in Elko County, Nevada, for other exploration expenditures on Contact Gold’s other properties and for general working capital purposes as further detailed in the Prospectus Supplement and Offering Statement. Closing of the Offering is expected to occur on or about May 22, 2019 and is subject to the receipt of all necessary securities regulatory and stock exchange approvals.
Pursuant to an existing investor rights agreement between the Company and Waterton Nevada Splitter, LLC (“Waterton”), Waterton has the right to participate in the Offering in order to maintain its pro rata ownership interest in the Company. Waterton has notified the Company that it plans to purchase 8,448,000 Offered Shares pursuant to the Offering. As a result, Waterton will hold approximately 38% of the issued and outstanding common stock of the Company after giving effect to the Offering.
The Prospectus Supplement and the Offering Statement containing important information relating to the Offering will be filed with the securities commissions in the Canadian Jurisdictions and in the United States with the SEC, respectively. Copies of the Prospectus Supplement and the Offering Statement will be available at www.sedar.com and www.sec.gov and may be obtained from Raymond James at Raymond James Syndication, 416-777-7000, 5400-40 King St West, Toronto Ontario, M5H 3Y2, or Cormark Securities at Cormark Securities Inc., 416-943-6405, Royal Bank Plaza, South Tower, Suite 2800, 200 Bay Street, P.O. Box 63, Toronto, On M5J 2J2.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer or sale of any securities, in any state or jurisdiction in which the offer, solicitation, or sale of securities would be unlawful. The securities being offered have not been approved or disapproved by the SEC or any Canadian securities commission, nor has any such regulatory authority passed upon the accuracy or adequacy of the Prospectus Supplement or the Offering Statement. The securities being offered have not been and will not be registered under the 1933 Act.
About Contact Gold Corp.
Contact Gold is an exploration company focused on producing district scale gold discoveries in Nevada. Contact Gold’s extensive land holdings are on the prolific Carlin, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Contact Gold’s land position comprises approximately 200 km2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.
Additional information about the Company is available at www.contactgold.com.
conix
5 years ago
Contact Gold Extends the Gold Footprint of Pony Spur and Discovers Another New Carlin-type Gold Target at Pony Creek
Vancouver, B.C. (March 26, 2019) – Contact Gold Corp. (the “Company” or “Contact Gold”) (TSXV: C) is pleased to announce the discovery of significant gold-in-soils extending 580 metres west from the previous drilling discovery at the Pony Spur target on the Pony Creek gold property (“Pony Creek”).
In addition, the highest-grade gold-in-soil sample, 1.18 g/t gold, was returned from a new target 480 metres south of Pony Spur in a similar Carlin-type gold setting.
Highlights:
580 metres by 200 metres gold-in-soil anomaly up to 386 ppb Au (0.386 g/t Au) continuing west from the Pony Spur discovery holes (see news release September 5, 2018)
Multiple soil samples over 100 ppb Au (0.1 g/t Au) extending east from the discovery outcrop of intensely silicified sandstone with strong barite and hematite alteration
Highest grade soil sample at 1.18 g/t Au collected 480 metres south of Pony Spur in an area of gold-in-soil anomalies measuring 225m by 175m
These new gold targets are located along the traditional host horizon at the Devil’s Gate Limestone – Webb Formation contact that hosts the majority of gold deposits on the southern Carlin Trend
“These new gold discoveries at the traditional Carlin-type gold host are very exciting. To discover our highest-grade gold in soil sample to date from Pony Creek is particularly encouraging given its proximity to Pony Spur, and our other targets on the property. In addition, we are excited to see that our drill intercepts from last year might only have been at the margin of the system and that there is a substantial footprint of gold extending west and south from Pony Spur.” stated Matt Lennox-King, CEO of Contact Gold.
Pony Spur Target
The Pony Spur Target was acquired in 2017 as part of Contact Gold's expansion of Pony Creek. The claims cover an exposure of intensely silicified Chainman Shale with strong barite and hematite that occurs along a regional-scale, northwest-striking fault that projects into the Bowl Zone gold-in-soil footprint (580m-200m), defined by 24 soil samples across 3 soil sample lines 100m apart and on 50m centres
7 samples returned better than 100ppb Au, which is considered highly anomalous in Carlin-type gold systems
Drilling in 2018 encountered oxide gold in all three holes (27m @ 0.2 g/t Au, 21m @ 0.2 g/t Au and 20m @ 0.2 g/t Au see news release September 5, 2018) and appears to have been drilled at the eastern margin of the gold-in-soil footprint
A new, strong gold-in-soil anomaly defined by 7 samples on a 100m by 50m grid was discovered 480m south of the Pony Spur drilling including the highest-grade soil sample ever taken on the project at 1.18 g/t Au, suggesting an extension to the gold system to the south
For a map of the Pony Creek target areas please click:
http://contactgold.com/_resources/news/Pony-Creek-Pony-Spur-Overview.jpg
For a detailed plan map of Pony Spur, please click:
http://contactgold.com/_resources/news/Pony-Spur-Soils.jpg
Pony Creek is an early stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). There has been insufficient exploration to define a mineral resource estimate at Pony Creek. Additional information about Pony Creek is summarized in a technical report entitled “Technical Report on the Pony Creek Gold Project, Elko County, Nevada, USA” dated April 18, 2017, and effective March 15, 2017), prepared by Michael M. Gustin, C.P.G. of Mine Development Associates of Reno, Nevada (the “Technical Report”), which can be viewed under Contact Gold’s issuer profile on SEDAR at: www.sedar.com
The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, VP Exploration, Contact Gold, who is a “qualified person” within the meaning of NI 43-101. Drill intercepts were calculated using a minimum thickness of 3.05 metres averaging 0.14 ppm gold and allowing inclusion of up to 4.57 metres of material averaging less than 0.14 ppm gold for low grade intervals and higher grade intervals were calculated using a minimum thickness of 3.05 metres averaging 1.00 ppm gold and allowing inclusion of up to 4.57 metres of assays averaging less than 1.00 ppm gold. Gravimetric assays are used for all Fire Assays above 4.00 ppm gold. True width of drilled mineralization is unknown, but owing to the apparent flat lying nature of mineralization, is estimated to generally be at least 70% of drilled thickness Quality Assurance / Quality Control consists of regular insertion of certified reference standards, blanks, and duplicates. All failures are followed up and resolved whenever possible with additional investigation whenever such an event occurs. Multi element geochemical assays are completed on composites using the MEMS 61 method. All assays are completed at ALS Chemex; an ISO 17025:2005 accredited lab. Check assays are completed at a second, reputable assay lab after the program is complete.
About Contact Gold Corp.
Contact Gold is an exploration company focused on producing district scale gold discoveries in Nevada. Contact Gold’s extensive land holdings are on the prolific Carlin, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Contact Gold’s land position comprises approximately 212 km2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.
conix
5 years ago
Contact Gold Develops Additional Carlin Gold Targets at Pony Creek
Vancouver, B.C. (February 13, 2019) – Contact Gold Corp. (the “Company” or “Contact Gold”) (TSXV: C) is pleased to report the identification of 3 high priority Carlin-type gold targets located on the northern part of the Pony Creek gold property (“Pony Creek”), immediately south of Gold Standard Ventures’ (TSX:GSV) Railroad Project.
These new, large, high-priority drill targets generated in 2018 include the Palomino Target, the Willow Target and the DNZ Target.
“Our ongoing target generation efforts at Pony Creek in 2018 delivered more new large-scale drill targets using our successful exploration strategy. Our systematic approach validated by the recent oxide gold discovery at the West Zone produced the new Palomino, Willow and DNZ targets. The strong gold-in-soil anomalies supported by mapped structures and CSAMT anomalies in areas of widespread hydrothermal alteration that are typically associated with Carlin-style gold mineralization are located along the same structural corridor that hosts our Bowl Zone, West Zone, GSV’s deposits and Newmont's mines further north.” stated Matt Lennox-King, CEO of Contact Gold.
In spring 2019, Contact Gold plans to complete first pass drilling at these three new targets, as well as at the previously generated Moleen and Elliott Dome targets.
The Company completed 51 holes in 2018, totaling over 10,863m of drilling. Results are pending for 3 holes.
Palomino Target:
The Palomino Target is immediately northwest of the high-grade oxide portion of the Bowl Zone where drilling in 2018 returned a shallow oxide gold intercept of 2.51 g/t Au over 47 metres (see news release June 21, 2018).
Features:
Significant gold in soil anomaly with values up to 552 ppb Au and multiple samples above 50 ppb Au within an overall total footprint of 400 x 500 metres
Located northwest of the high-grade oxide gold zone at the Bowl Zone in an open direction with only three shallow historic holes in the vicinity
Also located within the larger north-south trending structural corridor, which hosts the Bowl Zone and the West Zone discovery, as well as the Jasperoid Wash and Pinion deposits owned by GSV
Willow Target:
The Willow Target is immediately south of GSV’s Jasperoid Wash discovery and is a continuation of the 1.5 km gold-in-soil Moleen Target, which has not yet been drilled.
Features:
Never before drilled
Significant northwest trending gold in soil anomaly with values up to 79 ppb Au within a total footprint of 250 x 750 metres, and multiple mapped northwest striking faults defined by detailed mapping cutting Penn/Perm clastic carbonates
A second drill target was generated on the east part of Willow by a coincident CSAMT high-resistivity anomaly combined with a large-offset, north-south striking fault directly on trend with GSV's Jasperoid Wash discovery
DNZ Target:
Features:
Undrilled area covered by post-mineral, Tertiary basalts
Structural breaks in four east-west oriented CSAMT lines image a large-offset, north-south striking, fault that lies on strike between GSV's Dixie target and Pony Creek’s North Zone
For a location map of Pony Creek and Palomino target detail – please click on the following links:
http://www.contactgold.com/_resources/news/Soil-Contours-2019.jpg
http://www.contactgold.com/_resources/news/Palomino.jpg
http://www.contactgold.com/_resources/news/Willow.jpg
Pony Creek is an early stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). There has been insufficient exploration to define a mineral resource estimate at Pony Creek. Additional information about Pony Creek is summarized in a technical report entitled “Technical Report on the Pony Creek Gold Project, Elko County, Nevada, USA” dated April 18, 2017, and effective March 15, 2017), prepared by Michael M. Gustin, C.P.G. of Mine Development Associates of Reno, Nevada (the “Technical Report”), which can be viewed under Contact Gold’s issuer profile on SEDAR at www.sedar.com
The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, VP Exploration, Contact Gold, who is a “qualified person” within the meaning of NI 43-101.
Assays for gold are completed using Au-AA23 fire assay method. Multi-element geochemical assays are completed on composites using the MEMS 61 method. All assays are completed at ALS Chemex; an ISO 17025:2005 accredited lab.
About Contact Gold Corp.
Contact Gold is an exploration company focused on producing district scale gold discoveries in Nevada. Contact Gold’s extensive land holdings are on the prolific Carlin, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Contact Gold’s land position comprises approximately 212 km2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.
Additional information about the Company is available at www.contactgold.com.
For more information, please contact: +1 (604) 449-3361
John Glanville – Director Investor Relations
Chris Pennimpede – Corporate Development
E-mail: info@ContactGold.com
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