Vancouver, British Columbia--(Newsfile Corp. - June 25, 2020) - Tower Resources Ltd. (TSXV: TWR) ("Tower" or the "Company") is pleased to announce that the non-brokered private placement announced on May 25, 2020 (the "Offering") has now closed. Under the Offering, the Company issued 8,367,732 units (each a "Unit") at a price of $0.06 per Unit for gross proceeds of $502,064. Each Unit was comprised of (1) common share in the capital of the Company (each a "Common Share") and one (1) transferable Common Share purchase warrant (each a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at price of $0.10 per Common Share until June 24, 2022.
The Company intends to use the net proceeds from the Offering to explore the mineralized zones from its recent reverse circulation and diamond drill program on its Nechako property, see the Company's press release of May 6, 2020, and for general working capital purposes.
Joe Dhami, President and CEO commented: "The Nechako region has been invigorated by the recent asset purchase agreement by Artemis Gold Inc. to acquire the Blackwater gold project from New Gold Inc. This 8.2-million-ounce Au and 60.8-million-ounce Ag deposit with federal and provincial environmental assessment approvals in place has increased the visibility of Tower's recent discovery and upcoming drill program."
The Company is assessing proposals for cutting a grid for 1.3 km along the April Trend (detailed in Tower's press release of May 6, 2020) and performing detailed Induced Polarization (IP) and magnetic surveys on this grid to determine the geophysical response of the Discovery Zone and develop additional drill targets. The work is expected to commence shortly. Immediately upon its completion, the RC drill that pinpointed the Discovery Zone prior to diamond drilling will be employed for about five days to drill 10-15 short holes along strike from the Discovery Zone and on the geophysical anomalies, followed by up to 2000 m of focused diamond drilling to extend the Discovery Zone and probe any fertile new targets.
All securities issued under the Offering, including securities issuable on exercise thereof, are subject to a hold period expiring October 25, 2020.
In connection with the Offering, the Company paid a total of $8,260.00 in cash to eligible finders who introduced subscribers to the Offering.
National Instrument 43-101 Disclosure
The technical content of this news release has been reviewed and approved by Mr. Stuart Averill, Chairman of ODM, a Director of the Company and a Qualified Person as defined by National Instrument 43-101.
About Tower Resources
Tower is a Canadian based mineral exploration company focused on the discovery and advancement of economic mineral projects in the Americas. The Company's key exploration assets are the Rabbit North copper-gold porphyry project located between the New Afton and Highland Valley Copper mines, the Nechako gold project near New Gold's Blackwater project and the More Creek gold project in the Golden Triangle area of Northern British Columbia.
On behalf of the Board of Directors
Tower Resources Ltd.
Joe Dhami, President and CEO
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