Desert Gold Closes First Tranche of Non-Brokered Private Placement and Provides Exploration Update
Delta, British Columbia--(Newsfile Corp. - June 19, 2019) - Desert Gold Ventures Inc. (TSXV: DAU) (FSE: QXR2) (OTC Pink: DAUGF) (the "Company") is pleased to announce that it has closed a first tranche (the "First Tranche") of its non-brokered private placement of up to 15,625,000 units at a price of CDN $0.16 per unit (the "Unit") to raise up to an aggregate of CDN $2,500,000 (the "Financing"). In the First Tranche the Company has raised proceeds of $1,713,586.58 through the sale of 10,709,916 Units. Securities issued as a result of closing of this first tranche will be subject to a statutory hold period. In connection with closing the First Tranche, the Company paid finder's fees of $36,785 and issued 229,897 non-transferable brokers warrants.
Pursuant to the terms of the Financing, each Unit consists of one common share in the equity of the Company and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of CDN $0.24 per share for a period of two (2) years from the closing of the Financing.
The proceeds of the Financing will be used for drilling and other exploration activities at the Company's Senegal Mali Shear Zone Project in Western Mali ("SMSZ Project"). The Company closed a First Tranche in order to complete important exploration work before the beginning of the rainy season in Western Mali, which usually begins in early July and continues through early October. The Financing will remain open until July 7, 2019 due to ongoing investor interest.
Update on Senegal Mali Shear Zone Project 2019 Exploration Program
The next round of exploration has commenced over Desert Gold's SMSZ Project. This phase of the program will consist of the following activities (See Figure 1).
- Drilling to further test the 550-metre long Barani East Zone which returned a recent intercept of 6.28 g/t gold over 13 metres at approximately 80 metres depth. This target area is open along strike and to depth
- Drilling to test the new Frikidi and Kousilli Zones where recent mapping and sampling returned multiple gold values in excess of 100 g/t gold
- Drilling to follow up on the KE Zone where previous work returned up to 5.89 g/t gold over 8 metres
- Drilling to follow-up on validated, gold-in-soil anomalies of greater than 200 ppb gold
- Approximately 8,000 metres of auger drilling to develop targets in a laterite-covered, conceptual target area where three mineralized zones appear to intersect
- Initiate the process of re-modelling the Gourbassi East and West Deposits, which have returned significant amounts of gold mineralization. Once the modelling is updated, drilling will be carried out to validate the new model in Q4, 2019
Figure 1. Senegal Mali Shear Zone Project Map
To view an enhanced version of Figure 1, please visit:
All grab samples were geologically described following Desert Gold's established standard operating procedures. For grab sampling, all individual samples represent approximately 2-3 kilograms that is sent for preparation and gold assaying at the SGS laboratories in Bamako, Mali. Each sample is fire-assayed for gold by SGS laboratories in Bamako using Au-FAA505 method that is a 50g fire assay fusion with AAS instrument finish. In addition to SGS own QA/QC (Quality Assurance/Quality Control) program, an internal quality control and quality assurance program is in place throughout the sampling program, using blind duplicates (1 :20), blanks (1 :20) and recognized industry standards(1 :20).
This press release contains certain scientific and technical information of Desert Gold. The Company is solely responsible for the contents and accuracy of any scientific and technical information disclosure relating to it.
Don Dudek, P.Geo. is a director of Desert Gold and a Qualified Person under National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this press release.
On Behalf of the Board
President & Director
About Desert Gold
Desert Gold Ventures Inc. is a gold exploration and development company which holds 3 gold exploration permits in Western Mali (Farabantourou, Segala West and Djimbala) and its Rutare gold project in central Rwanda. Furthermore, Desert Gold is in the process of acquiring a large property package on and near the Senegal Mali Shear zone as part of its SMSZ project, which is anchored by the Farabantourou Concession. For further information please visit www.SEDAR.com under the company's profile. Website: www.desertgold.ca
Jared Scharf, President and Director
Tel. No.: +1 (858) 247-8195
This news release contains forward-looking statements respecting the Company's ability to successfully complete the Offering. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements, including the inability of the Company to successfully complete the Offering. These uncertainties and risks include, but are not limited to, the strength of the capital markets, the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. The Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law. 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 does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the united states securities act of 1933, as amended, and may not be offered or sold in the united states or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such act.
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