TORONTO, ONTARIO--(Marketwired - Oct. 27, 2016) - Nitinat Minerals Corporation (the "Corporation") (TSX VENTURE:NZZ) is pleased to announce that it has entered into an assignment agreement (the "Agreement") with Inspiration Mining Corporation ("Inspiration"), an arm's length party, to acquire Inspiration's right to acquire an undivided one hundred percent (100%) interest in certain mineral claims, known as the Carscallen Property (the "Property").
Pursuant to the terms of the Agreement, the Corporation was required to make a payment of $40,000 on the execution of the Agreement (which such payment has been made) and issue an aggregate of 2,200,000 common shares in its capital (the issuance of which is subject to regulatory approval). The Corporation is required to make additional payments of $20,000 on October 19, 2017 and $40,000 on October 19, 2018. The Corporation shall have the right to set-off its exploration expenditures on the Property against these options payments.
In the event that the Corporation is able to obtain an intersection of at least 3 grams of gold per ton over one meter, the Corporation will be required to issue an additional 2,400,000 common shares in its capital. In addition, in the event that the Corporation is able to establish a commercial mine of with at least a 250,000 ton ore body having a minimum grade of 2 grams of gold per ton, the Corporation will required to issuance an additional 2,400,000 common shares in its capital.
Upon the payment of the option payments of October 19, 2016 and 2017, the Corporation will have an undivided 100% interest in the Property subject to a 3% net smelter royalty ("NSR") in favour of the original optionors. The Corporation shall have the right to purchase 2 of the 3% NSR royalty for an aggregate cash payment of $3 million.
The Corporation is also pleased to announce that it intends to raise gross proceeds of up to $300,000 through a non-brokered private placement of up to 3 million units (the "Units") of the Corporation at a price of $0.10 per Unit. Each Unit will consist of one (1) common share and one (1) common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to purchase one (1) common share for a period of two (2) years from date of issuance. Each warrant is exercisable at an exercise price of $0.15 per Warrant.
The non-brokered private placement is subject to all necessary regulatory approvals. The securities being issued in the private placement will be subject to a four-month hold period in accordance with applicable Canadian securities laws. The Corporation intends to use the net proceeds for general working capital.
FOR THE PURPOSE OF PROVIDING INFORMATION RELATING TO THE CARSCALLEN PROPERTY, THE CORPORATION IS RELYING ON HISTORICAL INFORMATION. ALL INFORMATION PERTAINING TO THE CARSCALLEN PROPERTY WAS DERIVED FROM HISTORICAL GEOLOGICAL REPORTS AND HAVE NOT BEEN VERIFIED.
About the Carscallen Property
The Property is located 25 kilometres west of the center of the City of Timmins and 7 kilometres north of the Lake Shore Gold, Timmins Mine which produced an aggregate of 185,600 ounces in 2014.
Previous workers stripped a large area on the Property revealing quartz-carbonate-sericite alteration that is exposed for 25 metres across strike and at least 20 metres along strike and is overlain by overburden to the north and east. The alteration package contains quartz-carbonate vein stockwork with veins from 3 to 7 centimetres thick and dipping from 10° to 30° to the southeast. There are many similarities with the quartz-carbonate-sericite alteration on the Property and mines in the Porcupine Mining Camp which has produced approximately 70 million ounces of gold to present.
Some veins are a light smoky colour and others contain associated black tourmaline all of which display pyrite haloes of up to 5%.
There is a small timbered shaft 220 metres northwest of the stripped area. The depth of the shaft is presently unknown. A regional north/south fault is exposed in outcrop 220 metres northwest of the above mentioned shaft. The fault exhibits abundant quartz-carbonate veining in a carbonate-sericite alteration package similar to the stripped area. A large pit was excavated 56 metres southwest of the fault exposure adjacent to a quartz-carbonate vein that appears to be greater than 1 metre in thickness and dips to the west.
Grab samples were taken in 2013 and 2015 and returned values from trace to 3.21 gpt gold. The shaft 1 area returned values of 0.007 gpt gold and 0.009 gpt gold, the shaft 2 area returned 0.261 gpt gold. The stripped area had 18 samples taken with values from 0.0025 gpt gold to 3.21 gpt gold. Eight of the samples were over 0.5 gpt gold. Historic assays of grab samples have been reported as high as 4.51 ounces per ton (155 gpt) in a MNDM publication, Mineral Deposits Circular 13 but values have not been substantiated as yet. Investors are cautioned that grab sample are selected samples and are not necessarily representative of mineralization hosted on the Carscallen Property.
The qualified person in charge of the Carscallen Property and the person who prepared the technical data in this release is William McRae, PGeo., MSc.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.