VANCOUVER, Aug. 29, 2019 /CNW/ - Rover Metals Corp.
(TSXV: ROVR) (OTCQB: ROVMF) ("Rover Metals" or the
"Company") is pleased to announce that further to its
April 10, 2019, June 26, 2019, and August
19, 2019 news releases, it continues to make progress on its
acquisition of the Toquima, Nevada, precious metals property (the
"Transaction"). Rover Metals has now closed the first
tranche of its concurrent private placement financing. The Company
has closed gross proceeds of $305,986.06 issuing 5,099,751 units (the
"Units"). Each Unit is comprised of one common share and one common
share purchase warrant (the "Warrants"). Each Warrant has a five
year life and an exercise price of $0.12 per Warrant. The Company also issued 33,600
broker warrants in connection with the closing.
Judson Culter, CEO at Rover Metals, states: "The proceeds
raised from the first closing of the financing are being used to
keep the Toquima precious metal project in good standing, including
the remaining buy-out of the underlying option agreements required
to purchase a 100% interest in the mineral rights at
Toquima."
Trading in the Company's common shares remains halted on the
TSXV. The halt is expected to continue pending the completion of
the private placement for minimum proceeds of at least $800,000.
This is an updating press release. The Company plans to issue a
further press release once it has completed the pending conditions
and provide the information prescribed by applicable policies of
the TSXV related to the Transaction.
Private Placement
Further to its April 10, 2019,
June 26, 2019, and August 19, 2019 news releases, the Company
continues to seek to raise an aggregate of up to $1.25 million through the issuance of up to
20,833,333 Units of the Company at a price of $0.06 per Unit. Each Unit will be comprised
of one common share in the capital of the Company (a "Common
Share") and one Common Share purchase Warrant. Each
Warrant will entitle the holder to acquire one additional Common
Share at an exercise price of $0.12
for a period of five (5) years from the date of issuance. The
Company has made progress on the private placement financing and
hopes to do an initial closing of the financing in the coming
weeks.
The Private Placement remains priced below the closing price of
the Company's shares on the date that the Transaction was announced
(April 10, 2019). Since announcing
the private placement on April 10,
2019, the price of gold has appreciated significantly to
over USD1,500 per ounce. The Company
would like to point out to the reader that several creditable
publications have released gold reserve estimates for the producing
miners and the trends continue to show precious metal reserves are
reaching a ten year low. The Company encourages the reader to
research such publications and consider the value proposition of
the five year warrant being offering in connection with the
Company's current financing.
The Company currently anticipates that the net proceeds of a
fully subscribed Private Placement will be allocated as follows:
65% for Toquima Project, 15% for Cabin Lake, and 20% for general
and administrative expenses. Rover Metals anticipates closing the
Private Placement in multiple closings and as funds are received.
The Company intends to finance further exploration at Cabin Lake
with a future flow-through share offering later this year.
About the Toquima Property, Nevada,
USA
The Toquima Property is a gold and silver project located
northeast of Tonopah, in central
Nevada, USA. The Property
comprises 253 contiguous, unpatented mineral claims with an area of
approximately 1,958.6 hectares (ha) (4,840 acres). Eight (8) Core
claims are under option from Shasta Gold Corp.,19 CX claims are
under option from MinQuest Inc., and 226 AR claims were staked in
2016 by Centennial. All claims are in good standing until
August 31, 2019.
The Property has been explored since 1970. Between 1970 and
2011, a total of 123 holes, both core and reverse-circulation, with
an aggregate length of 17,895 m
(58,712 ft) were drilled on the Property. Of this total,
approximately 11,500 meters in 78 holes have been drilled within
the Silver Reef Zone, the most significant of the known mineral
occurrences on the Property. Two historical resource estimates in
the context of National Instrument 43-101 exist for the Property.
The first was done in 1984 by Copper Range Exploration and
estimated 4 million short tons at grades of 2.91 opt Ag and 0.014
opt Au, (3.6 million metric tonnes grading 100 g/t Ag and 0.48 g/t
Au). This historical resource estimate was done by hand and none of
the key assumptions, parameters, and methods used to prepare this
historical resource estimate are available. The second historical
resource estimate was done in 1988 by Echo Bay Explorations Inc.
which reported "probable" and "possible" resources of 1,251,808
short tons at an uncut grade of 7.22 ounces per ton (opt) Ag and
0.026 opt Au, (1,135,621 metric tonnes grading 247.54 grams per
tonne (g/t) Ag and 0.891 g/t Au). A qualified person has not done
sufficient work to classify this historical estimate as a current
mineral resource, and Rover is not treating them as a current
mineral resource.
The Toquima Property is located on the eastern edge of the
Toquima Range, a NNE-trending range typical of the Basin-and-Range
Province. Most of the Toquima Range is underlain by volcanic rocks
of Upper Oligocene to Lower Miocene age, comprising ash-flow tuffs
ranging in composition from dacite to high-silica rhyolite.
Structure in the Toquima Range is dominated by the generally
NE-trending range-front faults on the east and west edges of the
range, smaller NE-trending faults, older NW-striking
pre-Basin-Range faults, and the circular faults and caldera margins
of the Toquima Caldera Complex.
The Toquima Range and the San Antonio Range to the south contain
the Northumberland -Tonopah
gold-silver belt that hosts at least ten gold-silver mines and
properties in addition to the Toquima Property, including
Round Mountain (Kinross), Gold Hill, Northumberland,
Manhattan, Belmont, and Tonopah. The Property exhibits similarities
with most of the other Au-Ag properties in the belt:
low-sulfidation epithermal mineralization in caldera margin and/or
range front fault zones in veins, stockworks, and breccias hosted
in hydrothermally-altered felsic volcanic rocks. Mineralization in
the Silver Reef Zone is hosted in the Late Oligocene-age Corcoran
Canyon Tuff dated at 27.7 Ma and the Trail Canyon Tuff dated at
23.6 Ma. Three types of felsic intrusions are present on the
Property, one or more of which may be related to
mineralization.
Exploration on the Property over the last 46 years has outlined
the Silver Reef Zone and discovered other mineralized zones. The
Silver Reef Ag-Au deposit, a potentially economic zone of pervasive
quartz-adularia-sulfide veining, stockwork, and disseminated
mineralization accompanied by intense quartz-sericite-pyrite
alteration, occurs in a NE-trending, northwest-dipping, zone
500 m wide and 600 m long and has been defined by surface
mapping and sampling as well as drilling.
Elsewhere on the Property, exploration identified four
additional mineralized zones: Zone M/N is located west of the
Silver Reef zone and consists of pervasive quartz-sericite
alteration and quartz-adularia veining in a NE trending zone about
800 meters long. Zone R/S is a large area of strong quartz-sericite
alteration on the western end of the Property, with anomalous rock
and soil assay values. Zone L comprises an ENE-trending Au-Sb-As
soil-rock anomaly 100 m long, over a
silicified breccia zone. In Zone F, Echo
Bay reported rock assays up to 30 g/t Ag, NW of Silver Reef.
Although Echo Bay's subsequent
soil samples did not generate an anomaly, Bullion River reported
one Au-anomalous rock sample in a rhyolite intrusion.
Technical information in this news release has been approved by
Raul Sanabria, M.Sc., P.Geo., VP of
Exploration at Rover Metals Corp. and a Qualified Person for the
purposes of National Instrument 43-101.
About Rover Metals
Rover Metals is a natural resource exploration company
specialized in North American precious metal resources, that is
currently advancing the gold potential of its existing
projects.
You can follow Rover Metals on its social media channels:
Twitter: https://twitter.com/rovermetals
LinkedIn: https://www.linkedin.com/company/rover-metals/
Facebook: https://www.facebook.com/RoverMetals/
for daily company updates and industry news.
ON BEHALF OF THE BOARD OF DIRECTORS
"Judson
Culter"
Chief Executive Officer and Director
Statement Regarding Forward-Looking Information
This news release contains statements that constitute
"forward-looking statements." Such forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause Rover's actual results, performance or achievements,
or developments in the industry to differ materially from the
anticipated results, performance or achievements expressed or
implied by such 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. There
can be no assurance that such statements will prove to be accurate.
Actual results and future events could differ materially from those
anticipated in such statements, and readers are cautioned not to
place undue reliance on these forward-looking statements. Any
factor could cause actual results to differ materially from Rover's
expectations. Rover undertakes no obligation to update these
forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS
RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE
OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER
SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON
FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO,
IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR
TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS
RELEASE.
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SOURCE Rover Metals Corp.