Athena Silver Corporation (“Athena” or the “Company”) (OTCBB: AHNR) announced today it has completed a private placement of 3,750,000 common shares at $0.10 for a total of $375,000. The funds will be used to fund the planned drilling program at the Langtry project and to repay debt.
Athena also announced it has increased the scope of its previously announced reverse circulation drilling program. The updated program will consist of 14 holes: 11 vertical holes drilled to depths of between 350’ to 575’ will attempt to test and verify the results of the much larger historic drilling program conducted by Superior Oil Company; three additional angle holes drilled to a depth of 600’ each would explore new targets near historic workings on the property. The primary objective of the program is to test historic drilling results obtained by Superior Oil Company. Superior was an independent American oil company acquired by Mobil Corporation (now Exxon Mobil Corp.) in 1984 for $5.7 billion. Athena intends to have assays and metallurgical studies conducted on the samples generated from the drilling program.
The proposed drilling program is expected to commence next month and is still contingent upon several details being finalized, including applicable regulatory approvals.
Athena entered into a 20-year mining lease with option to purchase the Langtry claims on March 15, 2010. The Langtry claims consist of 20 patented claims comprising 413.22 acres near the historic Calico Mining District in San Bernardino County, California. The lease/purchase agreement is subject to continuing financial and work commitments on the claims and other royalties more fully described in the Company’s filings, available on the SEC’s website at www.sec.gov.We have no reportable mineral reserves within SEC reporting requirements. Even if we confirm the existence of silver resources, it may not be of sufficient quantity to make recovery operations commercially feasible. Additionally, even if we find silver in sufficient quantity to warrant recovery silver ultimately may not be recoverable, or recoverable profitably. Failure to locate silver resources in economically recoverable quantities may cause us to reevaluate our plans of operations, which may result in a suspension of our exploration activities. Safe Harbor This press release may contain projection and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Any such statement reflects the Company’s current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur and actual results could differ materially from those presented. A discussion of important factors that could cause actual results to differ from those presented is included in the Company’s periodic reports filed with the Securities and Exchange Commission (at www.sec.gov).