July 20, 2016
Logan Resources Ltd. (TSX-V: LGR) (“Logan” or the “Company”) is pleased to announce that it has appointed Dr. Craig Bow as Vice President Exploration to coordinate the Company’s exploration programs. Dr. Bow has over 35-years of domestic and international exploration experience. Dr. Bow obtained his Ph.D. in geology from the University of Oregon in 1979, and subsequently his global hard-rock exploration experience has extended to over a dozen countries, from greenfields exploration projects to advanced staged development. Domestically, he has direct mineral exploration experience in Nevada and Utah; most recently as a Consulting Geologist for AngloGold Ashanti. Dr. Bow is a Qualified Person with the American Institute of Professional Geologists and the Society of Economic Geologists.
Dr. Bow’s accomplishments over his distinguished career included:
- Contributing to the evolution of the Stillwater PGE project from an initial exploration stage to positive production decision;
- Directing Cyprus Amax entry into Cu/Au exploration in north/central Peru and Colombia (Rio Blanco and Murindo porphyry projects);
- Enhancing the performance of Newcrest as an Au explorer in South America by focusing on deposits with superior economics, and by increasing drill budgets, improving project quality, and decreasing overhead;
- Managing a technically and financially successful Au exploration program in Central America and Canada as Exploration Manager North America for Gold Fields. Provided the catalyst for Gold Fields entry into the Arctic Platinum partnership with Outokumpu.
Dr. Bow will focus on developing and managing the exploration program on the gold exploration properties that are under option from Pilot Gold (see July 7, 2016 press release). The Company has received conditional approval from the TSX Venture Exchange (“TSXV”) for the transaction with Pilot Gold and is in the process of preparing the documentation required for final approval.
Logan also announces that the non-brokered private placement (the “Offering”) announced in its press release dated July 7, 2016 is significantly oversubscribed. There has been a 10% increase to the size of the Offering to 22,000,000 units for gross proceeds of $2.2 million. Each unit will consist of one common share and one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall be exercisable to acquire one common share for a period of 36 months at an exercise price equal to $0.30.
The Company intends to use the net proceeds of the Offering to continue to evaluate and explore the mineral properties as per the Company’s option agreement with Pilot Gold and for general corporate and working capital purposes.
The Company also announces that it has agreed with certain of its creditors to convert $100,000 in outstanding debt into 1,000,000 common shares of the Company issued at a deemed price of $0.10 per common share. The Company proposes to settle this outstanding indebtedness with common shares in order to preserve its cash for operations. The shares for debt transaction remains subject to the approval of the TSX-V.
Finally, the Company announces that upon the closing of the Offering it will grant incentive stock options to purchase a total of 2,800,000 common shares of the Company at an exercise price of $0.12 per share to certain directors, officers, and consultants of the Company. The options have a term of five years from the date of issuance and vest over a two year period.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
Logan Resources Ltd. is a mineral exploration company that specializes in acquiring, exploring and advancing mineral properties. For more information on the property portfolio and Logan, please visit www.loganresources.ca.
LOGAN RESOURCES LTD.
On behalf of the Board
Chief Financial Officer
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Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to (i) the closing of the transaction with Pilot Gold, (ii) the receipt of regulatory approvals, (iii) the Company’s exploration plans and (v) the anticipated use of proceeds from the Offering.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources, the realization of resource and reserve estimates, gold and other commodity prices, the timing and amount of future exploration and development expenditures, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Company’s properties in the short and long-term and to acquire new properties, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access infrastructure, risks relating to changes in uranium and other commodity prices and the worldwide demand for and supply of gold and related products, risks related to increased competition in the market for uranium and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities on the Company’s properties, or to acquire new properties, may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, environmental risks and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators.
Although the Company 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 not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.