Cedar Mountain Exploration Inc. (the “Corporation”) today announced that it will be offering on a non-brokered private placement basis (the “Offering”) up to 13,333,334 units of the Corporation (“Units”) at a price of $0.15 per Unit for gross proceeds of $2,000,000 if the Offering is fully subscribed. The proceeds will be used to fund exploration at Cedar’s Kelly Creek property and general working capital.
Each Unit will consist of one common share of the Corporation (“Common Share”) and one non-transferable share purchase warrant (“Warrant”) entitling the holder to acquire one additional Common Share at a price of $0.20 if exercised within 12 months of issuance and $0.30 if exercised after 12 months of issuance. The Warrants will expire on the earlier of: (a) 30 days following the issuance of a news release by the Corporation that the trading price of the Shares on the TSX Venture Exchange is at or greater than $0.40 per Common Share for 10 consecutive trading days; and (b) 24 months from the date of issuance. The Units will be offered to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. Insiders of the Corporation may participate in the Offering.
The Offering is subject to acceptance by the TSX Venture Exchange (“Exchange”) and if permitted under applicable securities laws and by the Exchange, the Corporation will pay a finder’s fee to registered dealers equal to 10% of the gross proceeds realized from sales of Units made to purchasers referred to the Corporation by such dealer (which may be paid in either cash or Common Shares at a deemed price of $0.15 per Common Share, at the sole discretion of the Corporation) and issue to such dealer non-transferable share purchase warrants entitling the dealer to acquire that number of Common Shares equivalent to 10% of the Units sold to purchasers referred to the Corporation by such dealer on terms identical to the Warrants of the Units.
The Kelly Creek Property
The Kelly Creek Project is a drill-permitted early-stage exploration property of 32,640 acres (13,209 hectares) with historic results indicating the presence of a sediment-hosted gold deposit located 145 km north of Nome, Alaska on the Seward Peninsula within the prolific Nome mining district, which has historically recorded placer gold production of 5 million ounces. Infrastructure in the region is favorable and a winter road runs through the property’s eastern boundary.
Kelly Creek is a gold exploration project with numerous open-ended, multi-element, coincident gold (Au), arsenic (As), antimony (Sb) soil anomalies which have been tested with a positive, albeit limited drilling program. Geological and geochemical results to date are indicative of a sediment-hosted gold deposit. A well known type of sediment-hosted gold deposit is the Carlin Trend, Nevada.
Gold mineralization at Kelly Creek is hosted in a metamorphosed Devonian-Silurian carbonate-shale platform-shelf sequence and is associated with the intersection of specific stratigraphic horizons and secondary fault splays. This prospective stratigraphy is exposed along a 15 km x 5 km corridor bounded by regional faults. The majority of the corridor is only sparsely investigated by geochemical surveys and the additional claims were staked to protect the strike extent of the prospective stratigraphy.
The gold mineralization at Kelly Creek was discovered by Anaconda Copper Mining Co. (Anaconda) as part of a regional stream sampling project focused on tin exploration in the early 1980’s, when the significance of sediment-hosted gold deposits was not well known. Following up a positive gold stream anomaly with a small, but encouraging soil survey, Anaconda drilled two holes into the target horizon returning results of 1.07g/t over 23.5m and 0.83g/t over 32m respectively. Anaconda pulled out of Alaska for corporate reasons a year later in 1985.
Cedar’s disclosure of a technical or scientific nature in this press release has been reviewed and approved by Cedar’s Vice President of Exploration, Mr. David Clarke M.Sc., P.Geol. who serves as a Qualified Person under the definition of National Instrument 43-101. The Kelly Creek property represents an early stage exploration property and does not contain any mineral resources as defined by National Instrument 43-101.
Cedar is a member of the Discovery Group of Companies: www.discoveryexp.com
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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 release.