Kapuskasing Gold Expands Kings Court Copper/Cobalt Project in Newfoundland & Labrador

Vancouver, British Columbia (FSCwire) - Kapuskasing Gold Corp. (TSX-V: KAP) (the “Company” or “KAP”) announces that the Company has executed and finalized, subject to TSX Venture Exchange approval, the asset purchase agreement for a 100% interest in the Jumbo Copper/Cobalt Property consisting of 76 claims (1900 hectares) contiguous to the recently announced Kings Court Property (see press release dated March 1, 2017).  The Kings Court Copper/Cobalt property is now 2,275 hectares in size and covers at least 10 known copper showings at surface, along with historic drilling, trenching and adits. 

Kings Court: Significant exploration highlights of the property now includes the Jumbo showing where channel samples assayed 14% Cu over 3.0 m and 9.3% Cu over 10.0 m as well as a cobalt sample of up to 0.24%.  As reported March 1, 2017, additional channel samples of 19% Cu over 2.13 metres and 15.87% Cu over 2.59 metres have been reported on the property, as well as a drill hole with 12.6% Cu over 1.52 metres and a chip sampling of 7.75% Cu over 2 metres.  Compilation on the project continues.

The Company has retrieved some historic drill core from exploration carried out in 2006 by Playfair Mining.  A 4.79 metre section of drill core has been quarter split and sent in for multi element re-assaying which shall include cobalt.

The Company can purchase a 100% interest in the Jumbo Copper/Cobalt Property for total consideration of 650,000 shares, and a $3,000 one time cash payment. The Vendor shall retain a 2% net smelter royalty (NSR) interest. The Company retains the option to buy back 1% of the NSR for $1,000,000. The vendors (which are all arm’s length) include Nigel Lewis, Aubrey Budgell, Leonard Lewis, Evan Budgell and Nehemiah Pinsent.  No finders fees, or any other associated fees were incurred in this transaction.

Kapuskasing Gold Corp. also announces a non-brokered financing of up to 10,000,000 units of the Company at a price of $0.05 per unit for gross proceeds of up to $500,000.  Each unit will consist of one common share in the capital of the Company and one common share purchase warrant. Each purchase warrant will be exercisable into one common share at $0.10 for a period of 24 months from the closing of the financing. The Company is also arranging a non-brokered private placement of up to 4,166,666 flow-through ("FT") units of the Company at a price of $0.06 per unit for gross proceeds of $250,000. Each FT unit will consist of one common share issued on a flow-through basis within the meaning of the Income Tax Act (Canada) and one half share purchase warrant, each whole warrant exercisable at $0.10 into one common share of the Company for a period of 24 months from the closing of the financing.

It is currently anticipated that certain principals and insiders of the Company may participate in the Offering.

Mr. Garry Clark P.Geo,(Exploration Manager and a director of the Company) a Qualified Person ("QP") as defined by National Instrument 43-101, has reviewed the technical content of this release.  The content of the geological data presented has been derived from the Provinces Mineral Deposit Database and exploration assessment files and are believed to be accurate and correct.

On behalf of the Board of Directors

Kapuskasing Gold Corp.

Jonathan Armes
President & CEO
Phone 1 (416) 708-0243

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 press release. 

This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities laws and regulations, including statements regarding the future activities of the Company.  Forward looking statements reflect the current beliefs and expectations of management and are identified by the use of words including “will”, “anticipates”, “expected to”, “plans”, “planned” and other similar words.  Actual results may differ significantly.  The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Company’s management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com .  Investors are cautioned not to place undue reliance upon forward-looking statements. 

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