VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 19, 2011) – Dawson Gold Corp. (TSX VENTURE:DYU) has completed a 33.6 line kilometer surveyed and cut grid in advance of a Quantec Geophysics Titan-24 deep penetrating Induced Polarization (“I.P.”) ground-based geophysical survey slated to commence on August 18, 2011. In connection with the work program, Dawson has expanded the Toro exploration camp to accommodate a crew of up to 20 people. The geophysical program is designed to test the mineral potential of the Toro Property at depth and to define potentially mineralized structural targets within the 75 Ma Late Cretaceous Porphyry and the 103 Ma Mid Cretaceous Granodiorite intrusives on the Property. The Quantec Titan-24 System has proven to be a successful tool to define large porphyry systems and strongly mineralized structural trends. The program is anticipated to take 25 days to complete.
Coincident with the Quantec survey the Company intends to construct 8 km of supplementary road access and undertake a trenching/sampling program to follow-up on high-priority anomalous gold-in-soil targets defined by the 2010 Toro exploration campaign. Trenching will test mineralization demonstrated by historical results from the Ridge Zone which included 0.55 g/t Au and 106.6 g/t Ag over 30 metres in “Anomaly C” and 37.8 metres averaging 0.46 g/t Au and 26.1 g/t Ag within “Anomaly B”. The 2010 defined soil anomaly targets represent newly discovered, un-trenched targets. The required exploration equipment has been mobilized to site. A soil sampling program focused on in-fill and expansion of the 2010 gold-in-soil anomalies is currently underway and will continue into the Fall.
Private Placement
Dawson Gold announces a private placement of up to 16,666,666 units of the Company at a price of $0.06 per unit for total proceeds of up to $1,000,000. Each Unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share of the Company at a price of $0.10 per share for a period of 18 months from the closing date.
The Company will pay a finder’s fee equal to 8.0 per cent of subscription amounts found, payable in cash, or issue finder’s shares in an amount equal to 8.0 per cent of the shares subscribed for.
The proceeds from the private placement will be used to continue exploration on the Company’s Toro project in the Yukon and for general working capital purposes. The private placement is subject to approval by the TSX Venture Exchange. Dawson will not proceed with the proposed financing announced in early June.
Share Consolidation
Dawson Gold announces that it proposes to consolidate the issued and outstanding share capital of the Company such that every two existing shares will be consolidated into one new share. The Company currently has 33,919,782 issued and outstanding. Following the consolidation, it would have 16,959,891 shares issued and outstanding. The share consolidation is subject to approval by the shareholders of the Company at a special meeting of shareholders to be held on September 23, 2011, and to the acceptance of the TSX Venture Exchange.
Management believes that consolidating the Company’s issued share capital is in the best interests of the Company and would improve the ability of the Company to attract additional equity financing and assist in the acquisition of additional projects of merit.
For additional information please visit the company’s website at www.dawsongold.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Paul D. Gray, P.Geo. CEO
DAWSON GOLD CORP.
Neither 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 release.
Contact Information
Dawson Gold Corp.
Mark Komonoski
403-255-8483 or Toll-Free: 1-877-255-8483
Leave a Reply
Want to join the discussion?Feel free to contribute!