VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 7, 2015) - Coventry Resources Inc. (ASX:CYY) -
- Placement to raise circa A$675,000 at A$0.03 per share
- Funds raised to be used to continue to advance the exploration and development of the high-grade Caribou Dome Copper Project in Alaska
2. CAPITAL RAISING
Coventry Resources Inc. (ASX:CYY) ("Coventry" or "the Company") is pleased to announce it has received commitments from institutional and sophisticated investors to subscribe for approximately 22.6 million common shares, to be held in the form of CHESS Depositary Interests ("Shares"), at A$0.03 per Share, to raise approximately A$675,000 ("the Placement").
Funds raised will be used to continue to advance exploration and development of the highly prospective high-grade Caribou Dome Copper Project in Alaska, USA (the "Caribou Dome Project" or "the Project").
Settlement of the Placement, which is being undertaken within the Company's available capacity under the ASX Listing Rules, is expected on or around 11 December 2015.
3. FORWARD PLANS
Coventry recently completed its inaugural drilling program at the underexplored Caribou Dome Project. Exceptional results were returned, including the discovery of three new substantial zones of mineralisation. Results from new exploration drilling included:
- 14.1m @ 9.9% Cu from 134.6m
- 7.0m @ 6.8% Cu from 35.1m
- 3.5m @ 9.3% Cu from 72.9m
- 2.0m @ 13.9% Cu from 79.4m
- 3.7m @ 7.3% Cu from 39.0m
- 1.9m @ 10.8% Cu from 116.0m
- 1.8m @ 10.4% Cu from 30.4m
Results from confirmatory drilling included:
- 51.1m* @ 5.3% Cu from 4.4m
- 10.1m @ 7.1% Cu from 39.0m
- 10.6m @ 5.4% Cu from 30.6m
- 4.6m @ 10.6% Cu from 3.0m
- 8.9m @ 5.0% Cu from 32.6m
|* True width estimated to be approximately 25m
High-grade mineralisation extends over the entire 700m long corridor that has been subject to drilling to date. Mineralisation remains open in both directions along strike and at depth. Numerous high-quality soil geochemistry and induced polarisation ("IP") anomalies are evident immediately along strike from the known mineralisation, providing considerable opportunity to continue to rapidly expand the resource base at the Project.
Assay data from the recent drilling program are currently being incorporated into an updated geological model of the mineralisation. Approximately 70kg of drill core samples are currently being freighted to a laboratory so further metallurgical testing can be completed over the coming months.
Results from these two programs will be utilised to undertake preliminary mining studies that will most likely evaluate the development of a low-CAPEX, moderate-sized, high-grade copper operation. These preliminary mining studies will be used to help guide further exploration drilling at the Project in 2016.
Notwithstanding the commencement of mining studies, mineralisation at the Project remains open in all directions. Abundant undrilled IP and copper-in-soil anomaly targets are evident both within and outside the immediate 700m long corridor that has been subject to drilling to date. With >15km of prospective strike yet to be tested, further exploration drilling presents compelling upside and will continue in conjunction with mining studies and mine permitting activities, as there is considerable potential to continue to increase the resource base, and thereby enhance the economics of developing a mining operation, at the Project.
Mike Haynes, CEO/President
Qualified and Competent Person
The information in this announcement that relates to exploration results for the Project is based on information compiled by Mr Ben Vallerine, who is a consultant to the Company and holds an indirect shareholding in the Company. Mr Vallerine is a Member of the Australian Institute of Geoscientists. Mr Vallerine has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results (JORC Code). Mr Vallerine is also a Qualified Person as defined by Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr Vallerine consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
This news release may contain "forward-looking statements" and/or "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, forward-looking information"). Any forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, Coventry Resources Inc. ("Coventry") does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, statements with respect to resource project identification and evaluation and expected outcomes. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved.
Any forward-looking information contained in this news release is based on certain assumptions that Coventry believes are reasonable, including, that the current price of and demand for mineral commodities will be sustained or will improve, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms, that supplies, equipment, personnel, permits and local community approval required to conduct Coventry's planned exploration and development activities will be available on reasonable terms and that Coventry will not experience any material accident, labour dispute, or failure of equipment.
However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Coventry to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks and uncertainties relating to the actual results of exploration activities being different than anticipated, cost of labour increasing more than expected, cost of equipment or materials increasing more than expected, fluctuations in the commodity prices, currency fluctuations, risk of accidents, labour disputes and other risks generally associated with mineral exploration and unanticipated delays in obtaining or failing to obtain governmental or community approvals or financing. Although Coventry has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.