Monthly Archives: April 2016

Viscount Announces $2 Million Private Placement to Advance Silver Cliff

Viscount Mining Corp

PRESS RELEASE                                                                                             April 25, 2016

Viscount Announces $2 Million Private Placement to Advance Silver Cliff

VANCOUVER, Canada –- Viscount Mining Corp. (TSX-V: VML) (OTCQB: VLMGF) (“Viscount” or “the Company”) is pleased to announce a Brokered Private Placement (the “Private Placement”) and has engaged Gravitas Securities Inc. (“GRAVITAS” or the “Agent”) to complete a best efforts private placement to fund an assessment of its Silver Cliff property in Colorado.

The private placement is for 4,000,000 units (each “Unit”) at a purchase price of $0.50 per Unit, for aggregate gross proceeds to the Company of up to $2,000,000. Each Unit consists of one (1) common share (“Common Share”) of the Company and one (1) non-transferable share purchase warrant (“Warrant”).

Each Warrant will entitle the holder to acquire one (1) Common Share at an exercise price of $0.70 for a period of 24 months from the closing date of the Private Placement. In the event that the Company’s common shares trade at a closing price on the Exchange of greater than $0.85 per share for a period of 30 consecutive trading days at any time after the closing date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date hereafter referred to as the (“Eligible Acceleration Date”) on which such notice is given by the Company. The private placement is subject to TSX Venture Exchange approval. There will be a hold period of four months and one day on all securities issued under this financing.

Gravitas Securities Inc. (“GRAVITAS”) has agreed to act as agent for and on behalf of Viscount with the proposed best efforts private placement offering, and is entitled to an Agency Fee of 7% of the cash received from the sale of the Offered Securities, and Broker Warrants equal to 7% of the aggregate number of Common Shares issued, on the same terms as the Warrants acquired by subscribers to the offering.

The Company intends to use the net proceeds of the Private Placement for the advancement of the Company’s 100%-owned Silver Cliff property in Colorado. Viscount Mining Corp plans to substantiate the mineral inventories through surface sampling, and core drilling followed by an evaluation of deposit(s) potential through geophysical surveys, offset drilling and detailed geological mapping. Once this is completed a report will be generated to substantiate the value of the Silver Cliff Property.

Kaare Foy, Viscount Chairman stated: “Following the signing of an earn-in agreement with Sumitomo Corporation of Japan for our Cherry Creek Nevada property in 2015, and the continued work program, the Company feels we are in a suitable position to start advancing the Silver Cliff property in Colorado with this financing.”

 About Silver Cliff Property

 The Silver Cliff property lies within the historic Hardscrabble Silver District, and consists of 96 lode claims where high grade silver, gold and base metal production came from numerous mines during the period 1878 to 1894. 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 for the purpose of defining mineral inventories. The major explorers were Freeport, Hecla, Homestake, Moly Corp, Coca Mines and Tenneco Minerals.

Silver Cliff is thought to overlie a large caldera and porphyry system which increases the prospect’s potential to host a number of deposits from both precious metals to base metals. This has been demonstrated in the mineralogy and grade historically extracted from numerous underground mining operations dating back to the late 1800s and early 1900s.

 Past drilling at Silver Cliff was designed to test only the flat-lying shallow mineralized bodies with vertical holes but not the High-angle mineralized structures which are the ultimate controls for the emplacement of these mineralized bodies. This indicates that follow-up drill programs need to include angle holes which will cut these mineralized structures, potentially upgrading the deposits.

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. Known historical silver grades range from below detection to a high of 2,125 g/t (68 o/t) Ag over 13.4 metres. Known historical gold grades range from below detection to a high of 9.06 g/t (0.29 o/t) Au over 1.2 metres. Plans were halted due to the restructuring of Tenneco after it was sold.

In the first phase, the Company has an exploration target of 40 to 50 million ounces of silver. However, potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Qualified Persons

Mark J. Abrams, M.Sc., P.G., R.G., C.P.G., an independent consulting geologist who is a “Qualified Person” reviewed, prepared and supervised the preparation or approval of the scientific and technical content in the news release as 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 an exploration company with a portfolio of gold and silver properties in the Western United States, including Cherry Creek in Nevada and Silver Cliff in Colorado. Cherry Creek is comprised of more than 10,000 acres, all 100% owned, and includes more than 20 past producing mines. Viscount has entered into an exploration earn-in agreement with Sumitomo Corporation covering the Cherry Creek property. Sumitomo can earn in up to a 75% interest in the property by producing a feasibility study and by spending in addition a minimum of US$10,000,000 in exploration and development expenses by the eighth anniversary of the earn-in agreement. Silver Cliff in Colorado is comprised of 96 lode claims, covering much of the historical past-producing mineral districts of Silver Cliff and Rosita Hills.

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

“Jim MacKenzie”

President, CEO and Director

For further information, please contact:
Viscount Investor Relations
Phone: 604-960-0535
Email: info@viscountmining.com

 

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.

Forward-Looking Statements

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.

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Viscount Announces 2016 Work Program at Cherry Creek, Nevada

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  • Summit recognizes that Viscount’s Flint Canyon area exhibits alteration and mineralization characteristic of Carlin-type gold deposits
  • Drilling budgeted for 32 holes at 24,000 feet or 7320 m

VANCOUVER, Canada –- Viscount Mining Corp. (TSX-V: VML) (OTCQB: VLMGF) (“Viscount” or “the Company”), is pleased to announce the 2016 work program which will commence shortly on the Cherry Creek Property, Nevada.  The program will be conducted by Summit Mining Exploration, Inc. (“Summit”), a wholly owned subsidiary of Sumitomo Corporation.  The Cherry Creek Mining Property is located in White Pine County approximately 56 miles or 90km north of Ely, NV.  The district has a long history of gold, silver, lead, zinc and tungsten production from high-grade vein and replacement deposits.

This program follows up on the successful 2015 work program on Flint Canyon about which Summit stated, “Flint Canyon is a very high priority target area for 2016” as was indicated in the Viscount new release from October 29, 2015.

Kaare Foy, Viscount Chairman stated: “We have a great exploration partner with Sumitomo Corporation and are encouraged with the 2015 work program results.  In 2016 we will be working in two very prolific gold and silver jurisdictions and expect it to be a very exciting year for Viscount shareholders.”

Flint Canyon 2016 Work Program

The Flint Canyon area contains highly dissected fault blocks of the Dunderberg Shale and is generally recessive with the underlying Marjum Limestone and overlying Notch Peak Limestone.  The Dunderberg shale appears to be moderately altered throughout its distribution at Cherry Creek, and at Flint Canyon it experienced widespread and significant alteration by hydrothermal fluids.  The Flint Canyon jasperoid and carbonate rock chip samples from 2015 work program are highly anomalous in gold mineralization.

At Flint Canyon, the Pogonip Formation overlies the Notch Peak and both units are important host rocks for Carlin-type gold mineralization in east‐central Nevada.  Jasperoid occurrences in Nevada are significant in context to Carlin-type gold deposits and mineralized jasperoid outcrops are common throughout the Flint Canyon area.  They occur principally along the base of the Dunderberg Shale but other outcrops are found along Pogonip‐Notch Peak contact.  Many major gold discoveries have been made based on the presence of outcropping, weakly mineralized jasperoid hosted in and along bedding contacts of carbonate rocks.  At Flint Canyon, jasperoid is found in the same carbonate rocks that are prolific host rocks at Newmont Mining’s nearby Long Canyon gold deposit.

The program is as follows:

  • Continue soil sampling program on the standard 75 m by 75 m grid.  Minimum 1,200 samples to cover Flint Canyon and western flank of the mountain range, as well as much of the remainder of the property.
  • Continuation of geologic mapping and chip sampling.  Remap and sample Flint Canyon area in greater detail. Extend mapping up and outward into areas not covered in 2015 program.
  • Submit plan for permitting of drilling at Flint Canyon.
  • The drilling will target an area measuring 1 km by 2 km of anomalous gold associated with jasperoid outcrops occurring in carbonate rocks and with nearby Eocene intrusive dikes.

Exchequer/New Century Mines and Star/Grey Eagle Mines 2016 Work Program

Recent mapping and sampling by the project geologists have verified the anomalous gold in this area, from the Star Mine up to and past the Grey Eagle vein which is subparallel to the Exchequer vein.  Since the Star structure strikes northwest, it may extend to the Exchequer vein. Therefore, the potential target area extends from the Star Mine to the Exchequer structure. The drill programs will test the possibility of a major deep seated gold-silver and base metals deposit in this general mineralized area. This could become a significant new area with economic grade mineralization. With the possibility of connecting the three past producing mines underground, could mean a significant cost saving in mining if an economic grade deposit is discovered.

The program is as follows:

  • Satellite imagery – high resolution satellite imaging of the entire property and generation of rectified 1m topography to be loaded to Vulcan and ArcGIS programs.
  • Detailed mapping and interpretation of faulting and structures and develop a structural & lithological reconstruction model of the Cherry Creek range.
  • Transfer mapping and sampling data from ArcGIS to the Vulcan program to allow for dimensional geological interpretation and modeling.
  • Submit drilling plan for permitting at Star/Gray Eagle Mines, and Exchequer/New Century Mines.
  • Property-wide drilling budgeted for 32 holes at 24,000 feet (7320 m).

Qualified Persons

The scientific and technical information contained in this news release has been reviewed by Mark J. Abrams, M.Sc., P.G., R.G., C.P.G., 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 an exploration company with a portfolio of gold and silver properties in the Western United States, including Cherry Creek in Nevada and Silver Cliff in Colorado.  Cherry Creek is comprised of more than 10,000 acres, all 100% owned, and includes more than 20 past producing mines.  Viscount has entered into an exploration earn-in agreement with Sumitomo Corporation covering the Cherry Creek property.  Sumitomo can earn in up to a 75% interest in the property by producing a feasibility study and by spending in addition a minimum of US$10,000,000 in exploration and development expenses by the eighth anniversary of the earn-in agreement.   Silver Cliff in Colorado is comprised of 96 lode claims, covering much of the historical past-producing mineral districts of Silver Cliff and Rosita Hills.

For additional information regarding the above noted property and other corporate information, please visit the Company’s website at www.viscountmining.com

About Sumitomo Corporation

Sumitomo Corporation is one of the largest integrated trading and investment companies in Japan. Sumitomo Corporation, a Fortune 500 company, conducts commodity transactions in all industries utilizing worldwide networks, provides related customers with various financing, serves as an organizer and a coordinator for various projects, and invests in businesses from the information industry to the retailing industry.  Summit Mining Exploration, Inc. is a wholly-owned subsidiary of Sumitomo Corporation and is headquartered in Colorado, USA. For more information about Sumitomo Corporation, visit www.sumitomocorp.co.jp

ON BEHALF OF THE BOARD OF DIRECTORS

“Jim MacKenzie”

President, CEO and Director

For further information, please contact:

Viscount Investor Relations
Phone: 604-960-0535
Email: info@viscountmining.com

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.

Forward-Looking Statements

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.

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