VLMGF: Viscount Mining Arranges $4-Million Financing
Viscount Mining Corp
Symbol VML
Shares Issued 54,802,129
Close 2020-07-22 C$ 0.355
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Viscount Mining arranges $4-million financing
2020-07-23 08:57 ET - News Release
Mr. Jim MacKenzie reports
VISCOUNT MINING CORPORATE UPDATE
Viscount Mining Corp. has arranged a non-brokered private placement with the assistance of IBK Capital Corp. for the sale of up to 16,666,667 units of Viscount Mining at a price of 24 cents per unit for gross proceeds of up to $4-million. Each unit will consist of one common share and one common share purchase warrant, with each warrant exercisable to acquire one additional share at a price of 32 cents per warrant share for a period of two years following the closing date of the offering.
Net proceeds from the offering are expected to be used for the exploration and development of the Viscount Mining mineral property interests and continuing working capital requirements.
The final closing expected to occur on or before Tuesday, July 28, 2020. Completion of the offering is subject to certain conditions, and receipt of all necessary regulatory approvals, including TSX Venture Exchange approval. All securities issued pursuant to the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws. The company will be paying a finder's fee or commission on a portion of the private placement.
Viscount is in the final planning stages of preparing for a drill program beginning in August at Silver Cliff, Colorado, where the company has an open-pit resource which it expects to expand. The Silver Cliff project consists of 96 contiguous patented and unpatented lode claims encompassing approximately 900 hectares in the Hardscrabble silver district, Custer county, south-central Colorado. The project lies immediately north of the town of Silver Cliff and Westcliffe and is 50 kilometres south of Canon City, 88 kilometres west-southwest of Pueblo and 225 kilometres south of Denver.
The Kate silver resource (the KSR) has been extensively drilled since the 1960s, and is one of four known historic silver deposits on the Silver Cliff property. The KSR underlies approximately 36 hectares or 4 per cent of the 900 hectares at Silver Cliff which Viscount controls.
The initial KSR silver resource estimate for Viscount was prepared in April, 2018, by Gilles Arseneau, PhD, PGeo, of Arseneau Consulting Services (ACS), in accordance with CIM standards incorporated by reference in National Instrument 43-101 using results from 19 cored HQ holes drilled in two phases in 2016 and 2017 plus results from historic holes verified by the 2016 to 2017 programs as assessed by ACS.
Many of the historic holes had been drilled for Tenneco Minerals at the KSR between 1987 and 1990, following which the company completed a feasibility study for open-pit mining of silver and announced plans to construct a $35-million milling operation at Silver Cliff. Shortly thereafter, the parent company, Tenneco was sold and the new owners decided to divest their mineral interests and the decision was reversed in 1991.
Of Viscount's two drilling campaigns on the KSR/Kate deposit, nine holes totalling 455.2 metres were drilled in 2016 and 10 additional holes totalling 912.1 metres were drilled in October of 2017. The drilling programs were primarily aimed at verifying the historical drill results. The best intersections from the 2016 and 2017 drilling according to ACS are as displayed in the attached table.
Hole No. From To Interval Ag
(m) (m) (m) (g/t)
K16-01 18.29 32.00 13.71 924.0
Including 18.29 24.38 6.09 1,768.0
Including 24.38 28.04 3.66 427.0
K16-03 17.37 34.14 16.76 141.5
Including 24.99 34.14 9.14 241.5
K16-04 18.59 36.88 18.29 204.0
Including 27.74 35.36 7.62 380.0
K16-05 19.81 33.53 13.72 390.6
including 25.91 32.00 6.09 762.0
K16-08 32.00 52.73 20.73 230.0
Including 39.62 50.29 10.67 403.0
K17-02 1.50 34.50 33.00 93.0
including 12.00 30.00 18.00 120.5
K17-04 18.00 39.00 21.00 121.7
Including 22.50 34.50 12.00 180.8
K17-05 9.50 24.50 15.00 279.6
including 11.00 18.50 7.50 477.0
Effective April 15, 2018, ACS estimated that the Kate deposit contained 2,064,000 tonnes of indicated mineral resource averaging 84 g/t of silver for 5.56 million ounces of silver and 3,172,000 tonnes of inferred mineral resource averaging 70 g/t of silver for 7,143,900 ounces of silver.
Classification Tonnes Grade Ag (g/t) Silver (oz)
Indicated 2,064,000 84 5,560,900
Inferred 3,172,000 70 7,143,900
(1) Mineral resources which are not mineral reserves do not have demonstrated economic
viability.
(2) The estimate of mineral resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
(3) The inferred mineral resource in this estimate has a lower level of confidence than
that applied to an indicated mineral resource and must not be converted to a mineral reserve.
It is reasonably expected that the majority of the inferred mineral resource could be
upgraded to an indicated mineral resource with continued exploration.
(4) The mineral resources in this report were estimated using the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves,
Definitions and Guidelines prepared by the CIM standing committee on reserve definitions
and adopted by the CIM Council.
Mineral resources were estimated by ordinary kriging using Geovia GEMs version 6.8.1 modelling software into 10 by 10 by five m blocks. All mineralized blocks were assigned 2.36 tonnes per cubic /m bulk density. ACS considers that blocks estimated during pass one and from at least four drill holes could be assigned to the indicated category.
Viscount will be continuing to drill with the objective of adding to the ACS resource estimate of the KSR/Kate deposit as well as moving forward on the evaluation of resource potential on three other areas of historic deposits at Silver Cliff.
Qualified persons
The scientific and technical information contained in this news release has been reviewed and approved by Harald Hoegberg, PG, an independent consulting geologist who is a qualified person (QP) as such term is defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
About Viscount Mining Corp.
Viscount Mining is a project generator and an exploration company with a portfolio of silver and gold properties in the Western United States, including Silver Cliff in Colorado and Cherry Creek in Nevada. The Silver Cliff property in Colorado lies within the historic Hardscrabble silver district in the Wet Mountain Valley, Custer county, south-central Colorado. It is located 44 miles west-southwest of Pueblo, Colo., and has year-around access by paved road.
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