SAMUEL ANNOUNCES OPTION AGREEMENT AND A $200,000 PRIVATE PLACEMENT
International Samuel Exploration Corp. (ISS.V) has entered into an option agreement to acquire a 100-per-cent interest in a former Noranda Exploration project referred to as the Lucifer property (comprising 4,588.41 hectares) located in northwestern British Columbia's Golden Triangle. The property is located in the northeastern part of the Golden Triangle, along the same geological trend as Evrim Resources' Ball Creek property, Colorado Resources' Hank and North Rok properties, Skeena Resources' GJ property, GT Gold Corp.'s Tatogga property, and Imperial Metals' Red Chris mine.
According to the BC Ministry of Mines database, previous exploration work by Noranda (1990-1991) identified a 400 meter wide, 1.2 kilometer long, north northeast trending zone of hydrothermal alteration associated with strongly elevated gold concentrations and base metal soil geochemical anomalies (Aris Report No.21091). BC Ministry of Mines Minfile database documents two shallow drill holes completed in 1991 which reportedly intersected 15.1 g/t gold over 1.36 meters and 0.7 g/t gold over 5.70 meters. In addition to the mapped alteration zone and strong soil geochemical anomalies Noranda identified multiple strong "gold in stream" anomalies in the central part of the property which have not been followed up. It is important to note that the Company has not verified the historical exploration results reported for the former Lucifer Property as documented by the BC Ministry of Mines.
Since 2005 infrastructure throughout the Golden Triangle has steadily improved and several of the known porphyry copper gold prospects including Red Chris, Galore Creek, and the KSM Project (Seabridge Resources) have either made production decisions or reported positive feasibility studies. The recent production decision for the Brucejack Gold Deposit (Pretium Resources) combined with the commencement of production at Red Chris, the recent discovery announced by GT Gold Corp. of significant gold mineralization associated with "gold in soil" anomalies at the Saddle Zone and a resurgence of exploration activity have re-established the Golden Triangle as one of BC's most important mining districts.
Technical disclosure in this news release has been reviewed and approved by Carl Von Einsiedel, a Qualified Person as defined by National Instrument 43-101.
Pursuant to the terms of the option agreement, in order to exercise the option, ISS will be required to issue 3,000,000 common shares to the vendors (2,000,000 common shares on TSXV approval and an additional 1,000,000 common shares by October 31, 2018). In addition, on exercise, ISS will grant a 2% NSR of which 1.5% can be purchased by ISS at $500,000 per 0.5%. The Company will pay a finder's fee in relation to this transaction, which finder's fee will be in compliance with applicable securities laws and exchange policies. This transaction is subject to TSX Venture Exchange ("TSXV") approval.
The Company also announces a non-brokered private placement offering of up to 4,000,000 units at a price of $0.05 per unit to raise gross proceeds of up to $200,000. Each unit will consist of one common share of the Company and one-half of one transferable common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share of the Company for a 12 month exercise period at a price of $0.15 per share. This financing is subject to TSXV approval.
The proceeds of the private placement will be used for the purpose of carrying out the exploration programs on the property and for general working capital.