Opawica Explorations Inc.
TSX : OPW

Opawica Explorations Inc.

October 02, 2007 16:10 ET

Opawica $0.08 Unit Offering Closes and Field Update on Ontario Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2007) - Opawica Explorations Inc. ("Opawica" / the "Company") (TSX:OPW) announces that it has closed the non-brokered flow-through private placement unit offering (the "Offering") announced on September 21, 2007. The Offering was oversubscribed and, pursuant to TSX acceptance of the Offering received on October 1, 2007, a total of 14,350,000 units were issued at $0.08 per unit. Each unit consists of one Flow Through share and one half of a non-transferable share purchase warrant. One whole warrant entitles the holder to acquire one further common (non-flow through) share of the Company at $0.09 per share for a one year term. A total of 418,750 units were taken up by insiders of the Company.

All of the shares and warrants issued pursuant to the Offering are subject to a four-month hold period ending February 2, 2008.

The $1,148,000 in proceeds derived from the Offering will be applied to qualified CEE expenditures in respect of the Company's ongoing exploration associated with its Atikwa Lake property, its Matachewan property and its Dingman / Veley-Madoc group properties, all located in Ontario, Canada. These properties may be viewed on the Company's website at: www.opawica.com.

Due diligence fees of $30,000 cash and 375,000 shares of the Company deemed at $0.08 per share has been paid in connection with the Offering. In addition, a 10% finders fee has been paid on a portion of the Offering consisting of $21,625 in cash and 270,313 shares of the Company issued at a deemed price of $0.08 per share. Further finders fees payable in compensation warrants of 5% on a portion of the Offering has also been paid. These warrants entitle the holder to acquire a further 270,313 shares of the Company at $0.08 per share for a one year term. None of the securities issued as finders fees or due diligence fees are "flow-through" shares.

MATACHEWAN, ONTARIO, Au, Cu

The Company announces the following drill hole results from its Matachewan properties located in north-eastern Ontario.

Hole OPW-10 drilled at Camking south towards the northern part of the Matachewan property, between 169m to 190m, returned anomalous gold values ranging between 10ppb and up to 620 ppb Au. OPW-12 drilled also at Camking south contained no significant values. OPW-16 also drilled at Camking carried intermittent anomalous gold values from 61m to 204m ranging between 10ppb and up to 900 ppb Au.

At the East Lake zone, in the middle of the property, hole OPW-14 returned intermittent gold mineralization from 22m to 207m ranging between 10 ppb and up to 2.32 g/t Au over one meter.

Complete assay results are pending on a further 7 holes and three trench locations.

Trenching is ongoing on two areas of this property and subject to positive assay results a further 3 holes are planned at Matachewan. Drilling is scheduled to resume upon receipt of all trench and drill hole assay results from the Matachewan project which are expected by early November, 2007.

ATIKWA LAKE, ONTARIO, Cu, Au

The Company also announces that it is waiting on assay results from a 52m intercept with varying amounts of chalcopyrite mineralization from its Atikwa Lake property located near Kenora, Ontario. This hole was drilled about 100m south west of the Open Pit Zone to a vertical depth of approximately 90m. Assays are expected within the next two weeks.

A deep penetrating geophysical survey is ongoing along with the integration of all historic and current drill hole logs and assays to determine where deep and infill drilling is required in the area of the Open Pit Zone in an attempt to upgrade the current resource at the Atikwa Lake Open Pit Zone from its current Inferred Mineral Resources designation as previously announced by the Company on September 5, 2007.

DINGMAN - VELEY GROUP, ONTARIO, Au

Drilling has commenced at the Company's Veley gold property about 75km north east of Belleville, Ontario. The program will test at least two veins discovered by past trenching on the property. Seven holes of about 125m each are planned for an aggregate of 900m of drilling.

The Qualified Person for the above properties is Mr. Fred Sharpley, P.Geo., of Kirkland Lake, Ontario.

All of the above drill hole results are not true widths and further drilling is required to determine same.

Fire assays on samples from the Matachewan, Ontario, property was carried out by Swastika Laboratories of Kirkland Lake, Ontario.

Shares Issued: 130,199,180

Stock Options: 9,150,000 @ $0.07

Warrants: 17,657,813 @ $0.07 to $0.09

Restricted Shares: 14,995,313

Contact Information

  • Opawica Explorations Inc.
    Dan M. Clark
    President
    (604) 681-3170
    (604) 681-3552 (FAX)
    Website: www.opawica.com