2012-12-31 22:08:54 -
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/31/12 -- Homestake Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6IH) has closed its previously announced non-brokered private placement of flow-through Units by issuing 4,852,500 flow-through units for gross proceeds of $970,500 and the first tranche of the non flow-through private placement by issuing 4,179,001 non flow-through Units for gross proceeds of $626,850. Homestake has raised an aggregate $1,597,350 in this financing.
Each flow-through Unit is priced at $0.20. Each Unit is comprised of one flow-through share and one half share purchase warrant, each whole warrant entitling the purchase of one common share at a price of $0.25 per share for 24 months. The proceeds will be utilized for Canadian exploration expenses, within the meaning of the Income Tax Act (Canada), related to the exploration during 2012-2013 of the company's Kinskuch project in British Columbia, Canada with expense renunciations on December 31, 2012.
Each non flow-through Unit is priced at $0.15. Each Unit is comprised of one common share and one share purchase warrant, each whole warrant entitling the purchase of one common share at a price of $0.20 per share for 24 months.
The Company may pay finders' fees in cash and issue Finder's Warrants each having the same terms and conditions as the Warrants. The private placements and payment of finders' fees are subject to regulatory approval.
Homestake is a mineral resource exploration and development company that owns direct and indirect interests in prospective mineral properties.
Homestake Ridge Project
Homestake owns a 100 percent interest in the Homestake Ridge project, located in the Kitsault Mineral District in northwestern British Columbia. The project is being advanced as a potential high-grade underground mining operation. At a 3.0g/t AuEq cut-off and based on drilling completed through 2010, the project contains an estimated NI43-101 compliant Indicated Resource of 191,000oz gold and 1,350,000 oz silver (215,500oz AuEq) plus an Inferred Resource of 530,000 oz gold and 13,470,000oz silver (775,900oz AuEq)(1) at the Main Homestake and Homestake Silver deposits. A third deposit was discovered at South Reef late in 2011 and was expanded with drilling in 2012, but mineralization there has not yet been included in resource estimates. To date, 251 holes were drilled for a total of 70,533 metres, and multiple exploration targets remain to be tested on the large 2585-hectare property. Agnico-Eagle Mines Limited has assumed project management under an option agreement to fund exploration and development costs of $25.3 million over a 5-year period to earn a 65% interest in the property and has spent $1.8 million in funding operations in 2012 together with a purchase of 20 million shares of Homestake at a price of $.35 per share. Exploration expenditures under the option agreement for 2013 are $3.5 million.
Homestake holds an option to acquire a 100% interest in the 623-square-kilometre Kinskuch project, located adjacent to, and to the southeast of, the Homestake Ridge project. Diamond drilling along the Illiance trend on the Kinskuch property during 2011 was successful in intersecting high-grade silver/lead/zinc VMS mineralization in three of four holes. Surface soil and rock-chip sampling along the trend in 2012 extended mineralization to a 4.5 kilometre strike-length; Homestake will be aggressively exploring this trend in 2013.
Homestake owns a 10.19 percent equity interest in Bravada Gold Corporation (TSX VENTURE:BVA). Bravada is exploring and developing numerous gold/silver projects in several of Nevada's prolific gold belts, including the past-producing Wind Mountain project in the Walker Lane Gold belt and the past-producing Quito project in the Austin Gold belt. At the advance-stage Wind Mountain project, an independent engineering firm has calculated a 43-101-compliant resource estimate and demonstrated a positive PEA for an open-pit/heap-leach operation. Bravada is currently conducting additional exploration at Wind Mountain under a funding and option agreement with Argonaut Gold Corporation.
Robert Macdonald (P.Geo) is the Qualified Person as defined by National Instrument 43-101 for the Homestake Ridge project and has reviewed and approved the technical contents of this release.
ON BEHALF OF THE BOARD
Joseph A. Kizis, Jr.
President and Director
1. The current estimate was prepared by Roscoe Postle Associates Inc.
(RPA). Mineral Resources on the Main Homestake deposit were estimated
previously in 2010 using a block model constrained by 3D wireframes of
the mineralized zones. Mineral Resources on the Homestake Silver deposit
were estimated in 2011 using a block model constrained by pierce points
projected to 2D surfaces. The Main Homestake block model comprised an
array of blocks measuring 5 m x 5 m x 5 m, with grades for Au, Ag, and
Cu interpolated using ID3 weighting. The Homestake Silver block model
comprised an array of blocks measuring 10m x 10m. At a 3.0g/t AuEq. cut-
off, the models identified an indicated resource of 888,000 tonnes
averaging 6.7g/t Au, 47.2g/t Ag and 0.15% Cu and a cumulative inferred
resource of 4,060,000 tonnes averaging 4.3g/t Au, 158g/t Ag.
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.
Homestake Resource Corporation
1-888-456-1112 or 604-641-2773 firstname.lastname@example.org