Pitchstone Closes Financing and Begins Athabasca Drilling
July 28 2011 - 8:00AM
Marketwired
Pitchstone Exploration Ltd. (TSX VENTURE: PXP) -
-- Private Placement Raises $750,000
-- 2,300 Meter Drilling Program Begins at Gumboot
Pitchstone Exploration Ltd. ("Pitchstone" or the "Company") has
completed the previously announced non-brokered private placement
and has begun uranium exploration drilling to follow up
mineralization intersected in the Athabasca Basin.
Financing Closes
Pitchstone has issued 5,357,000 units at $0.14 per unit to raise
gross proceeds of approximately $750,000. Each unit consists of a
common share plus one-half of a non-transferable share purchase
warrant. Each whole warrant enables the holder to purchase one
additional common share at a price of $0.25 for a period of
eighteen months. A cash finder's fee of $27,989 plus an aggregate
of 199,990 finder's warrants have been issued to Global Market
Development LLC in connection with part of the private placement.
All securities issued in the private placement will be subject to a
hold period expiring on November 28, 2011.
Pitchstone's cash position is now approximately $2.65 million
and the Company has 45.21 million common shares outstanding after
the closing.
Athabasca Drilling Begins
Core drilling has begun on the 100% owned Gumboot property in
the eastern Athabasca Basin. Approximately 2,300 meters will be
completed at Gumboot over the next month. Targets will be
extensions of the mineralization and alteration drilled previously.
The first drill hole will be a step out along strike from GB11-23
which intersected 1.47% U3O8 and 2.45% Ni over 0.1 meters, within a
much longer interval of moderate to intense hydrothermal alteration
(see March 21, 2011 news release).
After the Gumboot program, the drill will be moved to the
Wolverine property for an additional 2,000 meter drilling program
to follow up on mineralization drilled in 2010 (see August 18, 2010
news release). Wolverine was optioned to Japan Oil, Gas and Metals
National Corporation ("JOGMEC") in 2009. All exploration on
Wolverine is being funded by JOGMEC.
About Pitchstone
Pitchstone is exploring for uranium in three proven districts in
Canada and Namibia. The property portfolio features 12 projects in
the eastern Athabasca Basin, Saskatchewan, four of which are 100%
owned. In addition, there is a joint venture on two projects in
Namibia and several joint venture projects in the Hornby Bay Basin,
Nunavut. Pitchstone benefits from the collaboration of a unique
group of geologists with extensive uranium exploration and
production experience.
Steven J. Blower, P.Geo., President and CEO of Pitchstone, is
the Qualified Person for the purposes of NI 43-101 with respect to
the technical information in this news release. Sample preparation
and analyses were done by SRC Geoanalytical Laboratories,
Saskatoon. A partial digestion with fluorimetric analysis was used
for initial uranium determinations, and then all samples containing
greater than 100 ppm uranium were re-analyzed with ICP. Pitchstone
utilizes internally and externally submitted standard reference
materials for quality assurance and quality control of the sample
preparation and analyses. There is insufficient information to
estimate the true thickness of the intersections.
On behalf of the Board,
Steven J. Blower, President and CEO
This news release may contain assumptions, estimates, and other
forward-looking statements regarding future events. Such
forward-looking statements involve inherent risks and uncertainties
and are subject to factors, many of which are beyond Pitchstone's
control, that may cause actual results or performance to differ
materially from those currently anticipated in such statements.
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.
Contacts: Pitchstone Exploration Ltd. Claire Stewart 604 630
5563 Pitchstone Exploration Ltd. Mark T. Brown CFO 604 687 3520
www.pitchstone.net
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