NOT FOR DISTRIBUTION TO THE UNITED STATES OR FOR DISSEMINATION IN THE UNITED STATES
Vancouver, British Columbia, April 25, 2018 – Midnight Sun Mining Corp. (the “Company” or “Midnight Sun“) (TSX-V: MMA) has commenced its exploration program for the 2018 field season. The Company has designed a comprehensive exploration program to further advance its Zambian copper properties.
2018 Exploration Program
The Company has mobilized the first diamond drill rig to the Solwezi Group of Licences (“Solwezi Licences”) and will start operations in the next two weeks. The second diamond drill rig is currently at the Zambian border and should be at site in two weeks’ time, commencing work shortly thereafter.
A team of seven geologists and data management personnel are on the ground and have completed the re-logging of all historic drill core to facilitate a strong comprehension of the geology and controls on mineralisation at the Solwezi targets. This knowledge will support optimization of drill holes in the upcoming program. Additionally, the Company has introduced robust QA/QC procedures for all work programs.
A Natural Sourced Audio Magneto Tellurics (“NSAMT”) ground geophysics programme over the north-west area of the Mitu copper-cobalt target has been completed by Symons Geophysics, with a total of 35 line kilometres surveyed. This survey was conducted on 500 metre spaced lines with the goal of providing a more detailed view of the position and distribution of the favourable black shale units which host the identified copper-cobalt mineralization. A final interpretation and model is expected in approximately three weeks.
The Company has also contracted GeoTech Ltd. to fly a 200 metre spaced airborne geophysics survey, including Heli-borne Versatile Time Domain Electromagnetics (“VTEM”), magnetics and radiometrics over the entire property, with 100 metre spaced infill over the three main targets of Mitu, 22 Zone and Dumbwa (north and central). The survey should commence in the third week of May, subject to weather conditions at site.
Midnight Sun will utilize the new data generated from these VTEM and NSAMT surveys to conduct a comparative interpretation using the exploration dataset, including the drill data from its 2016 and 2017 drilling campaign, early 2018 drill results, and soil geochemistry. This will help determine primary and secondary drill targets on the three main mineralized areas. In particular, the survey can identify the position of additional black shale units along the Mitu corridor and at depth below the limestones at 22 Zone, where the Company sees potential for mineralization analogous to that found at the neighbouring Kansanshi Mine (First Quantum Minerals).
The Company will also mobilise an air core drill rig to Mitu in late May to evaluate the intensity of copper-cobalt mineralisation in the conductor rocks. This will guide the diamond drill holes to focus on testing the most significant and sizeable mineralised conductors and leverage the overall exploration program towards the discovery of significant mineral resources.
The Company’s President and Chief Executive Officer, Brett Richards stated: “We have made tremendous strides in preparing Midnight Sun with the people, processes, site infrastructure and logistics needed to maximize the comprehensive drilling campaign set to start this forthcoming field season and continue (up to) the next three years, if required. All of the planning and infrastructure built at site has been done so with a sustainable approach to our future work requirements, and I look forward to first results in June 2018.”
The Company announces a non-brokered private placement of up to 3,750,000 units (the “Units”) at a price of $0.32 per Unit for gross proceeds of $1,200,000 (the “Offering”). Each Unit will consist of one (1) common share (“Common Share”) in the capital of the Company and one half of one (1) Common Share purchase warrant (a “Warrant”). Each full Warrant will entitle the holder to purchase one Common Share of the Company for a period of twelve months from the closing of the Offering at an exercise price of $0.48. The net proceeds from the Offering will be used by the Company to fund exploration on the Solwezi Licences as well as general working capital. The Company intends to close the Offering as soon as practicable.
Brett Richards, Chief Executive Officer of the Company, has again committed to participate in the private placement as the lead order, personally subscribing for $200,000 worth of units.
The Offering, including the future issuance of the Common Shares and Warrants, is subject to the final approval of the TSX Venture Exchange. All securities issued will be subject to a hold period of four months and one day pursuant to applicable securities laws.
Please refer to the Company’s previous New Releases as well as the Company presentation on its website at: www.midnightsunmining.com.
ABOUT MIDNIGHT SUN MINING
Midnight Sun Mining Corp. is a mineral exploration and development company that trades on the TSX Venture Exchange under the symbol MMA.
Midnight Sun has earned a 60% interest in the Solwezi Licences, and has since agreed to a term sheet and letter of intent to purchase the remaining 40%. The Solwezi Licences are adjacent to First Quantum’s Kansanshi Mine; Africa’s largest copper mining complex, on the prolific Zambia-Congo Copper Belt.
The Solwezi Licences are comprised of two (2) individual prospecting licences totalling 506 km2, located in the North-Western Province of Zambia approximately 450 km from the capital city, Lusaka.
Led by experienced directors and talented management, Midnight Sun aims to further explore the impressive mineralization and anomalies that have recently been discovered on the Solwezi Permits.
ON BEHALF OF THE BOARD OF MIDNIGHT SUN MINING CORP.
Brett A. Richards – President and Chief Executive Officer
For Further Information Contact:
|Brett A. Richards
President and Chief Executive Officer
Tel: +1 905 449 1500
Tel: +1 604 351 8850
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 NEW RELEASE.
These securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
This news release includes certain statements that may be deemed as “forward-looking statements”. All statements in this release, other than statements of historical facts, the expected completion of any Offering, and the expected use of proceeds are forward-looking statements. Although the Company 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 or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include: changes in market conditions, unsuccessful exploration results, changes in the price of commodities (particularly copper, cobalt, gold and nickel), unanticipated changes in key management personnel and general social, economic or geo-political conditions. Mining exploration and development is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward–looking statement that may be from time to time by the Company or on its behalf, except in accordance with applicable securities laws.