Genius Metals Inc. (CSE: GENI) has completed the first tranche of a non-brokered private placement offering for gross proceeds of $2,395,140, these funds will be used to advance the exploration programme on the Sakami property. Genius Metals initial diamond-drilling program on the Sakami Property has been completed comprising of 17 holes with 2,658m of core obtained.
Summer Drilling Program
Genius Metals has completed the summer drilling campaign on the Sakami property, located in the James Bay Territory, and successfully attained all its set objectives. Three main sites, the Golden Eye, Lamarche and the northeast extension the main core zone structure, were drilled; seventeen holes were completed and 2,658 metres of core were obtained. A preliminary evaluation of the core confirmed that the mineralization noted during the mapping and sampling campaigns of the last two years continued to depth. The Lamarche core material revealed several sphalerite, pyrrhotite and pyrite-rich intersections within deformed, sheared and altered metasediments accompanied by minor intermediate volcanic rocks. The northeast extension is characterized by pyrite-bearing quartz-calcite-tourmaline veins invading metasedimentary and metavolcanic rocks. Finally, core intersections showing brecciated and sheared quartz veins with moderate epidotization/chloritization and pyrite, pyrrhotite and sphalerite stringers in wacke and basalts were encountered at the Golden Eye site. The geological characteristics of the mineralized intersections are similar to those observed in gold bearing surface samples. Assays are pending.
The technical and scientific content of this news release has been reviewed and approved by Michel Boily, PhD, P.Geo, VP Exploration for Genius Metals and Qualified Person (QP) as defined by Regulation 43-101 respecting Standards of Disclosure for Mineral Projects.
Closing of a First Tranche of Financing
Under the Private Placement, the Corporation issued and sold:
The Corporation will use the net proceeds of the sale of Flow-Through Units and Flow-Through Shares to incur qualifying expenditures on its Sakami Property, and the net proceeds of the sale of Units for exploration on its mining properties and for general working capital purposes.
In connection with the first tranche of the Private Placement, the Corporation paid finder’s fees to arm’s length third parties in the amount of $81,800.
All securities issued pursuant to the Private Placement are subject to a hold period under applicable securities laws, which will expire four months plus one day from the date of their issuance.
Three directors and one officer of the Corporation have participated in the Private Placement and were issued an aggregate of 62,500 Common Share Units and 366,571 Flow-Through Shares. Such participation in the Private Placement is a “related party transaction” as defined in Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions. The Private Placement is exempt from the formal valuation and minority shareholder approval requirements of Regulation 61-101 as neither the fair market value of the securities issued to insiders nor the consideration for such securities by insiders exceed 25% of the Corporation’s market capitalization. The Corporation did not file a material change report 21 days prior to closing of the Private Placement as the participation of insiders had not been confirmed at that time.
About Genius Metals
Genius Metals is a Canadian mineral exploration company focused on the acquisition, exploration and, if warranted, development of natural resource properties of merit in Canada.
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We acknowledge the [financial] support of the Government of Canada.