Pacific North West Capital Announces $750,000 Private Placement to Fund Lithium and Platinum Group Metal Divisions
April 18, 2016 (Source) — Pacific North West Capital Corp. (“PFN” and the “Company”) (TSX.V: PFN; Frankfurt: P7J.F; OTCQX: PAWEF announces that that it intends to complete a non‐brokered private placement for up to 13,636,363 units at a price of $0.055 per unit raising gross proceeds of up to $750,000. Each unit is comprised of one common share and one share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the Company at an exercise price of $0.10 per share during the first year and $0.20 during the second year, for a period of two years from closing, subject to the acceptance of the TSX Venture Exchange.
The proceeds of the private placement will be used for the acquisition and exploration of Lithium projects in PFN’s newly formed subsidiary, Lithium Canada Inc., for funding advanced exploration on the company’s 100% owned River Valley PGM project near Sudbury, Ontario, one of the largest undeveloped primary PGM resources in Canada, and for general working capital.
Finder’s fees may be paid in connection with the private placement.
The shares to be issued with respect to the private placement will be subject to a four‐month and a day hold period in accordance with applicable Canadian Securities Laws. Completion of the private placement and any finder’s fees payable are subject to regulatory approval.
On April 14th, the company announced the formation of Lithium Canada Inc. which 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.
The Company’s management believes that adding an additional “green metal” to its existing Platinum group metals (PGM’s) division is warranted. 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. This new direction will involve the acquisition of new projects and adding to our existing technical team.
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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 Pacific North West Capital Corp.
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;
- 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
- Formation of Lithium Canada Inc., a wholly owned subsidiary
-Prepared by Tetra Tech (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
8.Results for the most recent Metallurgical Testwork Study are summarized below:
9.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
10.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
For further information, please see the press releases dated Apr 14, 2016, April 6, 2016, visit PFN’s website at www.pfncapital.com, or email us at firstname.lastname@example.orgOn behalf of Management and the Board of Directors, I wish to thank you for your patience and continued support over the last 5 years and we look forward to a strong comeback and rotation of funding back into the Junior Mining industry.
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 PFN. 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
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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