BURLINGTON, ONTARIO--(Marketwire - Feb. 27, 2013) - Green Swan Capital Corp. (TSX VENTURE:GSW) ("Green Swan") announces its intention to immediately effect a non-brokered common share financing (the "Offering"). The proceeds of the Offering will be used to advance exploration on some of GSW's mining properties and for working capital.
Ryliejack, inside Pretium's Tenure Block
Part of the proceeds of the Offering will fund the first round of exploration at Green Swan's 100%-owned Ryliejack Property. Ryliejack is uniquely located within Pretium Resources Inc.'s tenure block, near Pretium's Brucejack and the Valley of the Kings.
A 2009 Pretium drill hole in the Valley of the Kings intersected 16,949 grams per tonne gold uncut over 1.5 meters.
Pretium has recently reported that its high-grade gold resources (5.0 grams of gold equivalent per tonne cut-off) for the Valley of the Kings totals 8.5 million ounces of gold in the Indicated Mineral Resource category (16.1 tonnes grading 16.4 grams of gold per tonne) and 2.9 million ounces of gold in the Inferred Mineral Resource category (5.4 million tonnes grading 17.0 grams of gold per tonne), and that the Valley of the Kings remains open to the east and west along strike and at depth. A feasibility study for a high-grade underground mine in Brucejack's Valley of the Kings is underway and expected in the second quarter of 2013.
For advancing Brucejack, Pretium will receive the 2013 Bill Dennis Award from the Prospectors & Developers Association of Canada ("PDAC").
Ryliejack, owned by Green Swan, covers 108 hectares, and is entirely surrounded by Brucejack. Its northwesterly corner is six kilometres from Brucejack's Valley of the Kings.
Green Swan's exploration at Ryliejack will likely consist of soil sampling and will be carried out in April or May of 2013, weather permitting. Green Swan believes Ryliejack to be highly prospective.
The Offering will also enable Green Swan to carry out Phase 2 exploration at Mikayla, which will advance the previously announced sale of Mikayla to Interactive Capital Partners Inc. (see Green Swan's press release of January 8, 2013). Phase 1 at Mikayla, conducted in late 2012, involved an airborne geophysical survey, the encouraging results of which were released February 8, 2013.
A former owner of part of Mikayla made public disclosure that a large IP anomaly underlies the property, on which 12 diamond drill holes had been drilled. Included in those results was a 14.8 metre interval in hole 96-3 that averaged 0.10% molybdenum, 0.05% copper and 15.1 g/t silver. Green Swan will use that historic information and the results of its own airborne geophysical survey to plan and carry out Phase 2.
The Offering will consist of Common Share Units (each a "CSU") of Green Swan at a price of $0.05 per Unit. Each CSU shall consist of one (1) Green Swan common share ("Common Share") and one warrant to purchase an additional Common Share at a price of $0.10 (the "Warrant") for a period of twelve (12) months from closing (the "Warrant Expiry Date").
The Offering will also consist of FlowThrough Units of Green Swan (each a "FTU") at a price of $0.06 per FTU. Each FTU shall consist of one (1) flowthrough Common Share of GSW and a Warrant.
If the closing price of the Common Shares as quoted by the primary exchange upon which the Common Shares trade or are quoted is equal to or greater than $0.30 for a period of twenty (20) consecutive trading days, then the Warrant Expiry Date shall be the earlier of thirty (30) calendar days after the end of such 20-day trading period and the Warrant Expiry Date, without further notice or action being required by Green Swan, and if any Warrants remain unexercised as of such accelerated warrant expiry date such unexercised Warrants shall expire.
Green Swan will pay to any participating registrant a cash commission of 8% of the gross proceeds of the Offering sourced by such registrant and broker warrants equal to 8% of the number of units issued by Green Swan with respect to the Offering as sourced by such registrant. These broker warrants have the same characteristics as the Warrants.
The transactions contemplated above are subject to regulatory approval.
The content of this news release has been reviewed by Rick Walker, B.Sc., M.Sc., P. Geo., a Qualified Person for the purposes of NI 43-101, with the ability and authority to verify the authenticity and validity of the data herein.
About Green Swan Capital Corp.
Green Swan Capital Corp. is a Canadian company engaged in the business of acquiring, exploring and dealing in mineral properties in Canada. Green Swan, with fewer than 20,000,000 shares outstanding, is well-poised to deliver real value through exploration and through corporate M&A activities.
This news release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. GSW cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what GSW currently foresees. Discussion of the various factors that may affect future results is contained in GSW's recent filings, available on SEDAR. GSW assumes no liability for repeating or referring to any facts, statements, releases, data or reports disseminated by any other issuer. Any reference to any other issuer should be cross-checked for accuracy and context by the reader.
On Behalf of the Board of Directors
GREEN SWAN CAPITAL CORP.
Peter M. Clausi, President, CEO and Director
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.
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 release.