New Dimension Announces Financing & Prepares for Drilling at Savant Lake Gold Project
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
New Dimension Resources Ltd. (TSXV: NDR) (the "Company" or "New Dimension") announces it plans to raise up to $1.3 million through a non-brokered private placement ("Private Placement"). The Private Placement will be comprised of Units, at a price of $0.10 per Unit, as well as Flow-Through Shares, at a price of $0.13 per Flow-Through Share.
Each Unit shall be 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 for a period of 24 months immediately following the closing date. 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.
Net proceeds of this private placement will be used for exploration and drilling on the Savant Lake Property ("Property") as well as for general working capital purposes.
A finders' fee may be payable on the sale of the Units and Flow-Through Shares.
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 has prioritized 12 drill targets for testing from the numerous targets developed as a result of the 2016 field program. The mapping and prospecting campaign successfully advanced the understanding of multiple target types on the project, including iron formation related gold, the original project target priority. In addition, increased attention is being directed to gold-bearing volcanogenic massive sulfides ("VMS") and a newly recognized, shear-related style of gold mineralization; both of which were highlighted by the 2016 airborne VTEM (Versatile Time Domain Electro Magnetic) survey which also outlined a number of additional targets. The newly recognized shear zone-related type of gold mineralization significantly expands the discovery potential of the project. 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.