Calgary, Alberta–(Newsfile Corp. – August 17, 2020) – Teras Resources Inc. (TSXV: TRA) (“Teras” or the “Company”): announces that it has increased the size of its previously announced non-brokered private placement of units (each a “Unit”). In addition, Teras announces that it has completed the closing of the private placement of Units, subject to final approval of the TSX Venture Exchange. Teras issued 21,248,700 units at a price of $0.05 per Unit for gross proceeds of $1,062,435. Each Unit consists of one common share (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant is exercisable into one Common Share at a price of $0.075 per share for a period of two years from the issuance of such Warrant. In addition, Teras issued 191,000 B warrants at a price of $0.075 for a period of one year and paid a finder’s fee of $4,550.00.
The CEO of Teras has participated in the private placement with the purchase of 648,700 Units.
The majority of the proceeds will be used to refine the large database of information Teras has accumulated over the years. The results of the improved database will be the basis for reevaluating the resource model. Teras will provide an update to its shareholders on the positive advancements it has made over the past few months in the near future.
Teras is focused on developing its Cahuilla project located in Imperial County, California. The project encompasses an area of at least 3 km by 1.5 km and Teras believes that the Cahuilla project has the potential to develop into a mining operation consisting of altered and mineralized sedimentary host rocks with numerous sheeted high-grade sheeted quartz veins. Teras filed a NI 43-101 technical report with an indicated resource of 1.0 million ounces of gold and 11.9 million ounces of silver on its Cahuilla project (70 million tons at an average grade of 0.015 ounces per ton gold and 0.17 ounces per ton silver with a cut-off of 0.008 ounces per ton gold) and inferred class of 10 million tons grading 0.011 opt gold and 0.10 opt silver. Gold equivalent ounces are 1.2 million ounces in indicated class and 130,000 ounces in inferred class using a ratio of 55 silver ounces to 1 gold ounce. For further information on the Cahuilla project refer to the NI 43-101 technical report entitled “Cahuilla Property 43-101 Technical Report,” filed with Sedar on November 27, 2012.
Dr. Dennis LaPoint, a qualified person under National Instrument 43-101 “Standards of Disclosure for Mineral Projects,” and a Director for Teras is the Company’s nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company’s properties. Dr. LaPoint has reviewed and verified the mining, scientific and technical information contained in this news release. Dr. LaPoint is a registered geologist with the Society of Mining Engineers.