Cavan Ventures to drill Buckingham, Tetepiska-East

Jan 22, 2014

CAVAN PLANS TO DRILL AT THE TETEPISKA-EAST AND BUCKINGHAM GRAPHITE PROJECTS, QUEBEC AND ANNOUNCES FINANCING

Cavan Ventures Inc. plans to perform diamond drilling programs at its 100-per-cent-owned Buckingham and Tetepiska-East graphite properties located in western and northeastern Quebec, respectively. Services de Forage DV (Jonquieres, Que.) has been engaged to carry out up to 2,400 metres of NQ core drilling on the two projects. Both programs will managed by Magnor Exploration Inc. (La Baie, Que.).

The Buckingham property includes 24 claims located in ranges VIII and IX, Buckingham township, Quebec, and covers an area of 1,682.8 hectares (4,157 acres). Buckingham is 1.7 kilometres north of the historic Walker graphite mine, which produced graphitic ore from 1876 to 1920. In July, 2013, exploration on Buckingham along a 1,000-metre-long linear electromagnetic conductor included grab and channel samples that returned assays from 0.46 per cent to 11 per cent graphite, with 21.70 per cent graphite from a second parallel conductor (see news release July 8, 2013). A helicopter-borne magnetic and time-domain electromagnetic survey confirmed the historic conductor and further resolved the second parallel conductor to a length of 300 metres (see news release Sept. 24, 3013). The company plans to drill five holes for a total of 1,200 metres to test the coincident graphite mineralization and airborne conductors.

The Tetepiska-East property includes 54 mining claims covering 2,925.72 hectares. As reported in December, 2013, rock grab samples were collected along a 4.25-metre-wide east-west-oriented graphite-enriched zone assayed at 55.1 per cent Cg. A second rock grab sample collected about 1.20 metres south of the first location returned 48.80 per cent Cg. A third rock grab sample taken three metres north-northeast of the first location assayed at 10.45 per cent Cg. A channel sample 1.9 metres in length and five centimetres wide was collected with a diamond grit saw across the mineralized zone in the western part of the exposed area and returned an average of 52.65 per cent Cg, including 63.50 per cent Cg over one metre. A second channel sample 5.6 metres in length and with similar width was collected along the northern limit of the high-grade zone and returned an average grade of 12.80 per cent Cg (see news release Dec. 19, 2013). The diamond drilling program at Tetepiska will include five to six holes totalling up to 1,200 metres, designed to test the graphitic mineralization at depth as well as its lateral extension.

The technical contents of this release were prepared and approved by Dr. C. Derosier, PGeo, independent consultant to Cavan and a qualified person as defined by National Instrument 43-101.

Additionally the company announces that it has arranged a non-brokered private placement of up to 10 million units at a price of six cents per unit for aggregate gross proceeds of $600,000. Each unit will be composed of one common share and one share purchase warrant of the company. Each warrant will entitle the holder to purchase one share for a period of 24 months from the closing date at an exercise price of 10 cents per warrant share.

The company may, in its sole discretion, pay a finder’s fee to agents of the company consisting of (i) a cash fee in an amount of 10 per cent of the proceeds raised by such finder as part of this offering and (ii) a number of finder’s warrants entitling the holder thereof to purchase that number of shares of the company that is equal to up to 10 per cent of the number of units placed through the finder as part of this offering. Each finder’s warrant will entitle the holder to purchase one share for a period of 12 months from the closing date at an exercise price of 10 cents per finder’s warrant.

The proceeds raised will be used for general corporate purposes and for advancing the company’s Tetepiska-East and Buckingham graphite projects in Quebec.

The private placement is subject to the approval of the TSX Venture Exchange.

http://www.cavanventuresinc.com/news.html