Pacific North West Capital Closes 2nd Tranche Private Placement Raising $409,765
June 29, 2016 (Source) — Pacific North West Capital Corp. (“PFN”, the “Company”) (TSX.V: PFN; Frankfurt: P7J.F; OTCQB: PAWEF announces that further to its news releases dated April 18, 2016, May 3, 2016 and June 13, 2016, the Company has closed the 2nd tranche of its private placement raising $409,765.
The Company issued 7,450,289 non flow-through units (“Units”) at a price of $0.055 per Unit. Each Unit consists of one common share and one non-transferable share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.10 per share during the first year and $0.20 per share during the second year, for a period of two years from closing.
The proceeds of the private placement will be used for working capital and for the acquisition and exploration for Lithium projects in Canada and the USA. The proceeds of this private placement will also be used for funding advanced stage exploration on the Company’s 100% owned River Valley Platinum Group Metals project (“PGM”) near Sudbury, Ontario.
Finder’s fees were paid in connection with the private placement in the amount of $2,194.50 in cash and 39,900 broker warrants. The broker warrants are on the same terms as the financing warrants.
All securities issued in connection with the private placement are subject to a four month and a day hold period expiring on October 30, 2016.
About The Company’s Lithium Division
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The company’s new Lithium Division will focus on the acquisition, exploration and development of Lithium Projects in Canada. In the United States, the company will use its wholly owned U.S.A subsidiary to acquire and develop projects in active mining camps in Nevada, Arizona and California.
Management believes that these New Age Metals, Lithium, PGM’s and Rare Earths, have robust macro trends with surging demands and limited supply. Going forward, this new division will explore for the minerals needed to fuel the demand for energy storage and other core 21st Century Technologies.
In addition to the Lithium Brine potential of the CV West Li Project in Nevada, the company has and is developing Hard Rock Lithium Projects in Canada (April-21st-2016-PFN- Clayton Valley). The Lithium One Project in southeast Manitoba: May-3rd-2016-PFN-Completes-acquisition-Lithium-One- is located 8.5 kilometers south of the Tanco Mine Site, North America’s richest and longest operating Hard Rock mine for Tantalum, Lithium and Cesium. Recently, PFN adds another Manitoba site: May-24th-2016-PFN-grabs-Lithman-West-Lithium-Project, along with a 3rd site: June-15th-2016-Pacific-North-West-Capital-Acquires-4th-100%-Owned-Lithium-Project-Lithman-North.
Lithium and Platinum group metal prices have improved dramatically in recent months. Lithium supplies remain in deficit relative to their demand. Both metals groups are used for the expanding worldwide automobile industry (conventional and electric). In the case of PGM’s, demand is increasing for Autocatalysts, a key component for reducing toxic emissions for automotive, gasoline and diesel engines. In regards to Lithium, there is an ever increasing demand for batteries in cellphones, laptops, electric cars, solar storage, wireless charging and renewable energy products.
About the company’s Platinum Group Metals Division
Achievements to date and future plans for River Valley are outlined below as follows:
- PFN currently has 100% ownership in the River Valley Project, subject to a 3% NSR, with options to buy down
- Completed exploration and development programs on the River Valley property include more than 600 holes drilled since year 2000 and several mineral resource estimates and metallurgical studies;
- Results for the current (2012) mineral resource estimate are below;
- 2015 drill program confirms new high grade T2 discovery
- Exploration and development plans outlined for 2016
- Ongoing strategic partner search for River Valley project
- Results for the most recent Metallurgical Study are summarized below:
- Prepared by Tetra Tech (formerly Wardrop)
- High Confidence: Measured plus Indicated = 72% of total
- Reported on PdEq basis: Pd=40% & Pt=20% of the payable metals
- Pd to Pt ratio = 2.5:1; Cu to Ni ratio = 3:1
- High Grade potential, particularly in the north part of River Valley deposit
- Resources under evaluation for development potential as open pit mining operation
- Results for the 2015 discovery drill program on the T2 target are as follows:
- Drill hole intercepts much higher than the average grade of current mineral resource estimate
- Possible new mineralized zone at the north end of the River Valley deposit
- Show potential to take the River Valley PGM Project in a new direction
- More drilling required
- Exploration and Development Plans for 2016
- Mineral prospecting and geological mapping on surface
- Drill programs targeted to add more higher grade
- Geological interpretation and 2D/3D modelling of all drill and surface results
- Application to the OPA’s Junior Exploration Assistance Program (JEAP) for 33% refund of all exploration expenditures up to $300,000.
- Strategic Partner Search for River Valley
- River Valley exploration programs begin in early July 2016
The contents contained herein that relates to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Dr. Bill Stone, Principal Consulting Geoscientist for Pacific Northwest Capital. Dr. Stone is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical content.
On behalf of the Board of Directors
” Harry Barr “
Chairman and CEO
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.
Cautionary Note Regarding Forward Looking Statements. This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as “continue”, “efforts”, “expect”, “believe”, “anticipate”, “confident”, “intend”, “strategy”, “plan”, “will”, “estimate”, “project”, “goal”, “target”, “prospects”, “optimistic” or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company’s ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward-looking statements.
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