Genius Metals Announces $1.5M Financing and Provides an Update on the Drilling Program at Sakami
Genius Metals Inc. (CSE: GENI) (“Genius Metals” or the “Corporation”) announces a non-brokered private placement offering (the “Private Placement”) for gross proceeds of $1.5 M. The Company intends to focus on developing of the Sakami property with the proceeds raised as part of this private placement.
In regard to the Private Placement, the Corporation will issue:
- Common share units (the “Common Share Units”) at a price of $0.20 per Common Share Unit, with each such unit being comprised of one common share and one common share purchase warrant (a “Warrant”) entitling the holder to purchase one Common Share at an exercise price of $0.35 for a period of eighteen months,
- Flow-Through Share (the “Flow-Through Share”) at a price of $0.28 per Flow-Through Share; and
- Flow-Through Share Units (the “Flow-Through Share Units”) at a price of $0.30 per Flow-Through Unit, with each such unit being comprised of one “flow-through” and one-half of one Warrant entitling the holder of one whole Warrant to purchase one Common Share at an exercise price of $0.40 for a period of twelve months.
Winter 2020 Geophysical Surveys
Genius Metals has completed two geophysical surveys covering the area and extensions of the Lamarche prospect during the 2021 winter season. A high-resolution MAG survey, carried out by Vision4K on a 3 km x 1.7 km grid, revealed complex structural patterns of the volcanosedimentary rocks highlighted by two principal features. Highly erratic magnetic values are associated with a silicate/sulphide facies iron formation extending for 4 km along the faulted contact between the Opinaca and La Grande sub-provinces. An important Mag high lineament, oriented NE-ENE at the center of the grid and corresponding to the Au-Zn-Ag-Cu mineralization, diverges into several branches at the southwestern end (Figure 1). The high-res MAG survey was followed by a 42 line-km IP Resistivity survey on the same gridlines completed by TMC Geophysics. The data revealed moderate to high linear NE-SW-oriented chargeability zones with similarly oriented IP axis (Figure 2). Both the IP axis and high chargeability zones closely match the high Mag features revealed by the previous surveys and outline the mineralization found at the Lamarche prospect. A ground-based IP survey completed in 2018 covering the Goldeneye prospect also depicted chargeability anomalies.
Drilling Program on Sakami
The results of the geophysical surveys, combined with the data obtained from field exploration campaigns completed during summer and fall 2020 (prospecting, rock and channel sampling, overburden stripping and trenching), facilitated the definition of the drill targets. Genius Metals expects to have crews on the ground in the early spring to collect additional data before conducting a minimum of 2,000m exploratory diamond drilling program on the highly gold-prospective zones which include the Lamarche and Golden Eye prospects.
Figure 1 FFirst Vertical Derivative contour map form the MAG UAV High-Resolution survey completed on the Lamarche prospect grid, Sakami property.
Figure 2. Chargeability contour map and IP axis from the IP Resistivity survey completed on the Lamarche prospect grid, Sakami property.
The technical contents of this release were approved by Michel Boily, PhD, geo; a Qualified Person (QP) as defined by National Instrument 43-101.
About the Private Placement***
The Corporation will use the proceeds of the Offering of Flow-Through Units to incur qualifying expenditures on its Sakami Property, and the proceeds of the Offering of Units for exploration on its mining properties and for general working capital purposes.
In connection with this ongoing Private Placement, the Corporation could pay finder’s fees to arm’s length third parties up to 7%.
All securities issued pursuant to the Private Placement are subject to a hold period under applicable securities laws, which will expire four months plus one day from the date of their issuance.
About Genius Metals
Genius Metals is a Canadian mineral exploration company focused on the acquisition, exploration and, if warranted, development of natural resource properties of merit in Canada.
The CSE has in no way passed upon the merits of the transactions and has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release.
Genius Metals Inc.
Vice-President Corporate Development
Email: [email protected]
President and CEO
Email: g[email protected]
Office Tel.: 579-476-7000