Vancouver, British Columbia--(Newsfile Corp. - February 8, 2018) - Sego Resources Inc. (TSXV: SGZ) ("Sego" or "the Company") is pleased to announce that it will be mobilizing a crew in preparation for the 2018 diamond drill program at the Miner Mountain Project located 15 kilometres from the Copper Mountain Mine near Princeton, BC.
In light of the successful diamond drilling in 2017 (21 metres of 1.17% Copper, 0.30 g/t Gold and 4 g/t Silver, and 105 metres of 0.31% Copper, 0.08 g/t Gold and 2.29 g/t Silver. See January 3, 2018 News Release) and after a full data review by Sego's technical team, drill sites have been chosen for the next stage of drilling. Diamond drilling is being planned for Q-1 of 2018 and a crew will be mobilized to lay out the new drill sites. The next phase of drilling will be to extend the drilling on section with diamond drill holes 29 and 30 with the goal of developing a resource along the south flank of the Cuba Zone. The Cuba Zone is a large IP anomaly with a surface expression of 1,000 metres by 200 metres.
Sego Resources Miner Mountain project has the benefit of deep IP, airborne magnetic and LIDAR surveys, percussion drilling, and diamond drilling.
In addition to the Cuba Zone, there are also numerous other IP and Mag targets on the Miner Mountain Project. Upon reviewing available survey results, former Teck Resources Ltd. Chief Geophysicist Jules Lajoie, Ph.D., P.Eng., FEC, concluded:
"The map displays numerous magnetic anomalies, highs and lows, and along with strong evidence of structural disturbance (faulting), it shows a setting permissive for multiple intrusions and clustering of alkalic Cu-Au deposits." (Full report is available on Sego's website)
A total of 7 additional targets can be seen on Dr. Lajoie's map below:
Miner Mountain Property Map
Cannot view this image of the Miner Mountain Property Map? Please visit [http://orders.newsfilecorp.com/files/1056/32702_a1518108236750_37.jpg] to view this image
Sego Resources Inc. is also proposing to raise up to $300,000 by way of a non-brokered private placement of units at $0.05 per unit. The offering is open to all existing Sego shareholders and non-shareholders subject to certain limitations discussed below.
The offering will consist of 6,000,000 units at $0.05 per unit for gross proceeds of $300,000. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share at $0.15 for two years from closing of the private placement.
The offering is open to all existing shareholders of the Company and all interested investors provided that a prospectus exemption is available for the Company to issue units to such investors. For existing shareholders who as of the close of business on February 8, 2018 held common shares of the Company and continue to hold common shares at the time of closing, an additional prospectus exemption is available pursuant to British Columbia Instrument 45-534 (and in similar instruments in other Provinces of Canada). Unless such shareholder is a person that has obtained advice regarding the suitability of the investment and, if such shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in such jurisdiction, the aggregate subscription cost to such shareholder for the units subscribed under the Existing Shareholder Exemption cannot exceed $15,000 or 300,000 units.
The Company also plans to utilize British Columbia Instrument 45-536 which opens private placements to non-accredited investors provided the purchaser has obtained advice regarding the suitability of the investment and that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. Completion of the private placement is subject to the Tsx Venture Exchange approval.
There is no minimum offering size for the private placement and the maximum number of units proposed to be issued is 6,000,000 units for gross proceeds of $300,000. The Company intends to use up to $200,000 for diamond drilling on the Miner Mountain Project, near Princeton, BC, and up to $100,000 for working capital. The Company fully expects to spend the funds as stated; there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary. Finders' fees may be paid in relation to the financing on terms acceptable to the appropriate regulatory bodies.
There is no material change about the issuer that has not been generally disclosed.
This News Release was reviewed and approved by Selina Tribe, Ph.D., P.Geo., a Qualified Person under NI 43-101. Sego is 100% owner of the Miner Mountain Project, an alkalic copper-gold porphyry exploration project near Princeton, British Columbia. The property is 2,056 hectares in size and located 15 kilometres north of the Copper Mountain Mine operated by Copper Mountain Mining Corporation and Mitsubishi Materials Corporation. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band, on whose Traditional Territory the Miner Mountain Project is situated.
By order of the Board:
"J. Paul Stevenson"
J. Paul Stevenson
Chief Executive Officer
For investor & shareholder information, please contact:
MarketSmart Communications Inc.
Toll free: 1-877- 261-4466
Email: [email protected]
For corporate inquiries, please contact:
J. Paul Stevenson, CEO
Ph: +1 (604) 682-2933
Toll free: 1-866-683-2933
Email: [email protected]
Please visit Sego Resources' new corporate website at www.segoresources.com.
Neither the 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. No regulatory authority has approved or disapproved the information contained in this news release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.