Vancouver, British Columbia - TheNewswire -September 23, 2019 - Gitennes Exploration Inc. ("Gitennes" or the "Company") - (TSXV:GIT) (OTC:GILXF) announces that it has raised gross proceeds of $556,000 under terms of a non-brokered private placement announced July 29.
The majority of the net proceeds will be used to primarily finance a Phase III diamond drill programme on the Snowbird High Grade Gold Project. It is anticipated that crews will mobilized to the Project over the next few weeks. The Company issued a total of 15,896,000 units at 3.5 cents per unit consisting of 5.29 million non-flow through units for gross proceeds of $185,000 and 10.6 million flow-through units for gross proceeds of $371,000.
The non-flow through units and the flow-through units were both issued at 3.5 cents and all units consist of one common share and one full common share purchase warrant. Each full non-flow through warrant entitles the holder to purchase one common share of Gitennes at five cents for three years. Each full flow-through warrant entitles the holder to purchase one common share of Gitennes at five cents in year one and six cents in year two.
Gross proceeds from the financing will mainly be used for exploration on the Company's two properties located in northern, BC including 2,000 metres of diamond drilling on the Snowbird High Grade Gold Property, working capital, marketing, offering expenses and finder's fees.
Shares issued under the private placement are subject to a four month hold. Finder's Fees of $44,439 and 1,119,680 warrants were paid on the private placement. The warrants are exercisable at five cents for a period of three years. The private placement and the payment of any commissions and fees are subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
About the Snowbird High Grade Gold Project
The Company has completed two diamond drill programmes on its Snowbird High Grade Gold Project located near Fort St. James, British Columbia. The planned Phase III drilling programme will focus on the Main Zone and will test the continuity of the mineralization at depth with drilling significantly deeper than all previous drilling with planned hole lengths averaging up to approximately 200 metres. The Snowbird Project's logistics allows for drilling year-round and cost efficient drilling which over the last two diamond drilling programmes averaged approximately C$175/metre all-in.
Main Zone Highlights - Snowbird Gold Project
The Main Zone is the focus for the planned Phase III drilling. The zone has consistently delivered high grade results either through historical adit and trench sampling; diamond drilling in the early and late-1980's or by Gitennes' two diamond drilling programmes (see tables below).
Table 1 - Historical Adit and Trench Sampling
(1)Readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon.
Table 2 - Select Historical Drill Results and Gitennes Drill Results:
(1)Except for holes SB17-04 and SB18-06 readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon.
Based on Gitennes' work and a review of historical information, high-grade gold occurs within and adjacent to the 25 to 150 metre wide silica-carbonate altered ultramafic unit in areas of high deformation (faulting/shearing) and is associated with key pathfinder elements arsenic and antimony. Gold in quartz veins is predominantly hosted within 10 metres of the footwall contact between the overlying mudstone altered ultramafic.
Gitennes' review of historic drilling in combination with contemporary drilling from the Phase I and II programme suggests that the down dip extension of the Main Zone mineralization may steepen at depth. Phase III drilling will test the Main Zone at depth as almost all historical drilling has been to an average vertical depth of only about 75 metres.
About Gitennes Exploration Inc.
Gitennes is in the business of exploring for and advancing gold properties. The Company currently has two high grade gold exploration properties, Snowbird and Maroon, both in British Columbia and a 1% Net Smelter Returns royalty on the 18 million ounce Urumalqui Silver Project in Peru.
The scientific and technical information contained in this news release has been reviewed and approved by J. Rensby (P.Geo.), technical advisor to the Company, who is a "qualified person" within the meaning of National Instrument 43-101.
Gitennes Exploration Inc.
For further information, please contact: Ken Booth
Neither the 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 news release.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain statements that constitute "forward-looking information" within the meaning of applicable Canadian securities laws concerning the business, operations and financial performance and condition of the Company. All statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations and orientations regarding the future. Often, but not always, forward-looking statements can be identified by words such as "pro forma", "plans", "expects", "may", "should", "budget", "schedules", estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Such forward-looking statements include, among others, statements as to the anticipated business plans and timing of future activities of the Company, including the exercise of the option to acquire the Snowbird Project and to conduct exploration activities thereon. Actual results could differ from those projected in any forward-looking statements due to numerous factors including risks and uncertainties relating to exploration and development and actual results of exploration activities; the ability of the Company to obtain additional financing; delays in obtaining governmental and regulatory approvals (including the TSX Venture Exchange), permits or financing; the need to comply with environmental and governmental regulations; potential defects in title to the Company's properties; fluctuations in the prices of commodities and precious metals; operating hazards and risks; environmental issues and liabilities; and competition and other risks and uncertainties of the mining industry. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that those beliefs, plans, expectations or intentions will prove to be accurate. Readers should consider all of the information set forth herein and should review the Company's periodic reports filed from time-to-time with Canadian securities regulators. These reports and the Company's filings are available at www.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release and, except as otherwise required by law, the Company undertakes no obligation to update the forward-looking statements contained herein, or to update the reasons why actual results could differ from those projected in these forward-looking statements.