VANCOUVER, BC--(Marketwired - September 14, 2016) - Brixton Metals Corporation (TSX VENTURE: BBB) (the "Company" or "Brixton") is pleased to announce that it has closed its previously announced brokered private placement of units and flow-through common shares for aggregate gross proceeds of $3,270,015 (the "Private Placement"). The Private Placement was brokered by Red Cloud Klondike Strike Inc. and M Partners Inc. (together, the "Agents"). The Company intends to use the proceeds of the Private Placement to advance its Thorn project and its Langis project, and for general working capital.
The Private Placement consisted of the issuance of 2,885,700 units ("Units") at a price of $0.70 per Unit for proceeds of $2,019,990 and the issuance of 1,666,700 flow-through common shares (the "FT Shares") at a price of $0.75 per FT Share for proceeds of $1,250,025. Each Unit will consist of one common share and one common share purchase warrant ("Warrant") with each Warrant exercisable by the holder into one common share of the Company at a price of $1.00 per share for a period of 24 months from the closing date. On closing of the Private Placement, the Agents were paid a commission comprised of a cash fee in the amount of $228,901.05 and were issued an aggregate total of 318,668 Agents' warrants. Each Agents' warrant is exercisable to acquire one common share of the Company at a price of $0.70 for a period of 24 months from closing of the Private Placement. All securities issued under the Private Placement, including securities issuable on exercise thereof, are subject to a hold period expiring four months and one day from closing date.
Langis Project Update
Brixton has completed a total of 15 core holes at its Langis Project for a total of approximately 3,150 metres. The first 3 holes were released August 11, 2016, where hole 3 intersected 4.15m of 4.90 g/t Au and 397.00 g/t Ag from 156.05m and from 179.40m a 3.13m interval returned 1,944.60 g/t Ag. The results for the balance of this initial drilling shall be released as they become available. The Company plans to conduct an IP geophysical survey for the area and is continuing its historical data compilation and further drilling will be designed based on results.
Thorn Project Update
The Company currently has crews at its Thorn Camp for a gold focused exploration program consisting of: a soil-rock sampling for approximately 2,000 samples; a 20 kilometre IP Geophysical survey over the newly identified Chivas gold zone; and 3000-4000m of core drilling at the Outlaw and Aberlour gold targets combined. Brixton has increased, through staking, its total land holdings at Thorn to 99,560 Hectares or 996 square kilometers.
The Company granted 2,600,000 Options to Employees, Directors, Executives and Consultants of the Company as per the Company's stock option plan approved at its recent annual general meeting. The options are exercisable for a ten year period at a price of $0.70 per share.
About Brixton Metals Corporation
Brixton Metals is a Canadian exploration company focused on the advancement of its gold and silver projects toward feasibility.
The Langis project is located 500 kilometres north of Toronto, Canada near Lake Timiskaming. The high-grade silver mineralization occurs as steeply-dipping veins within any of the three main rock types: Archean volcanics, Coleman Member sediments and Nipissing diabase. The Cobalt camp has historically produced over 500 million ounces of silver. Brixton wholly owns two past producing mines in the Cobalt-silver camp, the Langis and Hudson Bay mines. The Langis mine produced 10.4Moz Ag at 25 oz/t Ag and the Hudson Bay mine produced 6.4 Moz Ag at 123 oz/t Ag.
The wholly owned Thorn Project is located in northwestern British Columbia, Canada, approximately 105 km ENE from Juneau, AK. The Thorn project hosts a district scale Triassic to Cretaceous volcano-plutonic complex with many styles of mineralization related to porphyry and epithermal environments. Targets include sediment hosted Au-Ag, Ag-Au-Pb-Zn diatreme-breccia, Au-Ag-Cu veins; and volcanic hosted structurally controlled Au-Ag. Brixton has established a maiden inferred resource of 21.5Moz AgEq from 7.4 Mt at 89.75 g/t AgEq based on limited drilling.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Chairman and CEO
Neither the 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 release.
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, the proposed use of proceeds, proposed timing of exploration and development plans, or other similar expressions. All statements, other than statements of historical fact included herein including, without limitation, statements regarding the exploration potential of the Langis property based on historical information resources estimates on the Thorn Project are forward looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; and the additional risks identified in the annual information form of the Company or other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.