GAINEY CAPITAL SIGNS OPTION AGREEMENT WITH FIRST MINING GOLD TO ACQUIRE THE LAS MARGARITAS PROPERTY, STATE OF DURANGO, MEXICO

Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) is pleased to announce that it has entered into an option agreement with First Mining Gold Corp. (“First Mining”)  granting Gainey the right to earn a 100% interest in the Las Margaritas property located in the State of Durango, Mexico.

The property is located approximately 140 kilometres to the southeast of Mazatlan, Sinaloa and is comprised of two mineral concessions encompassing a total of 500 hectares.  As shown in the map below, the concessions lie to the north of Gainey’s El Colomo project and within El Colomo’s overall claim package.

Location of the Las Margaritas Property relative to existing exploration properties and mines.

Prior surface work on the Las Margaritas property by the Servicio Geologico Mexicano (Mexican Geological Survey) and First Mining identified a vein system extending for at least 1,500 metres along strike and averaging approximately 1 metre in width.  Numerous prospect pits occur along the structure where gambusinos (Mexican prospectors) have worked the vein for high grade gold.  With no evidence of prior drilling on the claims, the property represents a grassroots, high grade gold target, most likely of underground configuration.

Under the terms of the four year option agreement, Gainey can elect to make either annual share or cash payments to First Mining in the following amounts:

Payment Term CAD$ Aggregate Value of Gainey Common Shares (applicable Mexican VAT to be paid in cash) CAD$ Cash Payment (inclusive of applicable Mexican VAT @ 16%)
Upon approval by the TSX Venture Exchange (“TSX-V”) $75,000 in Shares N/A
($12,000 in Cash – VAT)
First anniversary date of the agreement $175,000 in Shares $174,000 in Cash
($28,000 in Cash – VAT)
Second anniversary date of the agreement $250,000 Shares $261,000 in Cash
($40,000 in Cash – VAT)
Third anniversary date of the agreement $225,000 Shares $232,000 in Cash
($36,000 in Cash – VAT)
Fourth anniversary date of the agreement $225,000 Shares $232,000 in Cash
($36,000 in Cash – VAT)

 

In addition, as per the terms of the option agreement, Gainey will make annual cash payments to First Mining of USD$25,000 from September 2018 to September 2020, and USD$250,000 in September 2021 in connection with an existing agreement on the property, and will incur exploration expenditures on the Las Margaritas property totaling USD$1,000,000 over the four year option period.  Upon completion, Gainey will obtain 100% ownership of the Las Margaritas project and First Mining will retain a 2% net smelter returns (“NSR”) royalty, with Gainey having the right to buy back 1% of the NSR royalty for USD$1,000,000 up until the first anniversary of the commencement of commercial production at the project.

David Coburn, Gainey Capital’s CEO commented, “The signing of this option agreement with First Mining Gold is the culmination of several years of discussions and negotiations regarding the Las Margaritas Property. We are now looking forward to advancing and exploring what may prove to be the most interesting portion of the El Colomo district.”

Gainey anticipates initiating preliminary exploration work on the property in early August, including mapping, sampling, drill target definition and permitting.

The transaction and the issuance of Gainey’s common shares pursuant to the option agreement is subject to acceptance by the TSX Venture Exchange.

Brian Metzenheim, the Company’s Vice President, Exploration, is the “Qualified Person” for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects and he has reviewed and approved the technical information contained in this news release.

 

ON BEHALF OF THE BOARD OF DIRECTORS

 

    “David Coburn”

David Coburn, Chief Executive Officer

 

For information, please contact the Company:

Phone: 480-347-8904

E-mail: info@gaineycapital.com

Website: www.gaineycapital.com

FORWARD LOOKING STATEMENTS: This press release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.

 

 

GAINEY CAPITAL completes upgrades at huajicori mill

Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) is pleased to announce that it has completed upgrades to its Huajicori mill and anticipates processing the mineralized bulk sample material during the coming weeks.

The upgrades at the 300 tonne per day Huajicori mill included electrical and mechanical improvements and maintenance. Major upgrades to the electrical system were completed and approved by engineers from the Comisión Federal de Electricidad (CFE), the government controlled power company.  In addition, wear parts in the grinding circuit have been inspected and replaced.  With the repairs and upgrades now complete, the mill is ready to begin processing material.

The Company is now planning to move forward with processing the bulk sample to be sourced and supplied by Grupo Wolinak S.A. de C.V., as outlined in the news release dated February 28, 2018.  Results of the bulk sample processing will be released once the testwork is finalized.

In conjunction with advancing the toll milling operations, the company continues to evaluate additional gold – silver exploration projects located in Mexico for acquisition as it moves to establish a more diversified presence.

 

ON BEHALF OF THE BOARD OF DIRECTORS

    “David Coburn”

David Coburn, Chief Executive Officer

 

For information, please contact the Company:

Phone: 480-347-8904

E-mail: info@gaineycapital.com

Website: www.gaineycapital.com

 

FORWARD LOOKING STATEMENTS: This press release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

            Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.

 

 

Gainey Capital Signs Letter of Intent with Grupo Wolinak for Bulk Sample Processing at Huajicori Mill

Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) is pleased to announce that it has signed a letter of intent (“LOI”) with Grupo Wolinak S.A. de C.V. (“Grupo Wolinak”) for the purchase and processing of a gold and silver mineralized bulk sample at the Company’s Huajicori mill.  The bulk sample will be sourced from mineralized material located on surface at a historic gold, silver district within trucking distance of the mill.  Prior work indicates grades of the bulk sample should be in the range of 2 – 2.5 g/t gold and 250 – 300 g/t silver.  Results of the test work will be utilized to determine the viability of entering into a longer term processing agreement.

As part of the LOI, Grupo Wolinak will source the mineralized material for the bulk sample which will be transferred to the Huajicori mill for processing.  Initial shipments are anticipated to arrive at the mill during the week of March 5th.  Grupo Wolinak is a private Mexican company based in Torreon, Coahuila with knowledge of low cost sources of mill feed within Mexico and could be instrumental in establishing additional mill feed sources for Gainey.

Results from processing of the bulk sample will determine the average grade of the sampled material, the recoveries attainable by the mill and costs associated with processing the material.  If the results are favorable, the parties intend to move forward by negotiating a formal ore processing agreement and evaluating the remaining surface mineralized material.  A study completed in 2007 estimated in excess of 30,000 tonnes of surface mineralized material located at various locations on the property at an average grade of 2.65 g/t gold and 300 g/t silver.  While the report is justification for proceeding with a bulk sample it was not prepared in accordance with NI 43-101 and should not be relied upon until verified.

In addition to the property potentially representing a low cost source of feed material for the Huajicori mill, the Company is also reviewing the property as a potential exploration acquisition.  Initial due diligence indicates numerous historic high grade Au-Ag workings clustered in a number of closely spaced districts.  The majority of the mineralized zones are within short trucking distance of each other and highway access.  Potential exists for the discovery of both small scale mineralized structures as well as larger tonnage, high grade zones.

David Coburn, Gainey Capital’s CEO stated, “We are confident this processing partnership will allow Gainey to establish a longer term tolling strategy utilizing our 300 TPD gravity/ flotation mill.  Positive cash flow generated from a potential agreement will allow the company to move forward more aggressively on exploration projects we are currently considering.”

In light of recent opportunities, the company has elected to not move forward with the La Minita property located in Sinaloa, Mexico.

Brian Metzenheim, Vice President Exploration, Gainey Capital Corp. is the Company’s Qualified Person as defined by NI 43-101 and has reviewed and approved the technical information in this news release.

 

ON BEHALF OF THE BOARD OF DIRECTORS

 

    “David Coburn”

David Coburn, Chief Executive Officer

 

For information, please contact the Company:

Phone: 480-347-8904

E-mail: info@gaineycapital.com

Website: www.gaineycapital.com

 

FORWARD LOOKING STATEMENTS: This press release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

               

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.

 

Gainey Capital Issues CEO’s Letter to Shareholders

Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) is pleased to provide David Coburn’s year-end summary of company milestones achieved in 2017 and a look at plans for 2018.

Dear Valued Shareholders,

For Gainey Capital, 2017 has proven to be a pivotal year as we advanced existing assets, negotiated the acquisition of an additional exploration project and secured further funding.  The last several years have been trying times in the junior exploration sector but I believe the work we have completed to date positions us to add significant value to the company in the coming years.  In addition, our success should be complimented by a gradual improvement in the natural resources sector over the longer term.   

During 2017, we continued to advance the El Colomo project.  Early in the year our geological team finalized the Phase I drilling program which had successfully encountered near surface mineralization at the La Nueva Victoria zone, including 70.85 m of 0.65 g/t Au and 35.31 g/t Ag.  The drilling confirmed the district hosts significant gold and silver mineralization in line with results of surface sampling performed by the company.  In the latter half of 2017 a second phase of exploration work was initiated on the property to follow up on results of the Phase I program and further define a number of the remaining untested mineralized zones.  A number of drill ready targets have been defined and will be prioritized in line with other opportunities being considered by the company.                    

In an effort to diversify its exploration portfolio, the company has been actively reviewing projects located in western Mexico.  As part of this program, the La Minita property was identified as a likely candidate for acquisition based on signicant copper, gold and silver grades at surface and substantial exploration potential across the large land package (approximately 9,200 hectares).  Additionally the La Minita property, located in southern Sinaloa state, presents great infrastructure and location as it lies less than 5 kilometers from Mexican Highway 15 and less than 10 kilometers from a rail line.  In late 2017 we successfully negotiated terms to acquire 100% of the property and signed a letter of intent with the company controlling the property.  We look forward to finalizing the formal purchase agreement in early 2018 and beginning work on this exciting project.  

During the second half of 2017 the company successfully closed a private placement that consisted of several tranches and raised nearly $2,000,000 CAD.  We are now finanacially positioned to carry out the next phases of exploration at El Colomo and La Minita.  In 2017 we were also able to strengthen our technical team with the addition of Mark Bailey as Technical Advisor and Brian Metzenheim as VP of Exploration, both with significant prior experience operating in Mexico with Minfinders Corporation.    

In 2018 we are looking forward to leveraging our exploration assets, financial position and expertise to unlock additional value for our shareholders.  With formal acquisition of the La Minita property slated to take place in early 2018, we will quickly advance to a first phase exploration program on the property.  Work will focus on defining drill targets along known mineralized trends as well as identifying additional zones.  Barring unforeseen circumstances, we should be drilling on the property by the second quarter of 2018.  At El Colomo, we will continue to evaluate the potential of the numerous untested mineralized zones on the property and weigh their potential against success at La Minita to prioritize exploration efforts and funds.  Furthermore, we continue to evaluate outside exploration opportunities with several intriguing possibilities currently being considered.  Additionally, the company is carrying on its evaluation and review of sources of feed material for our processing mill located near Huajicori in Nayarit, Mexico. Toll milling contracts are currently being discussed with a number of major companies within Mexico and I look forward to updating shareholders on this in the near future.

With a number of significant opportunities facing the company, 2018 promises to be a busy and transformative year for Gainey Capital.  I would like to thank all of our shareholders for their loyal support over the last several years and extend best my best wishes for the coming year.  We look forward to a successful year as we continue to explore our properties and implement strategies to increase shareholders value.       

 

Thank you,

David Coburn

 

CEO

Gainey Capital Corp.

 

Brian Metzenheim, Vice President Exploration, Gainey Capital Corp. is the Company’s Qualified Person as defined by NI 43-101 and has reviewed and approved the technical information in this news release.

 

For information, please contact the Company:

Phone: 480-347-8904    

E-mail: info@gaineycapital.com

Website: www.gaineycapital.com

 

FORWARD LOOKING STATEMENTS: This press release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

               

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.

Gainey Announces Private Placement Closing

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC – Gainey Capital Corp. (the “Company” or “Gainey”) (TSX-V:GNC) is pleased to announce that it has closed the second, and final tranche of its previously announced non-brokered private placement by issuing an additional 4,132,316 units at a price of $0.12 per unit to raise gross proceeds of $495,878 with all securities issued having a four-month hold period which expires on May 9, 2018. Total gross proceeds of the Offering are $1,699,558 with a total of 14,162,986 shares, 14,162,986 warrants, 75,000 Finders’ shares, and 325,000 Finders’ Warrants being issued.

As previously announced, each Unit in this offering consists of one common share in the capital of the Company (each a “Common Share”) and one share purchase warrant (a “Warrant”). Each full warrant entitles the Unit holder to purchase one (1) additional GNC common share at a price of $0.24 per share at any time within 36 months of the closing.

With respect to finders’ fees, the Company will pay an aggregate of $30,000 in cash, issue 75,000 shares, and issue 325,000 Finders Warrants in connection with this offering. The Company issued 250,000 Finders’ warrants exercisable at a price of $0.16 for a period of 24 months and 75,000 Finders’ warrants at an exercise price of $0.24 for a period of 36 months, and 75,000 Finders’ shares.

The net proceeds of the Offering will be used to advance exploration activities at the Company’s Mexican El Colomo property as well as for general working capital.

Gainey Signs Letter of Intent to Acquire the 9,200 Hectare La Minita Property in Sinaloa, Mexico

Gainey Signs Letter of Intent to Acquire the 9,200 Hectare La Minita Property in Sinaloa, Mexico

Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) is pleased to announce that it has entered into a non-binding Letter of Intent (“LOI”) with Asteria Mining Services, S.A.P.I. de CV of Mazatlán, Sinaloa (“AMS”) to acquire 100% of the La Minita Copper /Gold/Silver Property (“La Minita” or “the property”) located in the state of Sinaloa, Mexico. The property is comprised of five mineral claims or applications encompassing approximately 9,200 hectares located 80 kilometers to the southeast of Mazatlán. The property borders Marlin Gold’s La Trinidad mine property to the northeast and Agnico Eagle’s El Coral property to the southeast. 

The La Minita property consists of a series of northwest trending shears that host copper/gold/silver porphyry style mineralization associated with intermediate and felsic dikes.  The shears are poorly exposed but have been observed to extend for greater than 300 meters along strike and measure up to 10 meters in width.  Over the last several years, local prospectors (gambusinos) have identified and excavated a number of these shear zones at various locations over an area extending for 4.5 kilometers along strike by up to 600 meters wide.  Alteration and mineralization exposed in the workings includes fine grained sericitic alteration, silicification, quartz stockworks and copper sulfides (bornite, chalcopyrite) as disseminations and veins.  The more intense mineralization is hosted in felsic and intermediate composition dikes intruding the shears, indicating an intrusive related source of mineralization. 

In 2015, a reconnaissance study and report was completed for AMS over portions of the 4.5 kilometer long trend.  The study identified the Tio Alejo area centered along the northwestern extent of the trend and the Los Camole area centered along the southeastern extent as being of highest importance based on recent gambusino activity.  Both areas exhibit a similar trend and style of mineralization.  As part of the program, 37 rock chip samples were collected from the workings.  Sample locations, widths, and assay results from the report were reviewed in the field with the supervising geologist and found to adhere to acceptable standards and procedures. 

Notable sample results from the Tio Alejo region include:

  • 0.4 m of 3.98% Cu, 9.81 g/t Au and 125 g/t Ag
    • 1.2 m of 2.15% Cu, 1.065 g/t Au and 35.4 g/t Ag
    • 0.7 m of 2.89% Cu, 1.03 g/t Au and 72.2 g/t Ag

Notable sample results from the Los Camole region include:         

  • 0.3 m of 1.225% Cu, 3.96 g/t Au and 324 g/t Ag
  • 1.3 m of 0.0396% Cu, 4.10 g/t Au and 2.2 g/t Ag
    • 0.8 m of 0.301% Cu, 3.31 g/t Au and 20.9 g/t Ag

Brian Metzenheim, Gainey Capital’s VP of Exploration commented, “The style of mineralization found in the shears may represent the upper extents of a moderately sized porphyry deposit that could host economic grades of copper, gold, and silver. I am encouraged by the regional distribution of the shears and the consistency of grades and alteration hosted by them and look forward to initiating exploration work on the project.”   

David Coburn, Gainey Capital’s CEO stated, “Our technical team led by Brian Metzenheim have spent the last several months on site and reviewing technical data from the property.  We are excited to add La Minita to El Colomo as part of our growing portfolio of exploration projects.  The property is favorably located amongst a number of other projects being advanced by companies such as Marlin Gold (TSXV: MLN), Agnico Eagle (TSX: AEM), First Majestic Silver (TSX: FR), Starcore International Mines (TSX: SAM), SSR Mining (TSX: SSRM), and Garibaldi Resources (TSXV: GGI).”

Terms of the agreement and proposed exploration plans for the property will be summarized in future news releases. 

Brian Metzenheim, Vice President Exploration, Gainey Capital Corp. is the Company’s Qualified Person as defined by NI 43-101 and has reviewed and approved the technical information in this news release.

Gainey Announces Field Review of the El Colomo Project by Vp Exploration and Completion of the Initial Portion of the Phase II Exploration Program

Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce the completion of a project review by Gainey’s recently appointed VP Exploration, Brian Metzenheim. Further, Gainey announces the completion of the mapping and sampling portion of the Phase II exploration program at the El Colomo Gold-Silver project (“El Colomo”) located in the States of Nayarit and Durango, Mexico. 
 
During the latter half of October, Mr. Metzenheim toured the El Colomo property, reviewed work completed to date and evaluated work proposed as part of the Phase II exploration program.  Details of the Phase II program at El Colomo were outlined in the news release dated October 3, 2017. The tour included a review of the previously drilled La Nueva Victoria and La Higuerita zones and related drill core, field review of the El Arrayan, Las Minitas, La Bufa, and El Guayabo zones, and an overview of the exploration potential to the north and northwest of the Golden Corridor where prior reconnaissance stream sediment sampling has identified several drainage basins with anomalous gold. Rafael Gallardo, Senior Geologist with Minera Cascabel S.A. de C.V. led the tour and has directed exploration work on the project in the past.
 
Following the field review of the El Colomo project and exploration work, Brian Metzenheim commented “Rafael and his group have done an exceptional job advancing the project and bringing targets to the drill stage.”  Regarding the potential on the El Colomo property, he stated, “I am encouraged by the presence of an extensive mineralized system that hosts significant precious metal grades.  The next step is to define and expand the most favorable portions of the system and build on past exploration success.”    
 
In conjunction with the project review by Mr. Metzenheim, field crews from Minera Cascabel were mobilized to the project and completed geologic mapping, rock chip sampling and stream sediment sampling. The work was designed to elevate zones within the Golden Corridor to the drill stage, identify additional mineralized zones outside the Golden Corridor, and to evaluate large areas of the company’s claims where no known modern exploration work has been carried out. The majority of the program was carried out as planned, though a portion of the reconnaissance work had to be postponed due to high water flows in the larger arroyos and rivers following the rainy season. A total of 64 rock chip and 13 stream sediment samples were collected.  Field work was finalized in early November and assay results have now been received. Results will be released once they have been assembled and reviewed in conjunction with prior exploration work.
 
In addition to advancing the El Colomo project, the company has also been actively reviewing projects located throughout western Mexico with the goal of acquiring additional properties to add to the company’s exploration pipeline. Projects are being considered on the basis of exploration potential and acquisition costs to minimize risk to capital while ensuring a reasonable probability of identifying an economic deposit.   
 
Brian Metzenheim, Vice President Exploration, Gainey Capital Corp. is the Company’s Qualified Person as defined by NI 43-101 and has reviewed and approved the technical information in this news release.

Gainey Announces Closing of Private Placement

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC – Gainey Capital Corp. (the “Company” or “Gainey”) (TSX-V:GNC) is pleased to announce that it has closed the second, and final, tranche of its previously announced non-brokered private placement by issuing an additional 5,979,653 units at a price of $0.12 per unit to raise gross proceeds of $717,758 with all securities issued having a four-month hold period which expires on March 11, 2018. Total gross proceeds of the Offering are $1,957,558 with a total of 16,312,986 shares, 16,312,986 warrants, and 385,000 Finders’ Warrants being issued.

As previously announced, each Unit in this offering consists of one common share in the capital of the Company (each a “Common Share”) and one share purchase warrant (a “Warrant”). Each full warrant entitles the Unit holder to purchase one (1) additional GNC common share at a price of $0.24 per share at any time within 36 months of the closing.

With respect to finders’ fees, the Company will pay an aggregate of $30,000 in cash, issue 135,000 shares, and issue 385,000 Finders Warrants in connection with this offering. The Company issued 250,000 Finders’ warrants exercisable at a price of $0.16 for a period of 24 months and 135,000 Finders’ warrants at an exercise price of $0.24 for a period of 36 months.

The net proceeds of the Offering will be used to advance exploration activities at the Company’s Mexican El Colomo property as well as for general working capital.

Gainey Announces the Appointment of Brian Metzenheim to Vice President Exploration

Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) is pleased to announce the appointment of Brian Metzenheim as Vice President Exploration, effective immediately.

Brian Metzenheim has over 20 years experience in mineral exploration with a focus on precious metals.  Most recently, Mr. Metzenheim spent 15 years with Minefinders Corporation managing generative reconnaissance programs and project exploration across Northern Mexico including the advanced stage La Bolsa property.  Following the acquisition of Minefinders by Pan American Silver Corp.  Mr. Metzenheim assumed the position of Manager, US Exploration with Pan American Silver, managing the drill confirmation of a 100+ million ounce silver deposit and evaluation of potential acquisition targets. Mr. Metzenheim holds a BSc in Geology from the University of Nevada, Reno, is a Qualified Person as defined by NI 43-101 and is fluent in Spanish.  

“I am excited to join Gainey Capital as VP Exploration and look forward to leading the team that will take the El Colomo project to the next level,” said Brian Metzenheim. “Given the geological similarities of the project to many of the mineral occurrences I have successfully advanced elsewhere in Mexico, I am confident we can unlock the maximum value from El Colomo.”

David Coburn, Gainey’s CEO, stated, “We are very excited to have Brian Metzenheim as our VP Exploration and now leading our exploration strategy and exploration team at Gainey. Brian has had a tremendous amount of success in Mexico with geological systems similar to what we are targeting at our El Colomo project.”

Gainey Announces Phase II Exploration Program at El Colomo

Vancouver, BC – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) is pleased to announce that as of October 15, 2017, the Company will commence its Phase II exploration program at the El Colomo Gold-Silver project (“El Colomo”) in the States of Nayarit and Durango, Mexico. The Phase II program will be divided into four stages, as follows:

Stage 1

Detailed mapping program along the known Golden Corridor, paying particular focus on the El Arrayan, Las Minitas, La Bufa and El Guayabo mineralized zones, located 1.2 km to the south-southeast of the La Nueva Victoria and La Higuerita mineralized zones which have been drill tested by Gainey and have encountered gold and silver mineralization.

Stage 2

Detailed mapping and rock chip sampling to the north of El Colomo’s Golden Corridor where four anomalous gold showings have been identified through the Company’s stream sediment sampling program. Highlights from this program include anomalous gold values of 129 ppb (“parts per billion”), 115 ppb, 74 and 75 ppb. 

These results were encountered in the State of Durango in an area 1.5 km wide by 2.5 km long of strongly argillically-altered and iron-stained volcanic rocks cut by multiple northwest-trending quartz veins. These altered areas, called Las Lajitas-Masparillo, El Verano-Los Aguacates y El Corpo-Encino Prieto, appear to be on-strike with, and may be an extension of, a 2.5  to 4 km to the Northwest of  the mineralized called the Golden Corridor which includes the La Nueva Victoria, La Higuerita, El Arrayan-Las Minitas and La Bufa-El Guayabo mineralized zones.

Stage 3

Stream sediment sampling to the west-northwest of the known Golden Corridor where the Company has completed exploration work on more than 3,000 hectares including mapping, sampling, and drilling.

Stage 4

Drilling program of approximately 3,000 m testing the targets at El Arrayan-Las Minitas and La Bufa-El Guayabo mineralized zones.

Rafael Gallardo, Senior Geologist of Minera Cascabel S.A. de C.V., who is leading the exploration program, stated “After encountering positive mineralization throughout our Phase I exploration program, our technical team has a deeper understanding of the geology surrounding the known gold-silver epithermal systems present throughout the El Colomo project. The exploration that was completed within Phase I has allowed us to define multiple, new targets which we are looking forward to expose.”

Technical aspects of this news release have been reviewed and approved by David Dupre P.Geo., designated as a qualified person under National Instrument 43-101.