DFR Gold Inc. Announces Exploration and Financing
Exploration – Cascades
The Company intends to resume field work with the narrowed focus of mineral resource definition at the Daramandougou deposit and one or more of the newly discovered deposits in the Wuo Land 2 licence area, starting with the Sina Yar target which is approximately 4km east of Daramandougou.
Cascades has a mineral resource, as calculated in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects, comprising 5.41 million tonnes of indicated resources at an average grade of 1.52g/t Au for a total 264,000 ounces of gold and 6.93 million tonnes of inferred resources at an average grade 1.67g/t Au for a total of 371,000 ounces of gold. Please see the Company's technical report titled "Amended and Re-stated Technical Report on the Labola Project Burkina Faso" dated
Historical drilling on the
A mapping programme started in Quarter 2 continued until the onset of heavy rains and has already confirmed that the vein swarm array extends over a strike length of at least 300 metres within the known
The Company is optimistic about the potential for the remodelling to define a significantly higher-grade and relatively easily accessible mineral resource at the Western zone.
An Induced Polarisation geophysics survey ("IP") over the currently defined
Financing
The Financing consists of term loans (collectively, the "Loan") to the Company from Spirit and Kiernan (the "Lenders") on the following terms:
- Spirit shall provide a term loan amounting to
US$600,000 ; - Kiernan shall provide a term loan amounting to
US$400,000 - The Loan is available in multiple drawdowns of multiples of
US$50,000 from each of Spirit and Kiernan and shall be used for general working capital purposes and exploration work; - The Loan is unsecured and bears interest at the rate of 8% per annum;
- The Loan is repayable in full on or before
31 July 2025 (the "Repayment Date"); and - The Company shall repay the Loan earlier if it completes a financing equivalent to
US$2,800,000 or more prior to the Repayment Date.
Upon completion of the drawdowns of the Financing and prior to any repayment, the cumulative amount of debt owing by the Company to each Lender will be
This Financing constitutes a related party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Financing is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101, and exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(f) of MI 61-101.
Notes to Editors:
Approval of disclosure of technical information
Mr. Kieran Harrington PGeo EurGeol, Vice President Exploration of
About DFR Gold
DFR Gold is a
DFR Gold holds a controlling interest in
In
Website: www.dfrgold.com
The Company's public documents may be accessed at www.sedarplus.ca
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the
Forward-Looking Statements:
This release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact in this release that address activities, events or developments that DFR Gold expects or anticipates will or may occur in the future are forward-looking statements or information. Forward-looking statements in this news release include statements regarding
There are a number of important factors that could cause DFR Gold's actual results to differ materially from those indicated or implied by forward-looking statements and information. Such factors include, among others: the ability to obtain requisite regulatory approvals; the ability to renew mineral licenses and secure new exploration licenses the ability to finance drilling campaigns and exercise its options to acquire exploration permits; exploration works delivering the expected results; the commodity prices; the gold exploration and mining industry in general; the potential impact of the announcement on relationships; including with regulatory bodies, employees; suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; and compliance with extensive government regulation. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statement prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
DFR Gold cautions that the foregoing list of material factors is not exhaustive. When relying on DFR Gold's forward-looking statements and information to make decisions, shareholders should carefully consider the foregoing factors and other uncertainties and potential events. DFR Gold has assumed that the material factors referred to in the previous paragraph will not cause such forward looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this release represents the expectations of DFR Gold as of the date of this release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward looking information and should not rely upon this information as of any other date. While DFR Gold may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
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