VANCOUVER, BC, March 31, 2021 /CNW/ - Cache Exploration Inc. (the "Company" or "Cache") (TSXV: CAY; U.S. OTC: CEXPF) is pleased to announce that the Company has entered into an agreement for a financing facility with Alumina Partners (Ontario) Ltd. ("Alumina"). The Investment Agreement will provide the Company with up to C$6.0 million over a 24-month period to finance its working capital needs.
Jack Bal, CEO of Cache, stated, "We will work with Alumina Partners to help us to finance the advancement of our exploration projects, Kiyuk Lake and Marmot. This facility will give us confidence of financing as we move forward on our work programs."
"We are excited to support Cache as they prepare to accelerate their exploration programs," said Adi Nahmani, Managing Member of Alumina. "We continue to believe that the combination of a benign interest rate environment and prodigious economic stimulus spending by major industrialized nations will contribute to a favorable near-term outlook for counter-inflationary precious metals, and look forward to getting more exposure to gold exploration with the veteran management team at Cache."
Under the financing facility (the "Investment Agreement") Cache, subject to certain customary conditions, may draw down through private placements up to CAD $6,000,000 million in tranches of up to CAD $250,000 each. Each tranche shall be a private placement of units, to be comprised on one common share ("Common Share") and one Common Share purchase warrant ("Warrant"). The Warrants may not be exercised prior to the date, which is four months and one day from their date of issuance.Each full Warrant will entitle the holder to purchase one Common Share of the Company at a price of 25% over the market price and will have a term of three years.
There are no standby charges or other upfront fees associated with the Investment Agreement. Each tranche of Units issued under the Investment Agreement will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary 4-month hold period.
About Cache Exploration
Cache is a gold focused Company that holds and operates the Kiyuk Lake Property which covers 590km2 in SW Nunavut: the project features a number of gold bearing prospects including 2017 identification of 8m of 26.4 g/t gold at the Rusty Zone and extensive mineralization at East Gold Point with 64 m at 1.5 g/t gold and 10 m at 6.5 g/t gold. Extensive surficial float evidence indicates a series of high-interest gold systems (see www.cacheexploration.com/CAY-NR-10-26-17 to view plan maps of Rusty Zone and East Gold Point, section showing select KI17-004 and -005 drill results and Maps of rock and till sampling results).
Drilling has discovered multiple gold intercepts over 1 g/t Au in five discrete mineralized zones Rusty, Gold Point, East Gold Point, Cobalt and Amundsen. Significant expansion possible with five new target areas identified and ready for drilling. Exploration at Kiyuk Lake takes place in winter-spring (February – May) and summer-fall (June-October).
On behalf of the Board of Directors of
CACHE EXPLORATION INC.
Jack Bal
President and Chief Executive Officer
604-306-5285
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.
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SOURCE Cache Exploration Inc.
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