New Dimension Closes First Tranche of Non-Brokered Private Placement -- Savant Lake Drill Program to Begin Q1 2017
New Dimension Resources Ltd. (TSXV: NDR) (the "Company" or "New Dimension") announces that the first tranche of the non-brokered private placement announced on November 16th, 2016 has closed and a total of 5,310,000 Units at a price of $0.10 per Unit and 692,311 Flow-Through Shares priced at $0.13 have been issued for gross proceeds of $621,000.50. The Company will close the second tranche before January 30, 2017.
The majority of funds realized from this placement will go toward drill testing priority targets identified during the Company's 2016 exploration programs on its Savant Lake Gold Project. The drill targets prioritized were identified by interpretation of new geological data and the data obtain from the 2016 airborne VTEM geophysical survey. The Company expects to commence field activities in late January 2017 when ice conditions permit. New Dimension is highly motivated to test these new targets as they represent proven geologic environments that support discovery of significant gold mineralization in settings that include iron formation in a classic Archean greenstone belt combined with a confluence of major structures hosting local and regional gold occurrences and a setting comparable to known major gold deposits in the Canadian Shield. Increased attention is also being directed to gold--bearing volcanogenic massive sulfides and a newly recognize shear-related style gold mineralization.
Each Unit issued is comprised of one common share and one-half warrant. Each whole warrant will entitle the holder to acquire one common share of New Dimension at a price of $0.20 per share until December 28, 2018. The warrants will be subjected to an accelerated exercise provision if the share price of New Dimension trades at or above $0.50 for 10 or more consecutive trading days.
The Company has paid aggregate finders' fees in the amount of $12,166.25 as well as issued 119,271 shares and 55,650 warrants. The finders' warrants have the same terms as the warrants issued under the financing.
All securities, including the finders' warrants and shares, issued in connection with this private placement are subject to a four month hold period and may not be traded until April 29, 2017.
About Savant Lake Gold Project
The Savant Lake property covers a classic iron formation setting with associated gold occurrences within a prospective greenstone belt in northwestern Ontario. The core of the property, acquired in early 2016, has not been significantly explored since the early 1980's. The property hosts multiple gold occurrences that have returned values as high as 138.9 g/t gold from exposed outcrops. New Dimension was attracted to the Savant Lake property for its iron formation-associated gold characteristics. The company believes the setting is analogous to Goldcorp's Musselwhite Mine (located some 200 km. to the north) as well as Agnico Eagle's Meadowbank Mine and newly discovered Amaruq deposit in Nunavut.
The Company can earn a 100% interest in the Savant Lake Property by paying the vendors C$100,000 and issuing 600,000 shares (100,000 shares issued) of New Dimension over a four-year period. The Property is subject to a 2% NSR, of which one percent (1%) can be purchased for C$1,000,000.
About New Dimension Resources Ltd.:
New Dimension is engaged in the acquisition, exploration and development of quality mineral resource properties throughout the Americas with a focus on potential gold and silver deposits. The Company is currently focused on mineral projects in Canada with a priority directed toward the Savant Lake gold property.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Fred Hewett the Company's President & CEO, a director and a Qualified Person under NI 43-101.
ON BEHALF OF THE BOARD
NEW DIMENSION RESOURCES LTD.
"Fred G. Hewett"
Fred G. Hewett, P.Eng.
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release may contain forward looking statements which are not historical facts, such as statements of belief of similarity of geological characteristics or features, statements of unverified drilling and sampling results and expectations of receipt of permits and plans for future work. Forward looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, unexpected geological factors, exploration results, results of verification work and unanticipated regulatory obstacles. See New Dimension's filings for a more detailed discussion of factors that may impact expected results.
This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.