Victory Battery Metals Corp (CSE:VR, OTC:VRCFF) said it has staked 953 hectares, expanding its Tahlo Lake Property in British Columbia's prolific Babine Copper-Gold Porphyry District to 1,688 hectares, and has also closed the third tranche of its recent private placement.
"Our Geology team has expanded and staked additional ground on our Tahlo Lake property, following more analysis on this area, including promising historical findings within the Babine copper-gold porphyry district," said Mark Ireton, Victory's president in a statement. "With this expanded ground, our team is working to develop an exploration plan to advance the Tahlo Lake property."
The Tahlo Lake Property lies 8 kilometres (km) northwest (NW) of American Eagle Gold's (AE) NAK Property and 16 km NW of the Morrison Deposit. It is adjacent to the same NNW (North-Northwest) trending fault as the Morrison deposit and underlain by Jurassic Hazelton Group rocks. Babine porphyry deposits, such as NAK, Morrison, Bell and Granisle, are hosted by Jurassic strata and associated with major NNW trending faults.
READ: Victory Battery Metals acquires new property in James Bay Lithium District adjacent to Patriot Battery Metals Corvette property
The property overlies a significant NNW trending magnetometer high within the Hazelton Group rocks. Porphyry Cu-Au mineralization in the Babine camp is often associated with mag highs. A regional geochemical survey silt sample in the center of the property returned over the 96th percentile for copper (Cu) and over the 98th percentile for zinc (Zn). Surrounding RGS samples form a cluster of elevated Cu and Zn values.
Noranda reported a linear soil anomaly approximately 50 metre (m) x 500m, trending NNW, with Cu values ranging from 60 to 720 parts per million (ppm) Cu to the southwest of the area drained by the highly anomalous silt sample site. Noranda never followed up on the anomaly and no work has been reported since.
A regional till sample taken about half a kilometer east of the soil anomaly returned elevated Cu and highly anomalous Zn (more than 98th percentile). A till sample about 2 km down ice from this site on the returned over the 95th percentile for gold (Au). Another till sample on the newly staked property returned 49 ppb Au, which is over the 98th percentile for the region.
Third tranche of private placement closed
In a separate statement, Victory Battery Metals said it has closed the third tranche of its non-brokered unit private placement with subscriptions for 8,607,500 units at 8 cents per unit for gross proceeds of $688,600.
In the first tranche, the company raised proceeds of $448,000 through the sale of 5.6 million units. In the second tranche, the company accepted subscriptions for 4.55 million units for gross proceeds of $364,000.
The company said it intends to use the net proceeds of the financing for working capital requirements and other general corporate purposes.
Under the terms of the financing, each unit is offered at a subscription price of 8 cents per unit. Each unit consists of one common share and one common share purchase warrant exercisable at 12 cents for a two-year period, subject to the right of the company to accelerate expiry upon 30 days of notice if the common shares trade at 17 cents or higher for a period of 10 days, including days where there is no trading.
The company said it paid finder's fees on the third tranche to a qualified finder of $2,560 and issued 32,000 broker warrants, which are on the same terms as the warrants forming part of the units.
Victory Battery Metals is a publicly traded diversified investment corporation with mineral interests in North America. The company is also actively seeking other exploration opportunities.
-- Adds Tahlo Lake expansion statement --
Contact the author at jon.hopkins@proactiveinvestors.com