March 03, 2014
Highway 50 Announces Completion of Private Placement and Grant of Option on Golden Brew
Vancouver, British Columbia
Highway 50 Gold Corp. (TSX.V -- HWY) March 3, 2014
Highway 50 Gold Corp. ("Highway 50" or the "Company") is pleased to announce that the Company has completed the previously announced non-brokered private placement raising gross proceeds of $2,600,000 (the "Offering") through the sale of 7,027,025 units (each a "Unit") at a purchase price of $0.37 per Unit. Each Unit consists of one common share of the Company and one non-transferable common share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase one additional common share of the Company (a "Warrant Share") at an exercise price of $0.60 per Warrant Share until February 28, 2015.
In connection with the Offering the Company engaged finders (the "Finders") at arms' length to the Company to introduce purchasers to the Company. In consideration for the services provided by the Finders to the Company, the Company paid cash finder's fee in the aggregate of $38,332 and issued an aggregate of 24,500 Units to Finders. Each Unit having the same terms as the Units issued in the Private Placement. In addition, the Company also issued to the Finders finder's options (each, a "Finder's Option") exercisable until February 28, 2015 entitling them to acquire up to 128,100 common shares of the Company (each, a "Finder's Share") at a purchase price of $0.45 per Finder's Share.
The net proceeds of the Offering will be used towards the Porter Canyon project and for general working capital purposes.
The securities issued pursuant to the Offering, including the Finder's Units and Finder's Options, are subject to a four month hold period which expires on July 1, 2014.
Further to the Company's press release dated December 20, 2013 in which it announced that it had entered into a Letter of Intent with Regulus Resources Inc. ("Regulus") with respect to a proposed grant of an option (the "Option") to Regulus to acquire a 50% option in the Company's Golden Brew project located in Nevada, the Company has entered into a definitive Option Agreement with Regulus dated February 19, 2014 with respect to the Option. In order to exercise the Option, Regulus must, among other things, spend US$5,000,000 on exploration expenditures on the project over 5 years, and assume the underlying third party lease payments and claim holding costs. Exploration expenditures of US$500,000 in the first year is a firm commitment. Upon earn-in the parties will form a joint venture on a 50/50 basis. In addition, as an integral part of the grant of the Option, Regulus purchased an aggregate of 2,000,000 Units in the Offering for proceeds of $740,000 under the Offering.
About Golden Brew
Golden Brew comprises 153 claims which cover a large Carlin-style gold-arsenic-antimony system located at the base of the Toiyabe Range, 25 km south of Austin, Nevada. To date, mineralization consists of a zone of gold bearing jasperoid measuring 800 metres long and up to 70 metres wide, hosted in thin-bedded platey Cambrian-aged silty carbonates. The jasperoid is anomalous in Carlin-type pathfinder elements of arsenic, antimony and mercury, with gold values ranging from 0.1 g/t Au to 4 g/t Au. West of the range, CSMAT and gravity surveys indicated an uplifted horst block under pediment cover. Follow-up drilling confirmed a 300 metre uplift and intersected Carlin- type mineralization in one hole (GB-3). Assays returned up to 28 ppb gold, 290 ppm arsenic and 30 ppm antimony in a 50 metre thick zone within thin-bedded silty carbonates. The aforementioned levels are higher then those peripheral to the auriferous jasperoid 2,500 metres to the east, and confirm the extension of the mineralized system in the horst block. This horst block is coincident with the projected intersection of a set of crustal scale structures and a strong magnetic low. The magnetic low may reflect magnetic destruction to alteration related to the mineralized system. Initial drill targets will focus on the northeastern and southeastern structural corners of the horst block, both areas of gravity lows within the gravity high (horst block). Gravity lows in this setting may be a function of alteration (decalcification) with related Carlin-type mineralization. The Company is currently in the process of permitting ten new drill sites at the project.
The scientific and technical information contain in this news release has been reviewed by Gordon P. Leask, P.Eng., President and Chief Executive Officer of the Company, and a Qualified Person, as defined under National Instrument 43-101 - Standards of Disclosure of Mineral Projects.
For additional information:
Gordon P. Leask, P.Eng. President and CEO Highway 50 Gold Corp. Tel: 604.681.4462
Neither the TSX Venture Exchange, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. Investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, the expected use of proceeds from the Offering, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.