Nighthawk completes C$2.5 million non-brokered flow-through private placement and increases its drilling program within the Indin Lake Gold Property
11 July 2018
Nighthawk Gold Corp. is pleased to announce that it has completed a non-brokered private placement of 5,000,000 common shares of the company that qualify as "flow-through shares" ("FT Shares"), within the meaning of the Income Tax Act, at a price of $0.50 per FT Share for aggregate gross proceeds of $2,500,000. The gross proceeds from the Offering will be used to fund Canadian exploration expenditures which will qualify as flow-through mining expenditures within the meaning of the Tax Act and will be incurred on the company's Indin Lake Gold Property in the Northwest Territories.
The company originally outlined an exploration budget of $11 million (including a $9.9 million "flow-through" commitment to be spent by the end of 2018) which would allow for approximately 25,000 metres of drilling within the company's Indin Lake Gold Property. The proceeds from the Offering will allow an increase in metres from the planned 25,000 metre program to upwards of 30,000 metres of drilling, as well as an expanded prospecting program.
The 2018 drilling program commenced in March with three drills in operation for the duration of the drill season. Two drills are focused on the Colomac Gold Project ("Colomac"), aimed at exploring for additional high-grade zones and infill drilling within the current mineral resource in preparation for a future mineral resource update. The third drill will test some of the more prospective regional targets within the Company's district scale land package including: the Leta Arm Project (targeting the main deposits and showings along this 10-kilometre long mineralized shear zone); the Treasure Island prospect, following up on the positive drill results from its 2011 campaign; the high-grade Damoti Lake Gold Deposit where drilling will explore the host fold structure along strike and to depth below the current mineralization, with the objective to deliver a maiden mineral resource estimate in early 2019. The Company is also aggressively advancing several of its recent new discoveries to possibly drill later in the program, including the Nice Lake Sill (located 2 kilometres east of Colomac), the Andy Lake Showing (17 kilometres south-southeast of Colomac), and the Swamp Showing (7 kilometres northwest of Colomac). These new discoveries have never been drilled.