Noront to resume exploration at Esker
Noront Resources Ltd. is reopening Esker site and mobilizing its team to resume exploration activities in the Ring of Fire.Read More
“We are initiating a late summer field program that will require 12-15 people during which we’ll employ soil sampling to explore for gold and airborne geophysical surveys to explore for nickel,” said Noront President and CEO Alan Coutts.
Esker Site was closed in early April to protect staff and the communities surrounding Noront’s operations from the spread of COVID-19. Now that the site is reopening, a rigorous back-to-work protocol is in place. It will ensure workers travelling to and from the site are symptom-free and low risk. In addition, travel will be reduced to essential staff with minimal planned flights. While at site, workers will practice social distancing and wear face masks when necessary. Regular sanitizing of common touch points will be performed daily. At no point will Noront flights will be landing in either Webequie or Marten Falls First Nation as per guidance from the local Chiefs and Councils.
Noront previously discovered anomalous gold mineralization in over 50 diamond drill holes along the Triple-J fault zone and within the Thunderbird intrusion 13 km northeast of Esker Site. Both occurrences are close to the Webequie Shear Zone (WSZ) which is believed to be prospective for greenstone hosted gold mineralization but has never been explored for gold (Figure 1).
Soil samples will be collected in a 10 km by 5 km area along the WSZ to detect areas of anomalous gold indicative of a bedrock source. Soil sampling will also be performed across a secondary structure bisecting the Thunderbird ferrogabbro intrusion where past drilling intersected auriferous quartz-sulfide veins cross-cutting magnetite-rich portions of the intrusion resulting in sulfidation of the magnetite to pyrrhotite-pyrite in a process similar to many BIF-hosted gold deposits worldwide.
In 2019, several early stage targets believed to be prospective for nickel mineralization were also identified. From this work the Victory project, located 25 km east of Esker Site, was ranked highly and staked in early 2020. It is thought to consist of a thick sequence of ultramafic sills and/or flows intruding a sulfidic volcano-sedimentary sequence known as the Victory assemblage. The target has never been drilled tested and has had limited geophysical surveying. Geotech has been commissioned to fly a 600 line-km VTEM-plus airborne EM (electromagnetic) survey over the Victory target in late August to identify nickel-sulfide conductors.
Now that all sections of the North-South All-Season Access Road have proponents, funding, and are advancing their Environmental Assessment (EA) processes, Noront will re-initiate EA activities for its Eagle’s Nest nickel-copper-platinum group element deposit. Because an all-season access road was originally part of the Eagle’s Nest Terms of Reference, Noront will submit a request for the access road to be excluded and for an adjusted Terms of Reference to be issued by the province of Ontario.
Annual General Meeting
The Noront AGM will take place on September 3, 2020 at the Company’s Toronto office. To manage potential health risks and provincially mandated COVID-19 physical distancing requirements, a call-in meeting of shareholders will be conducted on that date, followed by a video update and a question and answer session hosted by Noront President and CEO, Alan Coutts. Noront staff in Thunder Bay and Toronto continue to work remotely.
About Noront Resources
Noront Resources Ltd. is focused on development of its high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit and the world class chromite deposits including Blackbird, Black Thor, and Big Daddy, all of which are located in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire.
Ryan Weston, P.Geo., Noront Vice President Exploration and a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI-43-101”) has reviewed and approved the technical information contained in this press release.
We seek Safe Harbor.
Canada Nickel drills 52.5 m of 0.41% Ni at Crawford
Canada Nickel Company Inc. has released additional encouraging results from infill drilling on the Main zone at its Crawford nickel-cobalt sulphide project.Read More
“Our infill drilling program continues to deliver outstanding results. Most importantly, the higher-grade resource shell has been significantly extended westward and establishes a second higher-grade resource shell area in the western end of mineralization. The other three infill holes extended and will help to better define the higher-grade resource shells, which will be the initial focus of the mine plan in the preliminary economic assessment currently under way and expected to be completed by year-end,” said Mark Selby, chair and chief executive officer of Canada Nickel. “Drier weather will allow us to resume drilling this coming Monday. Once infill drilling is completed, we will also follow up on the previously reported excellent PGM [platinum group metal] results from hole CR20-32 (three separate intersections including 2.6 grams per tonne PGM over 7.5 metres) and several other prospective geophysical nickel targets on the several kilometres of the Crawford structure which remain untested.”
- Hole CR20-56 extended the strike length of the Main zone by 375 metres and is expected to expand the 0.3-per-cent higher-grade shell by 168 metres, which remains open along strike to the west.
- All four infill holes in this release continued to extend and better define the higher-grade resource shells and intersected thick intersections of nickel mineralization within the steeply dipping higher-grade core, which varies in true thickness from 40 metres to 160 metres.
- Hole CR20-44 returned 0.41 per cent nickel over a core length of 51 metres within 0.33 per cent nickel over a core length of 118 metres, which further expands width of higher-grade shells on this section.
The Crawford nickel-cobalt sulphide project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity.
Main zone infill results
Infill drilling on the Main zone continued to focus on more clearly defining and upgrading the higher-grade core resource, which was previously defined as part of the resource estimate and dips steeply within the ultramafic unit and having a true thickness that varies from 40 metres to 160 metres.
All four infill holes contained in this release intersected thick intersections of nickel mineralization and continue to extend and better define the higher-grade resource shells. Assays from the remaining 12 infill holes will be released over the next several weeks.
Highlights of the drilling include:
- Infill hole CR20-56 will extend the strike length of the Main zone by 375 metres and is expected to extend the 0.3-per-cent higher-grade shell by 168 metres. Mineralization remains open along strike to the west. The 0.35-per-cent-grade shell is expected to be created in the western portion of mineralization as the hole returned 0.42 per cent nickel over a core length of 31 metres from 186 metres within 0.34 per cent nickel over a core length of 148 metres from 114 metres.
- Infill hole CR20-46 intersected thick intersections of nickel mineralization with 0.31 per cent nickel across an entire core length of 363 metres within the steeply dipping higher-grade core, which varies in true thickness from 40 metres to 160 metres.
- Infill hole CR20-44 returned 0.41 per cent nickel over a core length of 52 metres from 350 metres within 0.33 per cent nickel over a core length of 118 metres from 283 metres, further expanding the width of higher-grade shells on this section.
Note: These holes were drilled at a steep angle of minus-80 degrees almost entirely within the higher-grade core to better determine grade. Hole CR20-56 was drilled at a minud-50-degree angle along the strike of the mineralization and the core length represents 65 per cent of the core length. The estimated true width of this zone has been determined from previous drilling to vary from 40 metres to 160 metres depending on location of the section.
All drill results to date will be incorporated into an updated resource now expected by the end of August. Once infill drilling is completed, the company will also follow up on the previously reported excellent PGM results from hole CR20-32 (three intervals including 2.6 grams per tonne PGM over a core length of 7.5 metres) and several other prospective geophysical targets on the several kilometres of the Crawford structure that remain untested on the west side of the highway.
Assays, quality assurance/quality control, and drilling and assay procedures
William E. MacRae, MSc, PGeo, a qualified person as defined by National Instrument 43-101, is responsible for the continuing drilling and sampling program, including quality assurance and quality control. The core is collected from the drill in sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5-metre lengths and cut with a diamond blade saw. Samples are bagged with quality assurance/quality control samples inserted in batches of 35 samples per lot. Samples are transported in secure bags directly from the Canada Nickel core shack to Actlabs Timmins, an ISO/IEC 17025-accredited lab. Analyses for precious metals (gold, platinum and palladium) are completed by fire assay while analyses for nickel, cobalt, sulphur and 17 other elements are performed using a peroxide fusion and ICP-OES analysis. Certified standards and blanks are inserted at a rate of one quality assurance/quality control sample per 32 core samples, making a batch of 35 samples that are submitted for analysis.
Qualified person and data verification
Stephen J. Balch, PGeo (Ontario), vice-president, exploration, of Canada Nickel and a qualified person as such term is defined by NI 43-101, has verified the data disclosed in this news release and has otherwise reviewed and approved the technical information in this news release on behalf of Canada Nickel.
About Canada Nickel Company Inc.
Canada Nickel is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the high-growth electric vehicle and stainless steel markets. Canada Nickel has applied in multiple jurisdictions to trademark the terms NetZero Nickel, NetZero Cobalt and NetZero Iron and is pursuing the development of processes to allow the production of net-zero carbon nickel, cobalt and iron products. Canada Nickel is currently anchored by its 100-per-cent-owned flagship Crawford nickel-cobalt sulphide project in the heart of the prolific Timmins-Cochrane mining camp.
We seek Safe Harbor.
Revival Gold closes $15.05-million public offering
Revival Gold Inc. has closed its previously announced public offering of 13,685,000 units of the company at a price of $1.10 per unit for aggregate gross proceeds of $15,053,500, including 1,785,000 additional units issued pursuant to the exercise in full of the overallotment option granted to the underwriter (as defined as follows) in connection with the offering.Read More
The offering was conducted by BMO Capital Markets as sole underwriter. In consideration for the services provided by the underwriter in connection with the offering, the company has paid the underwriter a cash fee of 6 per cent of the aggregate gross proceeds from the offering.
Each unit consists of one common share of Revival Gold and one-half of one common share purchase warrant of Revival Gold. Each warrant entitles the holder thereof to purchase one common share of the company at a price of $1.60 per common share for a period of 18 months following the closing date.
The company intends to use the net proceeds of the offering to finance continuing exploration and development at Revival Gold’s Beartrack-Arnett gold project located in Lemhi county, Idaho, and for general corporate purposes.
“The completion of this financing will accelerate Revival Gold’s plans for Beartrack-Arnett,” said Hugh Agro, president and chief executive officer. “Geologic fieldwork was initiated this season in July. The deposits are open and exploration drilling is expected to resume shortly.”
The units were offered by way of a short form prospectus in all provinces of Canada, excluding Quebec, and offered by way of private placement in the United States pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended, and applicable state securities laws and other jurisdictions outside of Canada and the United States on an exempt basis. The offering remains subject to the final approval of the TSX Venture Exchange.
Steven T. Priesmeyer, CPG, vice-president, exploration, Revival Gold, is the company’s designated qualified person for this news release within the meaning of National Instrument 43-101, Standards of Disclosure for Mineral Projects, and has reviewed and approved its scientific and technical content.
About Revival Gold Inc.
Revival Gold Inc. is a growth-focused gold exploration and development company. The Company has the right to acquire a 100% interest in Meridian Beartrack Co., owner of the former producing Beartrack Gold Project located in Lemhi County, Idaho. Revival Gold also owns rights to a 100% interest in the neighboring Arnett Gold Project.
Beartrack-Arnett is the largest past-producing gold mine in Idaho and hosts the second largest known deposit of gold in the state. A Preliminary Economic Assessment is underway on the potential re-start of a phase one open-pit heap leach operation and exploration continues focused on expanding the current Indicated Mineral Resource of 36.4 million tonnes at 1.16 g/t gold containing 1.35 million ounces of gold and Inferred Mineral Resource of 47.2 million tonnes at 1.08 g/t gold containing 1.64 million ounces of gold. The mineralized trend at Beartrack extends for over 5 km and is open on strike and at depth. Mineralization at Arnett is open in all directions. For further details, including key assumptions, parameters and methods used to estimate the Mineral Resources, please see the Company’s technical report titled “Technical Report on the Beartrack-Arnett Gold Project, Lemhi County, Idaho, USA” dated February 21, 2020 and with an effective date of December 10, 2019, available on SEDAR at http://www.sedar.com.
Following the completion of the Offering, Revival Gold has approximately 70.2 million shares outstanding and a current cash balance of approximately $14.8 million. Additional disclosure including the Company’s financial statements, technical reports, news releases and other information can be obtained at http://www.revival-gold.com or on SEDAR at http://www.sedar.com.
We seek Safe Harbor.
Generation Mining finds MT anomaly at Marathon
Generation Mining Ltd. has released the preliminary results from its Spartan magnetotelluric (MT) survey over a portion of the Marathon deposit resource, including the W horizon and structures to the west of the deposit, which are believed to have provided a favourable environment for enriched palladium mineralization. Analysis of the MT data has identified one prospective target which consists of a discrete, previously undrilled, conductive MT anomaly situated at a vertical depth of approximately 650 meters downdip and immediately west of the Marathon Palladium Copper Deposit (Figure 1). The anomaly is at a depth beyond the depth penetration capabilities of a preexisting airborne electromagnetic survey of this area (completed by a previous operator) and most importantly the anomaly is more conductive than Marathon Palladium Copper deposit mineralization. Consequently, the anomaly constitutes a high priority drill target given its coincidence with the presumed down dip extension of the Marathon Series Gabbros which constitute the feeder zones to, and are the host of, PGM-Cu mineralization at the Marathon Deposit.Read More
Of specific interest in the immediate vicinity of the MT anomaly are extensions to the W Horizon which is recognized in the scientific literature as a zone of extreme palladium enrichment.
The magnetotelluric method, typically abbreviated as MT, is an electromagnetic geophysical technique that uses natural electric fields from lightning sources, solar flares and ionospheric resonances that induce current flow in the ground which may be used to image the earth’s electrical resistivity structure from surface to great depths. MT data are processed and presented as resistivities which may be correlated with various geological features including conductive features which are of particular interest to the Company at the Marathon Property. MT has been used successfully on several PGM exploration projects in Northwestern Ontario.
MT surveys at Marathon which began in mid-June 2020 (see June 17th, 2020 press release) were expanded to include the Four Dams as well as the Sally and Marathon areas. Analysis of the Sally and Four Dams results is expected shortly. Quantec Geoscience Limited crews completed the MT survey on July 24th on time and on budget and collected a total of 123 deep search geophysical soundings over the three survey areas. Alan King, P.Geo. Consulting Geophysicist at Geoscience North provided on going QA/QC of survey results as well as data imaging and interpretation. Data for the entire survey is currently being processed and the Company plans to begin follow up of MT results with a minimum of 5,000 metres of drilling commencing in August, 2020.
DDH M 19-535 Az 61.3 deg./Dip -72.2 deg. No economic intersection
DDH M 07-405 Az 95.0 deg./Dip -76.0 deg. True Thickness 82 m Assays by Accurassay
DDH M 19-533 Az 91.9 deg/Dip -64.2 deg. True Thickness 62 m Assays by ALS Global
The Company is well financed for the next phases of work, including the feasibility study and the restart of the permitting process, both of which are underway at the Marathon Palladium Copper Project, with approximately $13.5 million in cash.
About the Marathon Palladium Project
Generation Mining has begun a Feasibility Study on the Marathon Deposit, which is the largest undeveloped platinum group metal Mineral Resource in North America. The Marathon Property covers a land package of approximately 22,000 hectares or 220 square kilometres. Gen Mining acquired a 51% interest in the Marathon Property from Sibanye Stillwater on July 10th, 2019 and can increase its interest to 80% by spending $10 million over a period of four years. As of Q1, 2020, approximately $4 million of the $10 million has already been spent. Sibanye Stillwater has certain back-in rights that can bring its interest in the Property back to 51% after such time Gen Mining has earned its 80% interest (see the Company’s press release of July 11th, 2019, for more details).
Rod Thomas, P.Geo., Company Vice-President, Exploration and a Director has reviewed and approved the scientific and technical information contained in this news release. Mr. Thomas is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects.
We seek Safe Harbor.
Almaden Minerals closes unit private placement
Almaden Minerals Ltd. has closed its previously announced non-brokered private placement with the issuance of 3.1 million units at 65 cents per unit.Read More
Each unit consisted of one common share of the company and one non-transferable common share purchase warrant. Each warrant allows the holder to purchase one common share at a price of 90 cents until Aug. 6, 2023.
The offering was made by way of a private placement to qualified investors in Canada, the United States and certain other jurisdictions where the offering could lawfully be made. All securities issued and issuable under the offering are subject to a four-month hold period expiring Dec. 7, 2020, in accordance with applicable securities laws in Canada, and additional restrictions under the laws of the United States and other jurisdictions in which the offering was made.
The company has agreed to pay finders’ fees of up to $52,341.25 in cash to arm’s-length, licensed securities dealers on a portion of the offering. Almaden intends to use the net proceeds of the offering to pursue permitting of the Ixtaca project and for general corporate purposes.
About Almaden Minerals Ltd.
Almaden owns 100 per cent of the Ixtaca project in Puebla state, Mexico, subject to a 2-per-centnet smelter return royalty held by Almadex Minerals Ltd. Almaden discovered the Ixtaca gold-silver deposit in 2010.
We seek Safe Harbor.
Abraplata Resource arranges $15-million financing
Abraplata Resource Corp. intends to complete a non-brokered private placement for aggregate gross proceeds of up to $15,000,120 through the issuance of up to 55,556,000 units of the company to be priced at 27 cents per unit. Mr. Eric Sprott has indicated his intention to invest up to $10,000,000 in the Offering and will subscribe up to 37,037,037 Units.Read More
Each Unit will consist of one common share in the capital of the Company (each, a “Common Share”) and one-half of one share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder to purchase one additional Common Share at a price of $0.40 until the second (2nd) anniversary of the closing date of the Offering (the “Expiry Date”). Notwithstanding the foregoing, in the event that the daily high trading price of the Common Shares on the TSX Venture Exchange surpasses $0.70 following the closing of the Offering for 20 consecutive trading days, the Company may, within 30 days of the occurrence of such event, deliver a notice to the holders of Warrants accelerating the Expiry Date to the date that is 30 days following such notice, and any unexercised Warrants after such period shall automatically expire.
Mr. John Miniotis, President and CEO of AbraPlata commented, “The strong investment interest in AbraPlata by Eric Sprott is a clear reflection of the exposure and leverage that our Diablillos project provides in a rising silver and gold price environment. Upon completion of this financing, AbraPlata will have over $20 million of cash on its balance sheet which will provide us with the needed financial flexibility to aggressively advance Diablillos and to accelerate our exploration efforts on the surrounding regional property package.”
The proceeds of the Offering will be used for exploration of the Company’s mineral properties and for general corporate purposes.
The Offering is scheduled to close on or about August 27, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals of the TSX Venture Exchange. The securities to be issued under this Offering will be offered by way of private placement exemptions in all the provinces of Canada. The Units to be issued under this Offering will also be offered offshore, including in the United Kingdom pursuant to applicable exemptions and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.
The Company may pay fees to certain finders including Clarus Securities Inc. in respect of the Offering.
AbraPlata anticipates that certain insiders, including Mr. Sprott, will acquire securities in the Offering. To the extent such insiders participate in the Offering, any such participation would be considered a “related party transaction” as defined under Multilateral Instrument 61-101.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the issuer and its management, as well as financial statements.
AbraPlata is a mineral exploration company with a diversified portfolio of silver-gold and copper exploration projects in Argentina and Chile. The Company is focused on advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which is well-advanced, with more than US$35 million spent historically on exploration with drilling ongoing and an initial open pit PEA completed in 2018. The Company is led by an experienced management team and has long-term supportive shareholders including Altius Minerals and SSR Mining. In addition, AbraPlata owns the Arcas project in Chile where Rio Tinto has an option to earn up to a 75% interest by funding up to US$25 million in exploration. AbraPlata is listed on the TSX-V under the symbol “ABRA”.
We seek Safe Harbor.
Eastern Platinum loses $11.2M (U.S.) in H1
Eastern Platinum Ltd. has filed its Q2 2020 condensed interim consolidated financial statements and management’s discussion and analysis for the three and six months ended June 30, 2020. Below is a summary of the company’s financial results for Q2 2020 (see COVID-19 below) (all amounts are in U.S. dollars):Read More
- Revenue for the six months ended June 30, 2020, increased to $23.5-million (H1 2019 — $15.8-million) — 49-per-cent increase.
- Operating loss for the six months ended June 30, 2020, remained flat at $2.2-million (H1 2019 — $2.2-million), even with the lost production due to COVID-19.
- Net loss to equity shareholders was $11.2-million (loss of 12 cents per share) during the six months ended June 30, 2020, compared with $200,000 (loss of nil per share) in the same period of 2019 — the large increase resulting from a $7.5-million change in foreign exchange losses due to a significant devaluation in the South African rand to the U.S. dollar as a result of COVID-19 and the settlement of a legal dispute with AlphaGlobal.
- The company has a strong financial position with cash of $4.7-million and net working capital (excluding non-cash deferred revenue) of $8.0-million as at June 30, 2020.
- Net operating cash flows generated were $3.3-million during the first six months of 2020 compared with $8.0-million used during the same period of 2019.
Barplats Mines Pty. Ltd., a subsidiary of Eastern Platinum, is in full operation with its tailings retreatment project located at the Crocodile River mine following the South Africa government-imposed lockdown, which continued into April, 2020, and a further brief temporary shutdown in June, 2020, both as a result of COVID-19.
Additionally, a PGM (platinum group metals) scavenger plant operating from the feed following the chrome plant was restarted in late July, 2020.
SUMMARY OF CHROME RECOVERY PRODUCTION DURING THE THREE MONTHS OF Q2 2020 Average grade Cr Tons of Cr concentrate concentrate 38.51% 214,994 SUMMARY OF CHROME RECOVERY PRODUCTION DURING THE THREE MONTHS OF Q2 2019 Average grade Cr Tons of Cr concentrate concentrate 38.72% 114,446
Settlement of AlphaGlobal legal dispute
As previously announced (press release dated June 26, 2020) the company closed and signed a settlement agreement with AlphaGlobal Capital Inc. to dismiss all claims against the company and its subsidiaries and to release the company from any and all claims that AlphaGlobal may have against the company or its subsidiaries, in exchange for the issuance of eight million common shares of the company at a deemed subscription price of 23.5 Canadian cents ($1.88-million (Canadian)), six million common share purchase warrants exercisable at 24 Canadian cents each entitling the holder to acquire one common share of the company for a period of two years, and the payment of nine million South African rand (five million South African rand (paid) and one million South African rand each quarter-end starting on Sept. 30, 2020) ($720,000 (Canadian)).
Diana Hu, the chief executive officer of Eastern Platinum, stated, “This settlement closes a long-standing chapter and eliminates a significant contingency for the company, created years ago by the previous management of the company.” Ms. Hu further added, “Current management continues to focus on operations of the retreatment project and other potential projects and opportunities to create value for all stakeholders.”
The company is pleased to have its work force returned and the retreatment project in full operations and also the start-up during July of the PGM scavenger plant.
The company will update its forecasts following the completion of the optimization program, which is currently not known. The effects of COVID-19 are changing rapidly and could have material effects on the company’s 2020 outlook and its ability to attain targets.
The company’s targets for 2020 subject to capital availability include:
- Completion of the optimization program for the retreatment project;
- Maximize operating results of the retreatment project;
- Establishment and execution of the appropriate TSF phase 2 capital works program;
- Commissioning and operation of the PGM scavenger plant;
- Assessment of the Circuit H project;
- Assessment and decision regarding the larger-scale PGM production for the tailings resource;
- Assessment of the CRM Zandfontein underground operations;
- Ensure appropriate care and maintenance on all resource properties;
- Assessment and decision regarding Mareesburg project.
The company is actively looking at opportunities for its other assets and properties and exploring options to utilize or monetize these assets.
The company has filed the following documents, under the company’s profile on SEDAR:
- Condensed interim consolidated financial statements for the three and six months ended June 30, 2020;
- Management’s discussion and analysis for the three and six months ended June 30, 2020.
On March 27, 2020, South Africa began a government-directed nationwide lockdown to fight COVID-19 and as a result the company temporarily ceased its operations at CRM, until an essential services permit was issued by the government on April 8, 2020. Accordingly, the company began to recall certain of its workers and following some additional maintenance and after a short ramp-up the company began operating at 50 per cent of the work force until May 1, 2020. During May the company then began to recall its remaining work force that was on paid leave back to the mine, so that at June 1, 2020, all staff were back at work.
On June 13, 2020, the company temporarily halted production for several days at CRM due to positive COVID-19 cases, but after full-scale deep cleaning and testing, resumed operations at CRM.
The effects of COVID-19 are evolving and changing and the consequences of a further temporary shutdown of the CRM or other related issues cannot be reasonably estimated at this time but could potentially have material adverse effects on the company’s business, liquidity and cash flows.
We seek Safe Harbor.
Treasury Metals closes acquisition of Tamaka Gold
Treasury Metals Inc. has completed its previously announced acquisition, pursuant to a share purchase agreement with First Mining Gold Corp., whereby Treasury acquired all of the issued and outstanding shares of Tamaka Gold Corp., a wholly owned subsidiary of First Mining that owns a 100-per-cent interest in the Goldlund gold project, located adjacent to Treasury’s Goliath gold project in Northwestern Ontario. Matters related to the Transaction were approved by shareholders of the Company at the annual general and special meeting on August 5, 2020.Read More
Greg Ferron, CEO of Treasury, commented: “Completion of this acquisition comes at a transformational time for our shareholders and solidifies the Goliath and Goldlund projects as among the largest undeveloped gold assets in Canada. The close proximity of the Goliath-Goldlund gold projects create a multi-million ounce, district-scale opportunity with significant resource growth potential. We are pleased to have added the Goldlund gold project into our development timeline, and combined with the existing infrastructure in the region, and pending further economic and technical evaluation, it is expected to generate substantial co-development synergies as the properties are further advanced.”
Treasury Metals has initiated a number of important work programs to advance both the Goliath and Goldlund gold projects. These activities include:
- Completion of an economic evaluation of a Goliath plus Goldlund scenario. Technical studies are underway to support this analysis, including plant and processing facilities, mining optimization, and an evaluation of potential operations at Goliath (underground and open pit) combined with Goldlund open pit mining scenarios. Future technical studies are also anticipated to include an optimization of the tailings storage facilities to review potential efficiencies that may be gained from developing the two projects in tandem. Results of this study are anticipated in late 2020.
- The commencement of a 25,000-metre drill program. Drilling at Goldlund will be focused on infill and expansion starting with Zone 1, 4 and 8. At Goliath, drilling will continue to focus on potential expansion of the east C Zone within the resource area in addition to exploration drilling on the prospective regional targets recently identified through IP and soil sample programs.
- Environmental baseline collection commenced to assist with the development and permitting activities for Goldlund. Treasury Metals has also engaged additional support to assist with ongoing permitting efforts at Goliath and continues to engage and discuss operational and development plans with regional Indigenous communities, the public, and local stakeholders.
Under the terms of the Agreement, as consideration for the acquisition of Tamaka, First Mining received: (i) 130 million common shares (“Common Shares”) of Treasury (the “Share Consideration”); (ii) 35 million Common Share purchase warrants of Treasury (the “Warrants”), with each Warrant entitling the holder thereof to purchase one Common Share at an exercise price of $0.50 for a period of 36 months (the “Warrant Consideration”); (iii) a 1.5% net smelter returns royalty covering all of the Goldlund claims (the “Goldlund Royalty”), with the option for Treasury to buy-back 0.5% of the Goldlund Royalty for $5.0 million; and (iv) a milestone cash payment of $5.0 million, with 50% payable upon receipt of a final and binding mining lease under the Mining Act (Ontario) to extract ore from an open pit mine at Goldlund, and the remaining 50% payable upon the extraction of 300,000 tonnes of ore from a mine at Goldlund. As a result of the issuance of the Share Consideration and the Warrant Consideration to First Mining, First Mining became a “control person” of the Company as such term is defined in applicable Canadian securities laws.
As announced on August 5, 2020, the Company also received shareholder approval to complete its previously announced consolidation (the “Consolidation”) of its Common Shares on the basis of three (3) Common Shares for one (1) Common Share. The Consolidation will be effective as at August 11, 2020 and the Common Shares will begin trading on a post-Consolidation basis on the TSX that same day under its new Cusip No. 894647825 (ISIN CA8946478259). The Company’s ticker symbol “TML” will remain the same and “TSRMF” on the OTCQB.
In connection with the closing of the Transaction, Treasury increased the size of its board of directors (the “Board of Directors”) to seven. Treasury is pleased to announce the appointment of Frazer Bourchier, David Whittle, and Daniel W. Wilton as First Mining nominees to the Board of Directors, joining William Fisher (Chairman), Marc Henderson, Flora Wood, and Christophe Vereecke.
To accommodate the new board appointees, Doug Bache and Greg Ferron resigned as members of the Board of Directors upon closing of the Transaction. The Board of Directors would like to thank Mr. Bache for his contribution and exemplary service to the Company over the years and wish him well in his future endeavours. Mr. Ferron shall remain as CEO of Treasury.
Background of the Three New Directors
Mr. Bourchier is a registered professional engineer with over 30 years of domestic and international experience in the mining industry. This has included a healthy mix of both open pit and underground mine environments; plant construction; operations during ramp-up, turnaround, and steady-state phases and mine closures. This has involved both the precious metals and polymetallic minerals extraction business. His breadth of experience includes both operational field management and executive corporate oversight leadership. In addition to this strong combination of technical, site and corporate level experience underpinned with a skillset in strategic planning and enterprise risk management, his public company and inter-company Board governance experience is further complemented by his McMaster University accredited Chartered Director Certification. Mr. Bourchier’s most recent executive role was as Chief Operating Officer of Detour Gold from January 2018 until June 2019. In that role, Frazer spearheaded the turn-around of the Detour mine operation, Ontario, prior to its sale to Kirkland Lake Gold. From 2012 to 2017, Mr. Bourchier held the role of Chief Operating Officer at Nevsun Resources where he provided leadership for the successful gold oxide mining operation and the development of the copper and zinc expansion projects at the Bisha open pit, Eritrea, with impressive first quartile safety metrics for 6 continuous years. He also led the technical due diligence for the highly successful Timok acquisition, in Serbia. Preceding this successful tenure, Frazer was an operational Executive at Wheaton Precious Metals (formerly Silver Wheaton). For the first 16 years of his career, he worked at Placer Dome (subsequently Barrick Gold) where he held positions of increasing responsibility including Mining Manager and General Manager at the Porgera open pit gold mine. Mr. Bourchier has a Bachelor’s and Master’s degrees in Applied Science and Engineering from the University of Toronto.
Mr. Whittle is a Chartered Professional Accountant with over 25 years of senior executive experience in the mining industry, and has been responsible for strategic planning initiatives, operations and all aspects of corporate and financial management and administration. More recently, from 2004 to 2007, he was Chief Financial Officer of Hillsborough Resources Limited, and from 2007 through 2014 was both Chief Financial Officer and Company Ethics Officer of Alexco Resource Corp. Mr. Whittle has served as a director of a number of public companies over his career, primarily in the resource sector, with extensive experience on audit committees, compensation committees and special committees. With respect to his most recent directorships, he is currently on the board of Alio Gold Inc., where he has been a director since 2019 serving as Audit Committee Chair. He was also a director of Mountain Province Diamonds Inc. from 1997 to May 2020, for much of that time serving as Audit Committee Chair and Lead Outside Director. He served as Interim CEO of Mountain Province from June 2017 to May 2018, leading the company through a chief executive transition and the refinancing of its senior debt facility, then resuming his role as an independent director. Mr. Whittle holds a Bachelor of Commerce (Finance) from the University of British Columbia.
Daniel W. Wilton
Dan Wilton has over 25 years of experience in M&A, corporate finance and principal investing in the mining sector, having executed as principal or advised on more than $10 billion of mergers, acquisitions and divestitures and more than $1 billion of financings. Dan has been the CEO of First Mining Gold since January, 2019. Prior to joining First Mining, he was a Partner at Pacific Road Capital Management, a mining-focused private equity investment firm with approximately $800 million under management. Dan’s previous roles included Managing Director and Head of the Global Mining and Metals Group at National Bank Financial Inc., Managing Director in Business Development at General Electric based in London, England, and other corporate finance and M&A roles at global financial institutions based in Toronto and New York. He currently serves as Vice Chair of the Board of Directors and is Chair of the Audit and Finance Committee for Providence Health Care in Vancouver, Canada. Dan holds a B.Comm (First Class Honours) from Queen’s University and an MBA (with Distinction) from INSEAD in France.
In connection with the Transaction, Treasury and First Mining entered into an investor rights agreement (the “Investor Rights Agreement”) pursuant to which First Mining was entitled to nominate three directors, being Frazer Bourchier, David Whittle, and Daniel W. Wilton. Additionally: (i) for so long as First Mining holds greater than 10% of the issued and outstanding Common Shares, First Mining shall have the right to nominate two nominees for election as directors of Treasury; and (ii) for so long as First Mining holds greater than 5% but less than 10% of the issued and outstanding Common Shares, First Mining shall have the right to nominate one nominee for election as a director of Treasury.
Advisors and Counsels
Haywood Securities Inc. acted as financial advisor to Treasury. Dentons Canada LLP acted as legal counsel to the Special Committee of the Board of Directors and McMillan LLP acted as legal counsel to Treasury.
Mark Wheeler, PEng, Director of Projects, and Adam Larsen, PGeo, Exploration Manager, are both “Qualified Persons” for the purposes of National Instrument 43-101 — Standards of Disclosure for Mineral Project, and have reviewed and approved the scientific and technical disclosure contained in this news release on behalf of Treasury.
About Treasury Metals Inc.
Treasury Metals Inc. is a gold focused company with assets in Canada and is listed on the TSX under the symbol “TML” and on the OTCQX Best Market under the symbol TSRMF. Treasury’s flagship Goliath Gold Project and Goldlund Gold Project is located in Northwestern Ontario. The project benefits substantially from excellent access to the Trans-Canada Highway, related power and rail infrastructure, and close proximity to several communities including Dryden, Ontario. Treasury plans on the initial development of an open pit gold mine with subsequent underground operations. The Company also owns several other projects throughout Canada, including Lara Polymetallic Project, Weebigee Gold Project, and grassroots gold exploration property Gold Rock/Thunder Cloud.
We seek Safe Harbor.
GoviEX Uranium closes $5-million private placement
Further to its announcement on Aug. 6, 2020, GoviEX Uranium Inc. has closed its non-brokered private placement offering of 35,714,286 units at a price of 14 cents per unit for gross proceeds of approximately $5-million. Each Unit consist of one (1) Class A common share in the capital of the Company (a “Common Share”) one (1) transferable share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire one (1) Common Share (a “Warrant Share”) until August 6, 2025, at an exercise price of US$0.15 per Warrant Share, subject to applicable adjustment.Read More
All securities issued under this Private Placement are subject to a hold period and may not be traded before December 7, 2020. In addition, securities issued to subscribers in the United States are subject to a hold period under the United States Securities Act of 1933, as amended (the “1933 Act”) and can only be resold in strict compliance with the applicable exemptions from the registration requirements of the 1933 Act.
The net proceeds from the Private Placement will be used to fund continued exploration and development activities on GoviEX’s Madaouela, Mutanga and Falea projects and for general working capital purposes.
In connection with the last tranche of the Private Placement, the arm’s length finder, Red Cloud Securities Inc. (“Red Cloud”), will receive a cash commission of C$15,540 (being 6% of the gross proceeds raised under the last tranche of the Private Placement from subscriptions sourced by Red Cloud) and non-transferable finder’s warrants (equal to 6.0% of the number of Units sold under the last tranche of the Private Placement to subscribers sourced by Red Cloud) (“Finder’s Warrants”) to acquire up to 111,000 Common Shares (“Finder’s Warrant Shares”) at a price of C$0.14 per Finder’s Warrant Share until August 6, 2025, subject to applicable adjustment.
The Private Placement remains subject to final TSX Venture Exchange acceptance.
About GoviEX Uranium
GoviEX is a mineral resource company focused on the exploration and development of uranium properties in Africa. GoviEX’s principal objective is to become a significant uranium producer through the continued exploration and development of its flagship mine-permitted Madaouela Project in Niger, its mine-permitted Mutanga Project in Zambia, and its multi-element Falea Project in Mali.
We seek Safe Harbor.