North Peak Resources Ltd. (TSX-V: NPR) announces that it has completed its previously announced non-brokered private placement for aggregate gross proceeds of CAD$2 million. In connection with the Private Placement, 2,272,727 common shares of the Company were issued at a price of CAD$0.88 per Common Share.
The Company also announces that it has launched a range of work programs on the Prospect Mountain Mine complex located in the Battle Mountain-Eureka trend in Nevada. In its May 23rd press release, the Company reported that final TSX Venture Exchange approvals for its acquisition of the Property had been received. A Nevada LLC structure that will hold the claims and permits that constitute the Property is being established, with the Company holding an initial 80% interest and Solarljos, LLC (controlled by the Erickson family of Nevada) holding the remaining 20% interest (which the Company has the right to acquire).
“On the Diamond Mine’s main 7800 level, LIDAR surveys and comprehensive mapping has been completed, but it is the airborne geophysics surveys and the mid-June channel sampling which, along with a gravity survey, will direct the drilling programs both underground and on surface,” said Brian Hinchcliffe, North Peak CEO. “Strategic underground drilling programs will be developed and executed from these data acquisition programs, which also help identify gold surface drilling targets.”
“We are excited to see these exploration programs launched against the background of the polymetallic discovery success by others in this Eureka district,” said Ty Erickson, MD. “These modern exploration programs will greatly compliment the work we undertook establishing Prospect Mountain’s permitting profile over the years.”
The Property, which includes the Diamond and Excelsior mines, is more than 1,700 acres of high elevation lands with an underground infrastructure consisting of 4 shaft complexes and some 11 miles of tunnels where mining operations focused on the district’s famous high-grade gold-silver-lead ores dating back to 1872. The Property’s historic underground production areas sit on the western side of the Jackson fault, approximately 3 km’s south of the Ruby Hill complex, but the most recent exploration drilling programs in the late 1990’s targeted surface gold targets. Underground shafts and levels are accessed mainly through the Diamond Tunnel at the 7800 level from the east and from the Silver-Connor tunnel from the west, which is at an elevation level of 7200 feet.
The securities issued in connection with the Private Placement are subject to a four-month hold period from the closing of the Private Placement, in accordance with applicable securities laws.
The Company intends to use the net proceeds from the Private Placement to continue to secure mining assets, the continued development of its business and for general and administrative expenses.
Subject to the final review by the TSX Venture Exchange, the Company has agreed to pay a cash finder’s fee to Rupert Williams of CAD$96,500 in respect of the aggregate sales to subscribers under the Private Placement that were introduced by him.
Mr. Mike Sutton, P.Geo., a director of the Company, is the Qualified Person, as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, who reviewed and approved scientific and technical disclosure in this news release. The Qualified Person has not reviewed the mineral tenure, nor independently verified the legal status and ownership of the Property or any underlying property agreements.
About North Peak
The Company is a Canadian based gold exploration and development company that is listed on the TSX Venture Exchange. The Company is focused on acquiring historic sites, with low cost producing gold and other metals properties, with near term production potential and 8+ year mine life in the northern hemisphere.
The Company can give no assurances at this time that its properties and interests will fulfil the Company’s business development goals described herein. Trading in the securities of the Company should be considered highly speculative.
This press release is not an offer of the Company’s securities for sale in the United States. The Company’s securities may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and applicable U.S. state securities laws. The Company will not make any public offering of its securities in the United States. The Company’s securities have not been and will not be registered under the U.S. Securities Act.
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