Vancouver, British Columbia - Bell Copper Corporation ("Bell" or the "Company") (TSX-V: BCU) announces that it has closed the first tranche of its $0.05 private placement financing announced in their June 12, 2015 news release. Under the closing, and subject to regulatory approval, the Company will issue 200,000 units at a price of five cents ($0.05) per unit for gross proceeds of $10,000. Each unit consists of one common share and one-half common share purchase warrant (the "Unit Warrants") with each full Unit Warrant entitling the holder to acquire one additional common share at a price of 10 cents ($0.10) per share for six months from closing. The Unit Warrants are, upon expiry of the statutory four month hold period after issuance, subject to the right of the company to accelerate the exercise period for the Unit Warrants if the common shares of the company trade above 15 cents ($0.15) for a period of 10 consecutive trading days. The proceeds of the private placement will be allocated toward the drilling program at the Company's Kabba, Arizona porphyry project as well as for general working capital purposes.
The Company further announces that, subject to regulatory approval, it will be settling $35,417.76 of debt arising from various services provided by issuing 708,355 common shares of the Company at a deemed price of $0.05 per share and $207,187.07 of debt by issuing 4,143,741 units at a deemed price of $0.05 per unit (the "Units"), with each Unit consisting of 1 common share and a half share purchase warrant, each full warrant being exercisable for an additional common share of the Company at a price of $0.10 per share for 6 months from the date of issue.
There will be a 4 month statutory hold on all securities issued pursuant to this financing and on all securities issued as settlement for debt.
The Company's Kabba porphyry copper-molybdenum project lies between Freeport's Bagdad mine and Origin Mining's Mineral Park mine in northwestern Arizona, a state that has produced ten percent of the world's copper. The Kabba porphyry system has been intersected in drillholes K-8, K-9, and K-10 and was predicted to be present beneath gravel-covered hills based on a fault model linking it with an outcropping porphyry root zone 8 kilometers to the west. Drillholes K-8 and K-9/K-10 bracket the 1.7-kilometer width of the target porphyry. A key drillhole, K-11, will test the midpoint between the other holes in an area of previously identified electrical geophysical anomalies.
Electrical geophysical surveys conducted in 2010 and 2014 detected anomalous natural and induced electrical potentials typical of abundant pyrite in the subsurface across a 600-meter-wide zone between drillholes K-8 and K-9/K-10. The anomalous zone is believed to demark the eastern pyritic halo surrounding the Kabba porphyry target. A predicted copper-rich shell is expected to lie adjacent to this anomaly and extend westward back toward drillholes K-9 and K-10 where sparse disseminated chalcopyrite and bornite were found accompanied by thin quartz-molybdenite veinlets in an altered diatreme breccia and porphyry dike swarm.
The Company believes that any copper-rich shell in this location would lie under 200-400 meters of gravel cover. Leached capping as much as 200 meters thick has been encountered in the Company's previous drilling at Kabba, suggesting that if a copper shell is discovered, it is likely to be overlain by a supergene blanket of enriched copper.
Age dating of molybdenite from Kabba drillhole K-10 by Dr. Holly Stein at Colorado State University using the Re/Os method shows it to be Laramide in age, the period of time when most of Arizona's large copper deposits formed. A second molybdenite sample collected from the surface of the outcropping root zone area was also determined to be Laramide in age, but nearly 8 million years younger than the K-10 sample. The lengthy 8-million-year duration of molybdenite mineralization in the Kabba district is in accordance with the large size of the target, and is typical of some of the world's biggest porphyry copper deposits where ore-forming processes operated over millions of years.
The technical content of this release has been reviewed and approved by Timothy Marsh, PhD, PEng., the Company's CEO and President. No mineral resource has yet been identified on the Kabba Project. There is no certainty that the present exploration effort will result in the identification of a mineral resource or that any mineral resource that might be discovered will prove to be economically recoverable.
"Bell's drilling efforts at Kabba since 2007 to locate the displaced hangingwall of this large porphyry system have reached a crucial point. We expect that Hole K-11, which is currently being drilled, will tell us whether the geologic processes that produced the encouraging mineralization and alteration seen in the previous drilling were sufficiently intense and effective in the heart of the system to produce ore-grade material. Any success in this endeavor will fall fully into the hands of our shareholders."
On behalf of the Board of Directors of
Bell Copper Corporation
Timothy Marsh, President, CEO & Director
For further information please contact the Company
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