VANCOUVER, Canada –- Viscount Mining Corp. (TSX-V: VML) (OTCQB: VLMGF) (“Viscount” or the “Company”) is pleased to announce the completion of a Non Brokered Private Placement raising gross proceeds of $1,250,000 from the issuance and sale of 5,000,000 Units at a price of $0.250 per Unit. Each Unit consists of one (1) common share (“Common Share”) of the Company and one (1) share purchase warrant (“Warrant”). No new insiders were created, nor any change of control occurred, as a result of this Private Placement.
Each Warrant will entitle the holder thereof to purchase one additional common share of the Issuer (a “Warrant Share”) for a period of 1 year from the Closing Date at an exercise price of $0.35 per Warrant Share. The Issuer has the right to accelerate the expiry date of the Warrants in the event that the Shares trade on a recognized exchange at more than $0.50 for a 15 day period, which can include days where no Shares trade.
Finder fees were paid totaling $29,575.00 cash and 84,500 broker warrants which will have the same terms and conditions as unit warrants.
The Company intends to use the net proceeds of the Private Placement for a Phase 2 Drill Program to further advance its 100%-owned Silver Cliff property in Colorado as well as for general working capital. This follows the successful Phase 1 Drill Program from last fall, 2016. Since then Viscount has acquired significant additional historical records from various sources that aided recently-completed surface sampling, geologic mapping, geophysics, geochemistry work. Viscount’s primary goal is to confirm the historical geological work and resource estimates to substantiate the value of Silver Cliff.
Kaare Foy, Chairman commented, “We are very pleased with the confidence of key investors and their support of the Company as we continue to develop our two key projects at Silver Cliff, Colorado and Cherry Creek, Nevada.”
The table below displays summary data for Viscount’s 2016 “K” series of 2.5-inch diameter holes (HQ core) along with available data for the historic holes which were twinned. Although rock units dip or slope at 2° to 5° toward the east-southeast as noted under the heading “Silver Cliff Geology”, the present interpretation is that silver-bearing mineralization and silica have replaced portions of a porous limestone reef unit. Such replacement is typically uneven rather than uniformly tabular. Because of this true widths are not estimated.
Phase 1 Drilling Assay Results
|2016 DDH Results Compared With Holes Twinned|
|Hole #||From (ft.)||To (ft.)||Dip (°)||Length (ft.)||oz/t||g/t||Easting (m)||Northing (m)|
Quality Assurance/Quality Control (“QA/QC”) Measures, Chain of Custody
The Company has implemented a QA/QC program using best industry practices at the Silver Cliff Property. Drill core samples are sawn in half lengthwise and one half transported in securely-sealed bags to the ALS Canada Ltd. laboratory in Reno, Nevada and Vancouver, BC, for analysis. Prior to transport, individual samples are labeled, placed in plastic sample bags and sealed. Groups of samples are then placed into durable rice bags that are then shipped. The sample pulps and rejects will be retrieved from ALS. All samples were analyzed for Ag and 50 other elements by ALS method “Ultra Trace Aqua Regia ICP-MS” with code ME-MS41. In the case of Ag determined by this method to be in excess of 100 ppm, a further analysis for Ag was done utilizing method “Ore Grade Aqua Regia ICP-AES” with ALS code Ag-OG46. For the three 5-ft interval samples from K16-01 containing more than 1,500 ppm Ag, the ALS method “Ag 30g FA – GRAV finish WST-SIM” with code Ag- GRA21 was utilized.
About the Silver Cliff Property
The Silver Cliff property lies within the historic Hardscrabble Silver District in Colorado. The Property consists of 96 lode claims where high grade silver, gold and base metal production came from numerous mines during the period 1878 to the early 1900s. It is located 44 miles WSW of Pueblo, Colorado, and has year-around access by paved road. The property underwent substantial exploration between 1967 and 1984. The major explorers were Freeport, Hecla, Homestake, Moly Corp, Coca Mines and Tenneco Minerals.
The property is interpreted to encompass a portion of a large caldera and highly altered sequence of Tertiary rhyolitic flows and fragmental units which offers potential to host deposits with both precious and base metals. This has been demonstrated in the mineralization historically extracted from the numerous underground and surface mining operations. Drilling in the 1980s by Tenneco resulted in a historical pre-feasibility study which formed the company’s decision to put the property into production. Plans were halted due to the restructuring of Tenneco after it was sold.
The scientific and technical information contained in this news release has been reviewed by Dallas W. Davis, P. Eng., FEC., an independent consulting geologist who is a “Qualified Person” as such term is defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43- 101”).
About Viscount Mining (TSX VENTURE: VML) (OTCQB: VLMGF)
Viscount Mining is a project generator and an exploration company with a portfolio of silver and gold properties in the Western United States, including Silver Cliff in Colorado and Cherry Creek in Nevada.
The Silver Cliff property in Colorado lies within the historic Hardscrabble Silver District in the Wet Mountain Valley, Custer County, south-central Colorado. It is located 44 miles WSW of Pueblo, Colorado, and has year-around access by paved road. The property consists of 2,029 acres where high grade silver, gold and base metal production came from numerous mines during the period 1878 to the early 1900’s. The property underwent substantial exploration between 1967 and 1984.
The property is interpreted to encompass a portion of a large caldera and highly altered sequence of Tertiary rhyolitic flows and fragmental units which offers potential to host deposits with both precious and base metals. This has been demonstrated in the mineralization historically extracted from the numerous underground and surface mining operations. Drilling in the 1980s by Tenneco resulted in a historical pre-feasibility study which formed the company’s decision to put the property into production. Plans were halted due to the restructuring of Tenneco after it was sold. Other companies exploring here besides Tenneco Minerals have included: Freeport, Hecla, Homestake, Moly Corp, Coca Mines and Tenneco Minerals. In January 2017, Viscount Mining reported additional high grade silver intersections from the drill program completed in December 2016.
The Cherry Creek Property is focused on exploration in the immediate vicinity of an area commonly known as the Cherry Creek Mining District, located approximately 30 miles north of the town of Ely, in White Pine County, Nevada. Cherry Creek consists of over 400 unpatented and patented claims as well as mill rights, and is comprised of more than 8,000 acres. Cherry Creek includes more than 20 past producing mines including Blue Bird, Chance Mine, Filmore, Last Chance, Exchequer/ New Century Mine, Ticup and Motherlode mines.
For additional information regarding the above noted property and other corporate information, please visit the Company’s website at www.viscountmining.com
ON BEHALF OF THE BOARD OF DIRECTORS
President, CEO and Director
For further information, please contact:
Viscount Investor Relations
Phone: 1 844 863 3622
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 contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Viscount Mining Corp. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Viscount Mining Corp. management on the date the statements are made. Except as required by law, Viscount Mining Corp. undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.