Great Atlantic Commences Exploration Program on the Golden Promise Gold Property in Central Newfoundland and Announces Financing of $800,000
FOCUSED ON EXPLORING ATLANTIC CANADA
(TSXV : GR)
VANCOUVER, British Columbia – May 30, 2017 – GREAT ATLANTIC RESOURCES CORP. (TSXV.GR) (the “Company” or “Great Atlantic”) is pleased to announce it has expanded the Golden Promise Property in central Newfoundland by means of claim staking, joining the Golden Promise and Southern Golden Promise Properties. The company has commenced the 2017 $700,000 budgeted exploration program on the property. Great Atlantic recently staked 3 licences totalling 245 claims covering geological prospective ground joining the Golden Promise claims and the Company’s recently acquired Southern Golden Promise claims (News Release of May 3, 2017), creating one enlarged property, which the Company now refers entirely as Golden Promise. The Golden Promise Property currently totals approximately 16,500 hectares.
The Golden Promise Property hosts multiple gold-bearing quartz veins and gold-bearing float boulders. A National Instrument (NI) 43-101 compliant inferred resource of 921,000 tonnes at an average grade of 3.02 g/t Au (89,500 ounces contained gold) was reported in 2008 for the Jaclyn Main Zone located in the central region of the property. Gold recovery from a 2,241 tonne bulk sample collected in 2010 at the Jaclyn Main Zone was reported to average 4.47 g/t Au. The average tails grade for the sample was reported to be 1.12 g/t Au. A “back-calculated head grade of 5.59 g/t Au” was reported for the bulk sample. The Jaclyn Main Zone has been reportedly traced for a strike length of approximately 800 meters (northeast to east striking) through trenching and diamond drilling and locally to approximately 420 meters vertical depth. Elsewhere in the central to northern regions of the property high grade gold has been reported at the Shawn’s Shot occurrence including a historic grab sample reported to return 100.5 g/t Au and at two boulder occurrences including historic samples reported to return 335.9 g/t Au and 80.0 g/t Au at the Justin’s Hope and Branden boulder occurrences.
The recently acquired southern region of the Golden Promise Property (previously referred to as Southern Golden Promise) is reported to contain 2 gold bearing zones. A historic diamond drill hole at the Linda / Snow White occurrence in this region was reported to intersect 19.5 g/t Au over 1.15 meters (core length with true width unknown). A sulfide bearing quartz vein at this occurrence was reported to be traced for 170 meters, having a reported width up to 5 meters. A 0.5 meter long channel sample across the vein was reported to return 29.7 g/t Au. A grab sample was reported to return 232 g/t Au. The Linda / Snow White occurrence is located approximately 22 kilometres southwest of the Jaclyn Main Zone. Another occurrence referred to as the Gabbro Gold occurrence is reported in the southern region of the property. Grab samples were reported to include 10.04 and 9.14 g/t Au at this occurrence.
Other gold-bearing occurrences reported on the Golden Promise Property include Jaclyn North, Jaclyn South, Jaclyn East, Jacklyn West (also referred to as Christopher Zone), GP04-41 and Otter Brook. Historic reported samples (including drill core samples) for these zones are summarized in the News Release of May 31, 2016.
The 2008 NI 43-101 Technical Report states the style of veining, mineralization, alteration, host rock and tectonism at Golden Promise most closely resembles other turbidite-hosted (or slate belt) gold deposits throughout the world.
Great Atlantic has commenced the 2017 exploration program at the Golden Promise Property, budgeted for approximately $700,000. The initial May program consists of rock and soil geochemical sampling at select gold occurrences. Work is currently being conducted at the Branden and Shawn’s Shot occurrences. Ground geophysics, diamond drilling and trenching is planned, beginning in June with work planned at multiple zones, including the Jaclyn Zones, Shawn’s Shot, Justin’s Hope, Branden and Linda / Snow White.
Access is excellent with a paved provincial highway transecting the property. The property is located near the town of Badger and approximately 50 kilometres northeast of the Valentine Lake Property of Marathon Gold Corp.
Readers are warned that historical records referred to in this News Release have been examined but not verified by a qualified person. Further work is required to verify that historical assays referred to in this News Release are accurate.
David Martin, P.Geo., a Qualified Person as defined by NI 43-101, is responsible for the technical information contained in this News Release.
Great Atlantic Resources Corp. is also pleased to announce that is has arranged a non-brokered private placement of 8,000,000 units at a price of $0.10 cents per unit for gross proceeds of $800,000. The units of the financing will comprise of one common share and a full share purchase warrant, which may be exercised for a period of five years at a price of $0.125 per share. The term of the warrants may be accelerated in the event that the issuer’s shares trade at or above a price of $0.15 cents per share for a period of 10 consecutive days. In such case of accelerated warrants, the issuer may give notice, in writing or by way of news release, to the subscribers that the warrants will expire 30 days from the date of providing such notice. Directors, officers or other insiders of the Company may participate in the foregoing offerings, and such parties may sell securities of the Company owned or controlled by them personally through the facilities of the TSX Venture Exchange to finance participation in such offerings. The Company will make available a portion of the offering to existing shareholders using provisions of the Canadian existing security holder exemption pursuant to Multilateral CSA Notice 45-313 – Prospectus Exemption for Distributions to Existing Security Holders (“CSA 45-313”) and the corresponding blanket orders and rules implementing CSA 45-313 in the participating jurisdictions in respect thereof (collectively with CSA 45-313, the “Existing Security Holder Exemption”). As at the date hereof, the Existing Security Holder Exemption is available in each of the provinces of Canada, with the exception of Newfoundland and Labrador. Subject to applicable securities laws, the Company will permit each person or company who, as of May 29, 2017 (being the record date set by the Company pursuant to CSA 45-313), who holds common shares as of that date (a “Current Shareholder”) to subscribe for the Units that will be distributed pursuant to the Offering, provided that the Existing Security Holder Exemption is available to such person or company. Pursuant to CSA 45-313, each subscriber relying on the Existing Security Holder Exemption may subscribe for no more than $15,000 value of securities, unless a subscriber is resident in a jurisdiction of Canada and has obtained advice regarding the suitability of the investment from a registered investment dealer (in which case such maximum subscription amount will not apply). In addition to conducting the Offering pursuant to the Existing Security Holder Exemption, the Company will also accept subscriptions for Units where other prospectus exemptions are available, including the Investment Dealer Exemption (as defined below). Any Current Shareholder subscribing for Units pursuant to a prospectus exemption other than the Existing Security Holder Exemption will not be limited to a maximum of $15,000 value of securities. In addition to the Existing Security Holder Exemption and other available prospectus exemptions, a portion of the Offering may be completed pursuant to Multilateral CSA Notice 45-318 – Prospectus Exemption for Certain Distributions through an Investment Dealer (“CSA 45-318”) and the corresponding blanket orders and rules implementing CSA 45- 318 in the participating jurisdictions in respect thereof (collectively with CSA 45-318, the “Investment Dealer Exemption”). As at the date hereof, the Investment Dealer Exemption is available in each of Alberta, British Columbia, Saskatchewan, Manitoba and New Brunswick. Pursuant to CSA 45-318, each subscriber relying on the Investment Dealer Exemption must obtain advice regarding the suitability of the investment from a registered investment dealer. There is no material fact or material change of the Company that has not been generally disclosed. The securities issued pursuant to the Offering will be subject to statutory hold periods.
A finder’s fee may be paid to eligible finders in accordance to the TSX-V policies. All securities issued pursuant to the offering will be subject to a hold period of four months and one day from the date of closing. The offering and payment of finders’ fees are both subject to approval by the TSX-V.
On Behalf of the board of directors
About Great Atlantic Resources Corp.: Great Atlantic Resources is a Canadian exploration company focused on the discovery and development of mineral assets in Atlantic Canada. Great Atlantic is currently building the company, with a focus on antimony, tungsten and gold.
This press release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.
Neither 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.
Great Atlantic Resource Corp
888 Dunsmuir Street – Suite 888, Vancouver, B.C., V6C 3K4