GreenBank Capital Inc (CSE:GBC) OTCMKTS:GRNBF) (FRA:2TL), a next-generation merchant banking business, has announced that portfolio company Ubique Minerals Ltd (CSE:UBQ) (Ubique Minerals Ltd (CSE:UBQ)) has arranged a contract to allow diamond drilling at its Daniel’s Harbour zinc project in Newfoundland.
Greenbank said Ubique also plans a private placement financing and has appointed Vilhjalmur Thor Vilhjalmsson as a board director and interim CEO, replacing Dr Gerald Harper who will continue as a director and qualified person for the company.
The zinc exploration company will undertake a non-brokered private placement of flow-through units to raise a minimum of $300,000 and hard dollar units to raise $500,000 to further its exploration and definition of zinc deposits at Daniel's Harbour and general exploration and corporate expenses.
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Ubique owns three mineral licenses located in the Daniel's Harbour area, covering more than 6 square kilometers in two blocks and has another four mineral licenses covering more than 10 square kilometers under option from Ophir Gold Corp (KAP). The Ubique licenses cover at least three zones of zinc mineralization, one of which is the P Zone where it completed most of its 2017 and 2018 drilling programs, the highlight of which was a true width intersection of 13.6% zinc over 12.2 meters (m) including 17.43% zinc over 8.6m.
There are now 28 drill holes in the target area with zinc intersections with greater than 4% zinc over at least 2 meters true widths. The KAP option licenses cover many areas of the historic mining activity and research has already identified five high priority drill target areas where historic drilling intersected zinc mineralization that was never followed up or mined, including a true width interval of 5.73m of 8.96% zinc in the 1386 zone target.
Funding for Ubique’s 2017, 2018 and 2020 diamond drilling programs was financially supported, in part, by grants from the Government of Newfoundland and Labrador under their Junior Exploration Assistance Program. Application has been made for a similar grant to support the 2021 diamond drilling program.
The total private placement of flow-through units and new common shares will represent 24.06% of the increased share capital of Ubique. It said insiders of the company have indicated their interest in participating in this private placement financing. The proceeds will be used for the follow-on drilling at Daniel's Harbour, including the adjacent KAP option property.
Vilhjalmur, the CEO of JV Capital Ltd, a family-based investment company focusing on mining exploration and civil construction companies, will become Ubique’s chairman once a permanent CEO has been identified.
“Villi brings a great depth of experience to the company, and we are looking forward to working with him so that the company can accelerate its development as a successful mineral explorer and developer,” Ubique chairman David Lonsdale said in a statement.”
“We are very grateful to Dr Harper for all his hard work to bring the company forward from its public listing to owner of a very important property with high-grade zinc resources being outlined.”
GreenBank invests in undervalued exponential growth companies focused on building consistent capital appreciation for its shareholders. The company has a flexible low-cost overhead structure designed to maximize profitability.
Its management are based in Toronto, Dallas, New York and London and are used to working across borders remotely. The company's model of remote working, dynamic space and flexible contracts - rather than expensive offices, and large fixed costs - establishes GreenBank as a global merchant bank for the future, both during and after the coronavirus (COVID19) pandemic.
Contact the author at stephen.gunnion@proactiveinvestors.com