Nouveau Monde Completes a 1500m Exploration Drilling Campaign on the Matawinie Property and Announces Maximum Offering of $2,000,000
December 5, 2013 (Source: Marketwired) — Nouveau Monde Mining Enterprises Inc. (“Nouveau Monde” or the “Corporation”) (TSX VENTURE:NOU) is pleased to announce the successful completion of the 2013 Fall drilling program on the “Ti-Nou” and “Gros-Nou” areas of the Matawinie graphite Property (see October 23rd news release). The late October to late November drill campaign consisted of 19 BQ size drill holes totaling 1505 m.
The objective of the program was to confirm graphite mineralization at depth by targeting geophysical anomalies provided by detailed ground surveys. The surveys, completed in October 2013, included magnetics, frequency domain Max-Min electromagnetics and portable time domain electromagnetics. Two grids totalling 32.3 km of lines were surveyed. They cover two distinct kilometric airborne electromagnetic anomalies referred to as “Ti-Nou” and “Gros-Nou”.
A first batch of 192 split core samples averaging 1 m length were sent to the ALS Minerals laboratory to undergo graphitic carbon and total sulfur/total carbon analysis. Results are expected early in 2014 and will be reported when received.
Concurrent to the drill campaign, a trenching program was also initiated over shallow (< 15 m) electromagnetic targets defined by an innovative time-domain electromagnetic technology developed and tested in partnership with Nouveau Monde and referred to as the PhiSpy system. The graphite mineralization was confirmed in all of the 7 excavated trenches located in various areas along the multi-kilometric conductor. A total of 12 grab samples were collected from the trenches to undergo graphitic carbon and total sulfur/total carbon analysis.
The Matawinie Property consists of six group of claims located about 140 km north of Montreal. The claims are contained within a 50 km radius just North of St-Michel-des-Saints in the Matawinie regional county municipality, Province of Québec. Nouveau Monde has an option to acquire 100% interest in the property (see February 12th 2013 press release for details). These claims are located at the Eastern limit of the highly prospective Central Metasedimentary belt of the Grenville geological province, host to many active graphite projects. The host rocks in that region are graphitic crystalline marbles and paragneiss, similar to the host stratigraphy at Timcal’s Lac des Iles graphite mine, currently Canada’s only producing graphite mine and at located at a trucking distance from the Matawinie property.
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QUALITY CONTROL AND QUALITY ASSURANCE
The drill program was supervised by Antoine Cloutier, Géo (Québec), B.Sc. A strict protocol including the insertion of duplicate and blank samples within the sample stream was adopted as part of a quality assurance, quality control (or QA/QC) program. Verification, preparation and sample submittal for the fall of 2013 drill campaign was completed by M. Cloutier.
All samples will be analyzed for graphitic carbon (or “Cg”) content using a LECO analyzer by performing a dilute acid digestion, roasting followed by combustion furnace (ALS code; C-IR18) at the ALS Laboratory Group located in North Vancouver (B-C), Canada. This laboratory is accredited with the ISO 9001:2008 and ISO 17025 certifications. Total sulfur (or “S”) as well as total carbon (or “C”) will also be analyzed by the ALS Laboratory Group (ALS code; ME-IR08).
The technical information in this news release was prepared by Antoine Cloutier, Géo, and Joël Dubé, Eng. Both are consultants for Nouveau-Monde and are qualified persons under National Instrument 43-101.
Nouveau Monde is also pleased to announce that intends to complete a non-brokered offering by the issue of the common share units and the flow-through common shares for aggregate gross proceeds of $2,000,000 (the “Offering”). The Offering is expected to close on or about December 20, 2013. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals.
Each Unit subscribed for under the Offering is comprised of one common share of the share capital of the Corporation and one-half of one common share purchase warrant. Each whole common share purchase warrant shall entitle the holder thereof to subscribe for one common share of the Corporation, at a price of $0.26 per common share, for a period of 18 months following the closing of the Offering. Each flow-through common share subscribed for under the Offering will be issued at a price of $0.26 per flow-through common share. The Corporation may pay a cash commission to brokers or limited market dealers up to 8 % of the gross proceeds and issue compensation options up to 8 % of the number of common shares or flow through shares issued pursuant to the Offering. The compensation option will entitle the holder to subscribe for one common share of the Corporation at a price of $0.26 per common share for a period of 18 months following their issuance.
The net proceeds of the Offering will be used by Nouveau Monde for its working capital and to incur exploration expenses on its properties.
All securities to be issued pursuant to the Offering are subject to a restricted period of four months and a day under applicable Canadian securities regulation.
The securities issued under the Offering have not been registered under the United States Securities Act of 1933 (the “Act”) or any state securities laws and may not be offered or sold absent registration under the Act and applicable state securities laws or an applicable exemption from the registration requirements thereof. This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or an exemption there from.
About Nouveau Monde
Nouveau Monde is a mining exploration company holding a large portfolio of base and precious metals and industrial minerals in the province of Québec. Our business model is based on the generation of projects in new underexplored territories using the most advanced remote sensing and geophysical tools available in the industry. Our expertise with these modern tools allows us to save on exploration cost leading to much efficient area coverage to maximize discovery chances. Our company is looking to develop its prospects in partnership with the objectives to expose our shareholders to a multitude of possibilities to hit that game changing deposits. This leverage transforms every dollar spent by Nouveau Monde in many dollars of exploration on our properties.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This announcement is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemptions. No public offering of securities is being made in the United States.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Nouveau Monde will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Nouveau Monde.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>