NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, July 06, 2018 (GLOBE NEWSWIRE) -- Olivut Resources Ltd. (“Olivut” or the “Company”) (TSXV:OLV) President Leni Keough states: “It is an exciting and welcome development for Olivut that we will be exploring a new diamond project and that we have successfully raised the necessary financing required to meet earn-in commitments and support general corporate purposes and other work on the HOAM Project.” The Company closed a non-brokered private placement for aggregate gross proceeds of $1,600,000 (the “Private Placement”). The Private Placement was comprised of (i) 666,667 flow-through common shares (the “FT Shares”) for proceeds of $100,000 at a price of $0.15 per FT Share (the “FT Placement”), and (ii) 12,500,000 common shares (the “Common Shares”) for proceeds of $1,500,000 at a price of $0.12 per Common Share (the “Common Share Placement”). The FT Shares and the Common Shares are subject to resale restrictions pursuant to applicable securities laws requirements and will not be freely tradable until four months after the date of issue.
The Company paid a finder’s fee of $37,500, equal to 5% of certain gross proceeds of the Private Placement, to a registered dealer.
The TSX Venture Exchange approved for listing the common shares issued under the Private Placement on July 4, 2018.
Olivut will use some of the proceeds of the Private Placement to fund exploration on the Horton Project (as defined below) and the balance of the proceeds of the Private Placement for exploration on the HOAM Project (as defined below) and for general corporate purposes.
The Company is also very pleased to announce that it has signed an Option Agreement with Talmora Diamond Inc. (“Talmora”) to earn 50% on Talmora’s Horton Project, located in Canada’s Northwest Territories (the “Horton Project”), by spending $1,200,000 over two years and making a $200,000 payment to Talmora. Olivut is the operator. A summer field season of helimag and follow-up drilling is planned to test multiple targets over the next several months. Based on a combination of: favourable diamond stability indicator minerals found regionally and locally, including macro diamonds found in regional samples to the west and northwest; specific target geophysics; faulting on a regional and local scale; occurrence of diamondiferous kimberlites to the north and south east, as well as other geological data affecting the area, the Company considers the Horton Project to have the potential to host economic kimberlite bodies of significant size.
The Company believes the Horton Project could be the source of the numerous (18) macro diamonds found in regional samples as well as the positive indicator mineral chemistry found regionally. The helimag survey will provide additional detail for drilling. Although Talmora has been active in the area, it has not been able to conduct meaningful exploration on the Horton Project due to a lack of funding during a prolonged negative market environment. New research and geological information has added further support to a very compelling exploration project.
Numerous targets are drill ready on the HOAM Project and a detailed helimag is proposed for the remaining regional geophysical targets in order to finalize the drill priority list. Completion of these work programs is contingent on the raising of additional funds in excess of those committed to the Horton Project.
Olivut is a diamond exploration company with a 100% mineral interest in the HOAM Project (the “HOAM Project”) and an option to earn 50% interest in the Horton Project, both projects being located in Canada’s Northwest Territories. Please visit www.olivut.com for detailed corporate and project information.
This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States. The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipate in such statements.
Martin St. Pierre, P.Geophys., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure in this press release.
Leni Keough, P.Geo.
President and Chief Executive Officer
For further information, please contact:
Leni Keough
President and Chief Executive Officer
Olivut Resources Ltd.
(780) 866-2226
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.