VANCOUVER, B.C. – Trans Canada Gold Corp. (TSX-V: TTG, OTCQB-RCTRF) (“Trans Canada” or the “Company”), is pleased to provide an operational update on a one-well Farmout Agreement with Croverro Energy Ltd, of Calgary, Alberta, (“Croverro”) to drill a multi-lateral horizontal oil well. The well is in close proximity to Lloydminster, Alberta. The lands for the well are currently controlled by Croverro. Under the terms of the negotiated agreement, Trans Canada (Farmee) must pay 25% of Croverro’s share of the cost to drill, complete and fully equip or abandon the well to earn an 18.75% net working interest. Croverro (“Farmor”), will be carried for a 6.25% interest. The multi-lateral horizontal well is based on similar wells drilled in the Sparky Oil Formation. The well is planned to have over 3000 m of Sparky formation open for production. The well scheduled to be drilled in the first quarter of 2023, is currently experiencing some minor delays due to extreme cold weather experienced in December and rig availability.
Trans Canada, after successfully drilling and equipping the first multilateral horizontal well will have the first right of refusal on an Area of Mutual Interest (AMI) of approximately one mile in each direction from the test well. Additional wells within the AMI will, if the Company elects to participate, be drilled on a non-promoted basis with Trans Canada paying 18.75% to earn 18.75%. Additionally, Croverro currently has a second prospect in the AMI that is in the development stage. Also, Croverro may present additional drilling opportunities to Trans Canada, as opportunities are developed and lands/minerals are obtained in the greater Lloydminster region of Alberta and Saskatchewan.
The Well is surveyed and should be fully permitted by Croverro and approved by Alberta Energy for drilling by February 1st. Drilling completion and equipping costs are expected to be $1.7 million for the well ($425,000 net to Trans Canada). Croverro Energy Ltd. under the terms of the agreement will be Operator.
Commented Tim Coupland, “We are excited to be drilling a multi-lateral oil well with an experienced partner, who is currently producing over 500 BOPD. Croverro Energy Ltd, has an experienced oil and gas technical team and has proven oil production success with multi-lateral wells currently under their supervision and operation. We believe drilling at home in Alberta and Saskatchewan, Canada will allow the Company to prosper and remain a reliable oil & gas energy supplier, as world oil prices continue to remain high due to the lack of energy security, ongoing supply issues, shipping and pipeline issues in the United States, combined with war and geo-political conflict between Ukraine and Russia and lack of overall energy security in Europe.
$600,000 N0N-BROKERED PRIVATE PLACEMENT
The Company also announces a non-brokered private placement financing of 12,000,000 units (the “Units”) at a price of CDN $0.05 per Unit to raise gross proceeds of up to CDN $600, 000 (the “Offering”). Each Unit will consist of one (1) common share and one (1) common share purchase warrant, each warrant exercisable at a price of $0.15 per share for a period of three (3) years from the date of issuance. The Offering is subject to approval from the TSX Venture Exchange and all of the securities issued pursuant to the Offering will be subject to a four month hold period from the date of issue in accordance with applicable securities laws.
The Company has agreed to pay a finders’ fee to arm’s length parties for services rendered in respect of the Offering. The finder’s fee will consist of a cash fee equal to 6% of the gross proceeds of the Offering and finder’s warrants equal in number to 6% of the units sold under the Offering. Each finder’s warrant will entitle the holder to acquire one common share of the Company at a price of $0.15 per share for a period of three (3) years from the date of issuance.
The Company intends to use the proceeds of the Offering for any new costs associated with due diligence with respect to the acquisition of new oil exploration assets, drilling costs for the first well under the agreement with Croverro and general working capital.
In addition to other prospectus exemptions commonly relied on in private placements, the Offering will be available to existing shareholders of the Company who, as of the close of business on October 11th , 2022, held common shares of the Company (and who continue to hold such common shares as of the closing date), pursuant to the prospectus exemption set out in BC Instrument 45-534 – Exemption From Prospectus Requirement for Certain Trades to Existing Security Holders and in similar instruments in other jurisdictions in Canada (the “Existing Shareholder Exemption”). The Existing Shareholder Exemption limits a shareholder to a maximum investment of CAD$15,000 in a 12-month period unless the shareholder has obtained advice regarding the suitability of the investment and, if the shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. If the Company receives subscriptions from investors relying on the Existing Shareholder Exemption exceeding the maximum Offering, the Company may adjust the subscriptions received on a pro-rata basis.
The Company will also make the Offering available to certain subscribers pursuant to BC Instrument 45-536 – Exemption from Prospectus Requirement for Certain Distributions Through an Investment Dealer (the “Investment Dealer Exemption”). In accordance with the requirements of the Investment Dealer Exemption, the Company confirms that there is no material fact or material change about the Company that has not been generally disclosed.
TRANS CANADA GOLD PROJECT– THE DINORWIC GOLD PROPERTY
The Trans-Canada Gold Property consists of 741 non-surveyed contiguous mineral cell claims totaling 14,880 hectares located within the Kenora Mining Division of Ontario. The property is located within the Wabigoon Greenstone Belt, which also contains the Goliath Gold deposit and the Goldlund Gold Deposit. The Property contains a number of large shear zones containing quartz carbonate veins, pyrite and arsenopyrite, underlain by mafic volcanics with felsic volcanics in the south. There is a large regional scale iron carbonate alteration within the property, which is considered to be similar to that of the Red Lake Mining Camp. The regional scale Carbonate alteration within the property associated with shear zones within iron-tholeiite are prime targets for gold exploration. The property has excellent access, with the Trans-Canada highway bisecting multiple high priority targets in a north-south direction, as well as close proximity to the large community of Dryden, Ontario. The property has access to first class infrastructure, with close proximity to a number of rail corridors and power lines. A number of gold exploration targets have been identified within the property based on their association with regional alteration, known gold showings, shear zones, complex patterns and offsets in the regional magnetic map as well as spatial association with regional structures that has the potential to be well endowed with gold mineralization.
Colin Bowdidge, Ph.D., P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved of the technical information disclosed in the news release.
ABOUT TRANS CANADA GOLD CORP. – GOLD MINERAL EXPLORATION/ OIL AND GAS PRODUCTION
The Company is a discovery focused Canadian Gold and Mineral Exploration and Oil & Gas Resource Development Company that is currently focused on developing its’ District Scale Gold exploration projects in Ontario, increasing its production capabilities, and obtaining potential future oil production revenues. The Company identifies, acquires and finances the acquisition of gold exploration properties and the ongoing development of mining and oil and gas assets primarily situated in Canada, a time-honored safe mineral exploration jurisdiction. The Company is currently permitting a developing a number of District Scale gold mineral exploration property opportunities, and identifying low risk exploration opportunities through selective acquisitions and development of mining exploration assets situated in these favorable resource jurisdictions. The Company has qualified Senior exploration management and Geological Mining teams of professionals, seasoned in exploration production, field exploration and drilling. The Company has the necessary manpower in place to develop its natural resource properties and manage its production properties. The Company is committed to minimizing risk through selective property acquisitions, and responsible exploration and development of mining, and petroleum and natural gas resource assets.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO
Trans Canada Gold Corp.
Tel: (604) 681-3131
www.transcanadagold.com
Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.