Artha Resources Corporation (TSX.V -AHC) (the "Company") announces that it has arranged a non-brokered private placement of up to 24,000,000 units at a price of $0.05 per unit for gross proceeds of up to $1,200,000.
Each unit will consist of one common share of the Company and one common share purchase warrant. Each whole warrant will be exercisable into one common share of the Company for a period of 24 months from the closing of the offering at an exercise price of $0.07 per share in the first year and $0.25 per share in the second year.
The net proceeds from the offering are intended to be used to fund phase one reconnaissance drilling activities at the Company's Pirquitas properties in the Province of Jujuy, Argentina and for general working capital purposes. The proposed work program is expected to cost $1,000,000 and consists of follow-up detailed mapping at key prospects to refine and extend the current drill targets, minor infrastructure and access development for drilling and up to 1,500 meters of diamond drilling. The main area of exploration will focus on the Noeilla Breccia and the Pirquitas NW Prospects. Noeilla Breccia is located approximately 2500 metres from Silver Standard's recent high grade drilling intersections at the Cortaderas Breccia Project. The Company's recent acquisition of the Community Agreement and exploration permits allow for the commencement of the work program immediately following the closing of the Offering.
Exploration completed by Artha suggests the Noeilia Breccia target is an extension of the same structure that hosts Silver Standard's main Pirquitas deposit and the Cortaderas Breccia Project. Recent drilling on this project produced a significant discovery including 78 meters at 756 g/t silver and 9.8% zinc and 24 meters at 1,764 g/t silver and 4.9% zinc.
"The prospect of drilling the Pirquitas properties is very exciting for management and our shareholders," says Artha's CEO Charles Straw. "Given the geology of the project, and proximity to Silver Standard's operations, there is tremendous potential for a discovery."
Artha was founded by a team of mining industry professionals with a proven track record in project generation, exploration, mining and finance. The team's primary goal is to build Artha into a world class mining company, focused on the discovery, development and mining of economic minerals deposits globally.
On Behalf of the Board of Directors,
For Information Contact:
Tel: 604 689 2881
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 press release.
This press release contains forward-looking information within the meaning of the British Columbia Securities Act relating to the Company's expectations, intentions, plans and beliefs. Forward-looking statements include statements regarding the Company's exploration, development and drilling of the Pirquitas properties. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different from any future result expressed or implied by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to, risks inherent in mineral exploration and development including environmental hazards, unusual or unexpected geological formations; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the Company's inability to obtain the required licences, permits and regulatory approvals required for the exploration and development of the Pirquitas properties; uncertain political and economic environments; changes in laws or policies; completion for capital and skilled workers; and changes in commodity prices and exchange rates. The Company does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.