VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 14, 2014) -
THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Homestake Resource Corporation (TSX VENTURE:HSR) (FRANKFURT:B6IH) ("Homestake" or the "Company") has closed the final tranche of its previously announced private placement by issuing 6,005,000 units at a price of $0.05 per unit for gross proceeds of $300,250. Each unit consists of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share at an exercise price of $0.05 for a period of 3 years. All securities issued in this tranche of the financing include a legend restricting trading of the securities until December 15, 2014. The Company will pay finders' fees on a portion of the financing. The financing and payment of finders' fees is subject to TSX Venture Exchange acceptance.
The net proceeds from this private placement will be used for the continued exploration of the Kinskuch Project and for general working capital purposes.
Homestake Ridge Update
Drilling continues on the newly discovered mineralized zone called the Slide target, first identified in 2013 and located southeast of the Homestake Silver deposit (see news release NR-10-13, November 25, 2013). Six core holes totaling 2,577 metres have been completed as part of the 2014 exploration program (see figure 1,) which is expected to include +7,500 meters of core drilling budgeted at a cost of $3 million. Agnico Eagle Mines Ltd. has assumed project management under an option agreement to fund exploration and development costs of $25.3 million by December 31, 2017 to earn a 65% interest in the property. Agnico Eagle is in the third year of the six-year option. Assays results are pending.
To view "Figure 1: Longitudinal section showing approximate location of the first six drill holes," please visit the following link: http://media3.marketwire.com/docs/HSR%20NR-07-14%20Figure%201.pdf.
For further information, please visit the Company's website at www.homestakeresource.com.
Robert Macdonald, MSc., PGeo., is Homestake's Vice President of Exploration and is the Qualified Person responsible for the supervision and preparation of the technical information in this disclosure.
On behalf of the Board of Directors,
"Joseph Anthony Kizis, Jr."
President & Director, Homestake Resource Corporation
About Homestake Resource Corporation
Homestake Resource Corporation is a Canadian-based exploration company which operates two major projects totaling 661 sq. km in the emerging Kitsault Mineral District. The primary asset is the Homestake Ridge Project, a gold-rich epithermal/VMS-related vein system containing NI 43-101 compliant resource estimates. The Company has entered into an option with Agnico Eagle Mines Limited to fund exploration and development costs of $25.3 million by December 31, 2017 to earn a 65% interest in the property. Homestake Resource Corporation is affiliated with Manex Resource Group, a private company comprised of an exceptional multi-disciplinary team of professionals, with specific expertise in all the areas of exploration, development and public company administration.
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.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Homestake Resource Corporation does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.