Toronto, ON / ACCESSWIRE – November 5, 2021 – Tashota Resources Inc. (the “Company” or “TRI”) is pleased to announce that it has closed a $1.3 million Flow-Through Donation Financing (“FTDF”) transaction with the assistance of Oberon Capital Corporation (“Oberon”). Oberon arranged for the purchase of 5.2 million flow-through share units at $.25 per share to accredited investors, who instantly donated them to a registered charitable organization[s]. To immediately monetize the donation on behalf of the charities, Oberon arranged for the shares to be purchased at a discount (approximately 20%) by Crescat Capital LLC (“Crescat”), a current TRI shareholder. The flow-through share units are comprised of one common flow-through share plus one common share warrant at a strike price of $.35 per share and these expire three years from the closing date.
As a result of this CRA-approved structured transaction, Crescat now holds 16.2 million common shares (representing a 17.8% interest in the Company) plus an equal number of common share warrants; the accredited investors receive tax benefits associated with the flow-through shares as well as from making the donation; and TRI received the capital it requires to advance its exploration programs in the Hemlo and Shebandowan Gold Camps.
TRI has just completed one 1,400 metre exploratory diamond drillhole of an initial two drill program on its Hemlo West property and is waiting for drill results from Activation Laboratories Ltd. (Actlabs), which may take several weeks due to backlogs. TRI’s Hemlo West property is adjacent to Barrick Gold’s Hemlo property, just 2,500 metres from the world-class Williams Mine. Hemlo West is also a mere 1,200 metres from Barrick’s own drilling activities in its promising “E-Zone”, which is situated along shear zones that head directly into Hemlo West.
The Hemlo Gold Camp has produced some 22 million oz Au over the past 30+ years and continues to produce. Indeed, Barrick produced 223,000 oz. Au and is projecting to produce between 200,000 and 220,000 oz Au in 2021 (according to Barrick’s website). Moreover, Barrick has extended the projected life of the mine past 2030 based on its multi-million oz Au NI 43-101 resource estimates. TRI will be releasing results from its drill program as soon as they are available.
While waiting for the initial results from Actlabs, the drill rig has been moved to TRI's 50% owned 5,000+ acre Echo Ridge property in the Shebandowan Greenstone Belt, 110 km west of Thunder Bay and has initiated a six drill hole program. This drill program is a follow up to the summer drill program at Echo ridge which produced encouraging results. Shebandowan is another historic gold producing site and it hosts Goldshore Resource Inc.’s Moss Lake property, which has 1.47 M oz of Indicated and 2.51 M oz of Inferred historical gold resources (according to Goldshore’s website).
Charles Elbourne, Director, President and CEO of TRI said, “We are grateful to Oberon for facilitating this transaction and excited that Crescat has extended its share position in the Company, which we interpret as a sign of continued confidence in our properties, operational plans, management and advisory team, which includes Quinton Hennigh, PhD, Crescat’s Geologic and Technical Director. We are also very pleased to have had a role in a well-deserving organization[s] receiving a substantial donation to further its excellent charitable activities.”
Kevin Smith, Crescat’s founder and Chief Investment Officer, commented that, “We are excited to be able to acquire additional shares of TRI while at the same being able to provide significant funding to a worthwhile charitable organization. We are also pleased that this transaction will enable TRI to further its exploration activities in the highly prolific Hemlo Gold Camp. We invested in TRI and its related company, Trojan Gold Inc., in part because of their large and strategically located land holdings in Hemlo, the Shebandowan Greenstone Belt and the Beardmore-Geraldton Gold Camp. Our current investment is also quite timely given that TRI has commenced its deep drill program at Hemlo.”
David J. LeClaire, CD, MBA, Partner, President & Founder of Oberon Capital Corporation remarked that, “this was a win for all parties involved. Certainly our investors will enjoy CRA-compliant tax benefits, but perhaps more important is that, through our efforts, a very worthy charitable organization was able to raise substantial funding to further their highly laudable activities. We are also pleased that this transaction will provide funding for Tashota Resources’ exploration activities in Northern Ontario, generating important economic benefits to the region in the process.”
About Crescat Capital LLC
Crescat is a global macro asset management firm founded in 1994 by Kevin Smith, CFA, headquartered in Denver, Colorado. Crescat's mission is to grow and protect wealth over the long term by deploying tactical investment themes based on proprietary value-driven equity and macro models. Crescat's goal is industry-leading absolute and risk-adjusted returns over complete business cycles with low correlation to standard benchmarks. The Company's investment process involves a mix of asset classes and strategies to assist with each client's unique needs and objectives and includes Global Macro, Long/Short, Large Cap and Precious Metals funds. Crescat relies on its Geologic and Technical Advisor, Dr. Quinton Hennigh on investments in gold and silver resource companies. Dr. Hennigh obtained his Ph.D. in Geology/Geochemistry from the Colorado School of Mines and has more than 30 years of exploration experience with major gold mining firms.
About Tashota Resources Inc.
Tashota Resources Inc. (“TRI”) is a Prospect Generator junior resource Exploration Company currently focused on defining and monetizing the mineral deposits on its multiple properties that cover nearly 45,000 acres in historically prolific gold camps in Northern Ontario. TRI has a stellar management and advisory team with significant exploration, engineering, project financing and permitting experience, including decades-long experience in prospecting and mining operations in the Hemlo, Shebandowan, and Beardmore-Geraldton Gold Camps where TRI has significant property interests.
About Oberon Capital Corporation
Oberon is a market leader in arranging Flow Through Donation Financings (“FTDF”) having structured over $800 million in 180 financings with over 100 issuers. Oberon works with the brokerage community to arrange for the subscription, donation and sale of flow through shares to institutional investors globally.
Flow Through Donation Financing has grown from an alternative source of exploration and development capital to an important and material source of capital for companies at the forefront of discovery and development that supports the long-term economic health of Canada’s resource industry.
ON BEHALF OF THE BOARD,
Charles J. Elbourne, President & CEO
For further information, please contact:
Charles J. Elbourne, President & CEO
Tashota Resources Inc.
82 Richmond St. East, Suite 401
Toronto, Ontario M5C 1P1
Telephone: 416-315-6490
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.tashotaresources.com
Cautionary Note Regarding Forward-Looking Statements and Information
This release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the impact and implications of drill results of the Company; the timing and amount of estimated future exploration and success of such exploration activities; and the anticipated results of the Company’s plan to develop and implement a drill program on the Hemlo West project; the Company’s planned expansion of the Hemlo West project. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “schedule”, “estimates”, “forecasts”, “intends”, “continue”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are made based upon certain assumptions and other important facts that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, currency fluctuations, the global economic climate, dilution, share price volatility and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact the COVID 19 pandemic may have on the Company’s activities and the economy in general; the impact of the recovery post COVID 19 pandemic and its impact on precious metals; there being no assurance that the exploration program will result in expanded mineral resources; risks and uncertainties inherent to any mineral resource estimates; receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future gold and other metal prices; accidents, labour disputes and shortages; environmental and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
In presenting this information, Tashota Resources Inc. is not making an offer to sell nor soliciting an offer to buy any securities, certifying the completeness or accuracy of this information, or assuming that the recipient is qualified to consider this opportunity. Accordingly, this document does not and is not intended to comply in any manner with any United States or Canadian securities or disclosure laws or requirements. Prior to making or soliciting any such offer, the Company will provide access to such information and will comply with the requirements of applicable securities laws.
