Tickers: XTSX:GYA, FRAA:1ZT, PINX:GYNAF
February 27, 2018 / TheNewswire / Vancouver, Canada - Guyana Goldstrike Inc. (the "Company" or "Guyana Goldstrike") (TSXV: GYA, OTC: GYNAF, FSE: 1ZT) is pleased to announce that it has completed a non-brokered private placement of 13,900,000 units (each, a "Unit") at a price of $0.25 per Unit for gross proceeds of $3,475,000. Each Unit consists of one common share of the Company, and one common share purchase warrant exercisable to acquire an additional common share at a price of $0.35 for a period of twenty-four months. All securities issued in connection with the placement are subject to a four-month-and-one-day statutory hold period.
The placement included a $3,200,000 strategic investment by Gold Mountains Asset Management Limited ("GMA"), a wholly-owned subsidiary of Zijin Mining Group. The investment was completed by Zijin Global Fund ("Zijin Global") and Zijin Midas Exploration Fund LLC ("Zijin Midas"), both managed by GMA. Following completion of the placement, GMA has control of 12,800,000 common shares of the Company, representing approximately 24.4% of the Company's current issued and outstanding common shares, and 12,800,000 common share purchase warrants. Ownership of the common shares and warrants is held by Zijin Global and Zijin Midas. GMA would have control of 25,600,000 common shares of the Company, representing approximately 39.3% of the then issued and outstanding common shares of the Company, assuming exercise of only the warrants controlled by GMA.
The securities were acquired by GMA for investment purposes, on behalf of Zijin Global and Zijin Midas. In the future, additional securities of the Company may be acquired or disposed of by GMA, Zijin Global or Zijin Midas, through the market, privately or otherwise, as circumstances or market conditions may warrant.
Proceeds from the placement will be used to advance the Company's flagship Marudi Gold Project ("Marudi") in Guyana, South America. The placement will allow the Company to fund its ongoing multi-phase exploration program at Marudi, involving up to 10,000 metres of diamond drilling and 12,000 metres of trenching.
The Company is also pleased to announce that its board of directors has approved the appointment Sha "Lisa" Liu as a director of the Company effective March 1, 2018.
About The Marudi Gold Project
The property, located in Guyana, South America, is unique in that it has a mining license in good standing, all-season road access, infrastructure in place, with an established mining camp serviced by employees, service buildings, and a full-time mining manager. The property has three known gold bearing areas, specifically the alluvial areas, the saprorlite overburden, and the underlying hard-rock. There has been 42,000 metres of historic diamond drilling (141 holes) completed on the Project by prior operators. The Company has recently completed a mineral resource estimate on the Mazoa Hill zone of 259,100 indicated gold ounces within 4,428,000 tonnes grading 1.80 grams/tonne (g/t) and 86,200 inferred gold ounces within 1,653,000 tonnes grading 1.60 grams/tonne (g/t). There exists excellent exploration upside through the development of previously identified, highly-prospective mineralized targets on the Project. For information concerning the mineral resource estimate and the Project, readers are encouraged to review "Technical Report: Marudi Property Mazoa Hill Mineral Resource Estimate", a technical report prepared for the Company by Global Mineral Resource Services and is available on the Company's website located at (http://www.guyanagoldstrike.com/images/pdf/43-101_Report_Guyana_Goldstrike_Mazoa_Hill_Zone_Jan_2018.pdf) and under the Company's profile on SEDAR (www.sedar.com).
The Republic of Guyana is located in South America between Venezuela and Suriname. The country is English speaking and under British Common Law with a democratically-elected government. It has an established mining act and a rich history of gold production. In 2016, 690,000 ounces of gold was produced by operators mining in the country. The Fraser Institute's 2016 Annual Survey of Mining listed Guyana as the third best mining jurisdiction with regards to investment attractiveness in the Latin America and Caribbean Basin sub-group. The Guiana Shield is the geographic gold-hosting region, and is world-recognized as a premier gold region that is highly prospective, under-explored and has geological continuity with West Africa.* In 2016, two mines in Guyana declared the commencement of commercial production: the Aurora deposit (Guyana Goldfields) and the Karouni deposit (Troy Resources).
* Independent Technical and Environmental Review Karouni Gold Project - Guyana, Behre Dolbear Australia Pty Ltd, April 29, 2016
Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief Geologist and Exploration Manager for the Company, is a Qualified Person in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Goldsmith has reviewed and approved the scientific and technical content of this news release.
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
President and Chief Executive Officer
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.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, changes in exploration costs and government regulation in Guyana, status of artisanal mining activities and associated rights, and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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