Midnight Sun Mining Corp. Drills 24 Meters Grading 3.26% Copper at Solwezi Property, Zambia
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 9, 2013) - Midnight Sun Mining Corp. (the "Company" or "Midnight Sun") (TSX VENTURE:MMA) announces the results from the first four holes of the reverse circulation ("RC") drilling program on the Solwezi copper property in northwest Zambia which commenced in mid-November.
[pre]Hole # From(m) To (m) Width (m) Est True (m) % Cu -------------- ------- ------ --------- ------------ ----- SLZ-RC-13-001 No Significant Results -------------- ----------------------------------------------- SLZ-RC-13-002 20.0 44.0 24.0 20.0 3.26% -------------- ------- ------ --------- ------------ ----- SLZ-RC-13-003 12.0 16.0 4.0 4.0 2.25% -------------- ------- ------ --------- ------------ ----- SLZ-RC-13-004 18.0 30.0 12.0 12.0 0.68% -------------- ------- ------ --------- ------------ -----[/pre]
These results confirm the presence of high grade, near surface copper mineralization in this location. Three additional holes were drilled in this area and assays are pending. All assays in excess of 2% were tested for acid solubility and these generally exceeded 95% acid soluble copper.
The remaining holes in the Solwezi Northwest program will test anomalies from a recently completed geophysical survey using an electromagnetic system (NSAMT) and from soil geochemical programs. All targets are within 10km of the Kansanshi mine, the largest copper mine in Africa, which is operated by First Quantum Minerals (FQM-T).
The Company also intends to drill the significant Kifubwe nickel and copper soil anomalies overlying the favourable Upper and Lower Roan Formations. These geological formations host numerous deposits in the Zambian Copperbelt.
The Company's recently prepared NI 43-101 compliant report entitled "Technical Report on the Geology and Exploration Summary of the Solwezi Group of Prospecting Licences" is available on the company's website here, as well as on www.sedar.com.
All drilling is being carried out by Layne Drilling, a world leader in RC drilling, and assaying is being completed by Genalysis Laboratory Services, an accredited lab located in South Africa.
Qualified Person: Adrian Karolko, P.Geo, a Qualified Person under NI 43-101, has reviewed and approved the technical data and contents of this release.
TSX Venture Approval: The TSX Venture Exchange ("TSX-V") has given final approval to the property option agreement (the "Agreement") between Midnight Sun and Kam Chuen Resource Holdings Ltd. ("Kam Chuen") regarding the acquisition of a 60% interest in the Solweizi Licences in Zambia. Pursuant to the Agreement, Midnight Sun will be issuing 1,333,333 shares in the Company to Kam Chuen at this time. Full details of the Agreement are described in the November 29, 2013 news release, available here.
The TSX-V has also given final approval to the closing of the previously announced non-brokered private placement (the "Private Placement") as described in the November 6 and 26, 2013 news releases available here.
The Company has issued a total of 4,329,350 units at a price of $0.16 per unit for gross proceeds of $692,696. Each unit consisted of one (1) common share ("Common Share") and one (1) transferable common share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one Common Share of the Company for a period of eighteen months from the closing of the offering, at a price of $0.30.
All securities issued pursuant to the first tranche, including the Common Shares underlying the Warrants, are subject to a statutory hold period which expires on March 7, 2014 and all securities issued pursuant to the second tranche on March 27, 2014.
Finder's fees of $18,304 are payable in cash and 114,400 Broker's Warrants are issuable in connection with the Private Placement. Each Broker's Warrant entitles the holder to purchase one common share at a price of $0.30 for a period of 18 month, expiring on May 27, 2015.
Insiders have participated in the first tranche of the Offering by purchasing 1,084,350 units and the second tranche by purchasing 220,000 units, for a total of 1,304,350 units and gross proceeds of $208,696.
About Midnight Sun: Midnight Sun is a mineral exploration company with an African focus. On November 29, 2013 the Company announced that it entered into a definitive agreement to option a 60% interest in the Solwezi Licences in Zambia. This option agreement is a part of an ongoing strategic alliance with Kam Chuen Resource Holdings Ltd. Kam Chuen holds an exclusive prospecting license portfolio of over 150 exploration permits covering over 100,000 km(2) in five African countries. As a result of this Strategic Alliance, Kam Chuen has agreed to provide Midnight Sun with full access to its portfolio, as well as first right of refusal regarding the optioning of any of Kam Chuen's exploration permits. In exchange, Midnight Sun has agreed to offer Kam Chuen technical expertise in the management and selection of properties.
ON BEHALF OF THE BOARD
Robert Sibthorpe B.Sc.(Geology), M.B.A., President & CEO
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 NEWS RELEASE.
This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, 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 the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, changes in market conditions, unsuccessful exploration results, changes in the price of gold, unanticipated changes in key management personnel and general economic conditions. Mining exploration and development is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Al Fabbro
Director
604-351-8850
