• A total of nine veins were intersected in P001001 with previously unreported intercepts including:
  • 1.30 metres (m) at 28.18 grams per tonne (g/t) gold from 381.7 metres depth, including;
  • 0.50 metre at 71.9 g/t gold and 60.2 g/t silver;
• Ten additional veins intersected in holes 002 to 004 with grades up to 18.55 g/t gold. Four additional zones seven metres to 10 metres thick intersected lower-grade gold;
• Six of the veins drilled in holes 002 to 004 were virgin discoveries targeted by gold-in-soil anomalies. These new discoveries validate the soil sampling technique in this weathering environment and significantly increase the prospectivity of many areas throughout the property that have no known or visible mineralization;
• Drilling to date has tested only approximately 20 per cent of known mineralization to a depth of only 350 metres below surface. Many high-grade vein targets are yet to be tested, along with additional areas of replacement and porphyry-style gold potential.

Principal takeaways from the initial drill results to date include:

• The high grades seen in shallow mine sampling throughout the property have been proven at depth and the total vertical extent of high grade in veins has been extended to more than 1000 metres.
• There is no indication that high grade in veins is diminishing at depth as one of the deepest intercepts to date runs 71.9 g/t gold.
• The potential for high-grade gold can be estimated from the extensive distribution of small mines as the artisanal miners only worked areas of highest grade given their primitive free gold recovery technology.
• The soil sampling technique has been validated by several newly discovered veins in holes 002 to 004. This puts numerous additional areas into play property wide.
• The presence of four thicker mineralized zones characterized by intense quartz-carbonate veining and hosted by three different rock types bodes well for future discoveries in multiple environments.

The planned 10-hole, 4,500-metre phase 1 program began in early October and, to date, almost 3,000 metres have been completed. Drilling conditions and contractor performance have been excellent with core recoveries at almost 100 per cent in all holes. At the current rate, phase 1, which is on time and within budget, will be finished in January, 2021.

Geological description of the Abriaqui project

The main target at Abriaqui is a series of over 80 mesothermal-style quartz plus/minus carbonate veins with a sulphide assemblage dominated by pyite pyrrhotite. The veins are developed in a 1.5-kilometre-by-four-kilometre diorite body of upper Miocene age and a hornfels zone developed in flanking sediments. The veins are developed in east-west-trending and northwest-trending structural corridors 250 to 350 metres wide and up to 1,200 metres long. Assays of over 20 g/t gold have been received for veins over a 1,000-metre vertical interval from shallow mine workings and drill intercepts. There is little difference in grade or metal ratios within the vertical range observed which is typical of higher-temperature, deep-seated mesothermal veins. Gold grades of over 20 g/t are common in the veins with occasional samples in excess of 100 g/t.

There is additional gold mineralization in stockwork veinlet zones and breccias between some of the veins which adds potential for thicker widths of mineralization. There is also lower-grade gold mineralization in manto-style replacement zones in parts of the sedimentary package.

The geological setting at Abriaqui is similar to that at the Buritica gold deposit 15 kilometres to the east. The global resource at Buritica is 11.3 million ounces at an average of 9.4 g/t gold. At Buritica, the host diorite intrusion is of similar age, size and composition with that at Abriaqui and high-grade gold veins have been drilled over a minimum 1,200-metre vertical interval. The Abriaqui veins would correspond to the deeper part of the Buritica system where the sulphide and alteration assemblages are dominated by pyrrhotite, magnetite and biotite.

Details of drill results to date

The aim of the phase 1 drill program is to test as many of the known veins as possible, as well as several of the significant gold-in-soil anomalies found between known vein families. The holes are testing veins hosted by the diorite and the hornfels zone adjacent to the contact. This drill phase is restricted to the main vein swarm in the northwestern part of the property as the more logistically challenging southeastern vein group will require more time for preparing access.

Additional assay results have been received for hole P001001. Newly reported intervals include a 1.3-metre intercept from 381.7 metres depth at 21.18 g/t gold, which includes the highest individual assay received to date from the drilling, 0.50 metre at 71.9 g/t gold with 60.2 g/t silver. The new results bring the total number of significantly mineralized veins in the hole to nine. There is excellent continuity of veins and gold grade between the shallow mine workings.

Hole P002001 was drilled to the northeast from the same pad to test an area with little known mineralization and only one small historical mine. It was designed as the first test of the 25-plus gold-in-soil anomalies seen throughout the property. Numerous new veins were intersected, including the probable western extensions of two of the east-west-trending family which outcrops further to the east. Though there were no very high-grade intersections; the hole is extremely important in that it validates the soil sampling technique used and elevates the potential of multiple additional areas with no outcropping gold mineralization.

Hole P003002 was drilled to the north across the family of east-west-trending veins in an area of sparsely developed historical mining. The hole was designed to test the east-west vein corridor in the area of the diorite-sediment contact. Two seven-metre-thick to eight-metre-thick zones were intersected which were characterized by intense replacement by quartz-carbonate veinlets (up to 70 per cent of rock volume) with disseminated sulphide. A third nine-metre-thick zone comprising an intensely brecciated mafic dike with hydrothermal silica cement was also uniformly mineralized at low grade. In aggregate, these zones each averaged less than two g/t gold but the varied styles of mineralization indicate potential for thicker mineralized zones in several other areas of the property.

Hole P004002 was drilled to test for an eastern extension of the east-west vein family in the sediments more than 200 metres out from the diorite contact. Several thin veins were intersected with grades up to 18.55 g/t gold in addition to a nine-metre thick zone of intense quartz-carbonate veining which averaged 1.5 g/t gold. As in hole 003, thicker zones hosted by different rock types are showing intense veining and gold mineralization associated with the east-west vein trend in the northeastern part of the property at what the company assumes is near the outer limit of the Abriaqui hydrothermal system.

Plan going forward

Phase 1 drilling should be concluded by January, 2021. Planning for phase 2 will depend on results, as well as continuing surface exploration and soil sampling. It is likely to include a significant component of follow-up and offset drilling of the high-grade vein intersections and first pass tests of several of the larger soil anomalies. High-grade vein, soil gold and geophysical targets in the as-yet undrilled southeastern licence will also be prioritized subject to permitting. Geological work will include follow-up mapping and expanded soil sampling in the area of the southeast magnetic/soil anomaly. Additionally, the company plans to conduct a first pass reconnaissance in the large area of the new Polo acquisition (expected Q1 2021).

Technical information

Stuart Moller, vice-president of exploration and a director of the company and a qualified person for the purposes of National Instrument 43-101 (professional geoscientist), has prepared or supervised the preparation of the technical information contained in this press release. Mr. Moller has more than 40 years of experience in exploration for precious and other metals, including 10 in Colombia, and is a fellow of the Society of Exploration Geologists.

Drill core sampling is done in accordance with industry standards. The HQ and NQ diametre core is sawed and half core samples are submitted to the laboratory. The other half core, along with laboratory coarse reject material and sample pulps, are stored in secure facilities on site and/or in the sample prep lab. Following strict chain of custody protocols, the samples are driven to the ISO 17025:2017 certified ALS Laboratory sample preparation facility in Medellin and ALS ships the prepared pulps to its assay laboratory in Lima, Peru. Blanks, duplicates and certified reference standards totalling 15 per cent of the total samples are inserted into the sample stream. To date, no material quality control issues have been detected. Gold is analyzed by fire assay with 50-gram charges for grades in excess of 10 grams per tonne and the additional elements are analyzed by ICP with appropriate follow-up for overlimits.

Reported grade intervals are calculated using uncut gold values at a minimum grade cut-off of one gram per tonne gold. The one gram level was chosen as being reasonable for reporting purposes but it has no necessary relation to potential future resource/reserve calculations. The current database is too small to calculate statistically valid levels for cutting of high grade. Maximum sample length is one metre and the length of sub-cut-off grade core contained within a given interval is restricted to one metre. Reported sample and interval widths are based on lengths of individual samples in core and do not necessarily represent true widths of mineralization. True widths will often be less than the quoted interval lengths.

The currently reported results may not represent full results for a given drill hole as some additional sampling may be required. All material drill results will be publicly reported in due course regardless of when they are received.

The comparison between Abriaqui and the nearby Buritica project is meant only to indicate the similarities between the two in terms of geological setting. Fenixoro does not imply that exploration results and/or economic characteristics of a potential future mine at Abriaqui will be similar to those seen at Buritica.

About Fenixoro Gold Corp.

Fenixoro is a Canadian company focused on acquiring gold projects with world-class exploration potential in the most prolific gold-producing regions of Colombia. Fenixoro’s flagship property, the Abriaqui project, is located 15 kilometres (km) west of Continental Gold’s Buritica project in Antioquia state at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years, including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa. As documented in a National Instrument 43-101 technical report on the Abriaqui project, the geological characteristics of Abriaqui and Buritica are very similar. The report also documents the high-gold grade at Abriaqui with samples taken from 20 of the veins assaying greater than 20 g/t gold. A phase 1 drilling program has begun at Abriaqui following the completion of surface and underground geological mapping and sampling, as well as a preliminary magnetometry survey.

Fenixoro’s vice-president of exploration, Mr. Moller, led the discovery team at Buritica for Continental Gold from 2007 to 2011. At the time of its latest report, the Buritica mine contains measured plus indicated resources of 5.32 million ounces of gold (16.02 million tonnes grading 10.32 g/t) plus a 6.02-million-ounce inferred resource (21.87 million tonnes grading 8.56 g/t) for a total of 11.34 million ounces of gold resources. Buritica began formal production in November, 2020, and has expected annual average production of 250,000 ounces at an all-in sustaining cost of approximately $600 (U.S.) per ounce.

We seek Safe Harbor.

© 2020 Canjex Publishing Ltd. All rights reserved.

Highlights:

• Results for main-zone drilling from pad MZ34 extend depth of mineralization to 700 metres below surface with a 23.67 m true width intersection.
• A total of 24 holes for 11,210 m were completed during the season with all core samples either received by, or on their way to, the laboratory for analysis.

Main-zone results

Assay results have been received for a further four holes drilled from two pads. The results are reported in the included table.

As presented in the included table, mineralization was intersected over 58.2 m of hole YKDD20-163. This intersection is the deepest drilled on the project to date, at 700 m below surface. The mineralization is wide, with a true width of 23.67 m and an average grade of 8.15 per cent combined lead and zinc with 24 grams per tonne silver. Within this, there are several high-grade zones, including a 4.62 m true width of 19.24 per cent combined lead and zinc with 67 g/t silver.

While most of the results from hole YKDD20-159 were disclosed in a previous release (dated Oct. 28, 2020), one additional deeper interval has now been received. This is presented in the included table.

The last of the samples from the 2020 drill program are presently on their way to the laboratory for processing. These results, along with those already submitted for analysis, will be reported when received.

                                     DRILL RESULTS
  
                                            True          Lead +        
                     From      To  Length  width  Silver    zinc   Lead   Zinc  Copper    Mn                    
Pad          Hole     (m)     (m)     (m)    (m)   (g/t)     (%)    (%)    (%)     (%)   (%) 
  
MZ34   YKDD20-159  137.00  138.00    1.00   0.45   46.80    4.41   3.46   0.95    0.01  0.06  
                   530.90  532.00    1.10   0.50   41.96   22.67   2.18  20.49    0.02  0.18  
                   537.00  544.45    7.45   3.38   60.55   32.38   9.20  23.18    0.04  2.36  
                   567.65  575.10    7.45   3.38   72.85   18.72   6.31  12.41    0.02  3.51  
                   604.80  605.30    0.50   0.23   17.75   12.97   2.17  10.80    0.01  1.00  
                   637.40  639.20    1.80   0.82   10.57    2.83   1.56   1.27    0.01  2.99  
      New results  660.00  662.50    2.50   1.15   25.02    4.18   1.34   2.84    0.10  2.33  
       YKDD20-163   662.4   720.6    58.2  23.67   24.10    8.15   2.31   5.84    0.03  2.22  
        Including  670.75  682.10   11.35   4.62   67.45   19.24   3.17  16.07    0.10  2.99  
        Including  674.00  675.10    1.10   0.45   215.5   51.40   4.92  46.48    0.05  0.41  
        Including  688.45  692.25    3.80   1.55   56.09   20.74  11.47   9.27    0.05  3.16  
        Including  698.50  700.95    2.45   1.00   33.77   14.46   5.31   9.15    0.01  3.91  
MZ3X   YKDD20-161  354.70  356.00    1.30   1.02   49.60    6.98   6.46   0.52    0.09  3.00  
                   360.40  362.25    1.85   1.45   17.67   13.80   1.59  12.21    0.02  3.69  
       YKDD20-164  417.00  418.70    1.70   1.12   20.79    9.03   1.71   7.32    0.02  3.12  

Structural geologist Chris Buchanan’s work suggests that mineralization at the central target has been offset by an east-west fault. This explains the apparent northeasterly offset of mineralization and why sulphides were not intersected in this area during the 2019 drilling. Unfortunately, this was not able to be tested this year and will be a priority next season.

The drill holes reported in this press release were drilled using HQ (63.5 millimetres) diamond drill bits. In a few cases, where the drill lacked sufficient power to drill this large core at depth, the hole was reduced to NQ (47.6 mm). The core was logged, marked up for sampling and then divided into equal halves using a diamond saw on site. One-half of the core was left in the original core box. The other half was sampled and placed into sealed bags, which were in turn placed into larger bags closed with security seals prior to being transported to CF Mineral Research Ltd. in Kelowna, B.C.

At CF Minerals, the drill core and prospecting rock samples were dried prior to crushing to minus 10 mesh. The samples, which averaged over three kilograms, were then mixed prior to splitting off 800 grams. The 800 g splits were pulverized to minus 200 mesh and a 250 g split was sent for assay. Quality-control procedures included running a barren sand sample through both the crusher and pulverizer between each sample to ensure no intersample contamination occurred. Silica blanks were inserted along with certified reference samples. These quality-control samples were each inserted approximately every 20 samples.

ALS Chemex in Vancouver assayed the samples using a four-acid digestion with an ICP-MS finish. The 48-element ME-MS61 technique was used to provide a geochemical signature of the mineralization. Where lead, zinc or copper values exceeded 1 per cent, the Pb-OG62, Zn-OG62 or Cu-OG62 techniques were used. These have upper limits of 20 per cent lead, 30 per cent zinc and 50 per cent copper, respectively. Samples with lead and zinc values over these limits were then analyzed by titration methods Pb-VOL70 and Zn-VOL50. Where silver samples exceeded 100 g/t, the Ag-OG62 technique was used, which has an upper limit of 1,500 g/t. When this was exceeded, the Ag-GRA21 technique was used. Gold was assayed for using Au-ICP22, which has an upper limit of 10 g/t; where exceeded, the Au-GRA22 technique was used. The overlimit analyses (and the overlimit-overlimit analyses) contributed to delays in receiving final assay results.

The technical information and results reported here have been reviewed by Chad Ulansky, PGeol, a qualified person under National Instrument 43-101, who is responsible for the technical content of this release.

We seek Safe Harbor.

© 2020 Canjex Publishing Ltd. All rights reserved.

“The announcement today is indeed a major milestone, and we are proud at having played a key role in this accomplishment. We are all extremely excited to have the nanoreactor up and running, on schedule and on budget, particularly during these trying times,” said P. Peter Pascali, chief executive officer and chairman of PyroGenesis Canada. “The next major step is to get qualified samples into end user’s hands, which we are pushing to do before year-end, or shortly afterwards. The more we progress with the nanoreactor, the more it seems to us to be a real game changer. It may very well become the gold standard for making nanosilicon for the battery industry. Success to date bodes well for the future, and today’s announcement is one major step in that direction.”

Purevap NSiR low-cost spherical silicon materials — a game-changing leap

Despite strong research and massive investment in silicon materials for batteries, current manufacturing processes are simply not scalable or commercially viable. With a capability of producing tailor-made silicon materials within a wide range (from fewer than 0.2 micrometre to five micrometres), the Purevap NSiR represents a game-changing leap forward in resolving the issues of commercial viability and scalability.

With the Gen1 Purevap NSiR now operational, HPQ Nano will be uniquely positioned to be able to offer industry participants a wide spectrum of products for testing, while phase 2 of the Purevap NSiR development program advances toward the confirmation of the scalability of the process in order to increase capacity to meet the anticipated emerging demands from battery, electric vehicle and other markets looking for nanosilicon materials.

“First, let me thank the PyroGenesis team for getting the Gen1 Purevap NSiR operational, on time and on budget, during these challenging times. This is a major and critical milestone for us. Having the capability to produce silicon nanopowders and nanowires will allow HPQ to be at the forefront of nanosilicon for batteries as we continue working on scaling up the capacities of our next generation of Purevap NSiR reactors. This is another demonstration of the depth and flexibility of HPQ’s R&D [research and development] consortium as we strive to produce products for renewable-energy storage participants and electric vehicle manufacturers who are searching for cost-effective ways of increasing the silicon contained in their batteries,” said Bernard Tourillon, president and chief executive officer of HPQ-Silicon Resources. “Silicon’s potential to meet energy storage demand is undeniable, generating massive investments and serious industry interest. We are very confident that demand for the silicon materials we will produce, with our low-cost scalable processes, will be in high demand by batteries and EV manufacturers in this renewable-energy revolution.”

About PyroGenesis Canada Inc.

PyroGenesis Canada is a leader in the design, development, manufacture and commercialization of advanced plasma processes and products. The company provides its engineering and manufacturing expertise and its turnkey process equipment packages to customers in the defence, metallurgical, mining, advanced material (including 3-D printing) and environmental industries. With a team of experienced engineers, scientists and technicians working out of its Montreal office and 3,800-square-metre manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. The company’s core competencies allow PyroGenesis to provide innovative plasma torches, plasma waste processes, high-temperature metallurgical processes and engineering services to the global marketplace. PyroGenesis Canada’s operations are ISO 9001:2015 and AS9100D certified.

About HPQ-Silicon Resources Inc.

HPQ-Silicon Resources is a Canadian innovative silicon solution provider.

Silicon, also known as silicon metal, is one of today’s key strategic materials needed for the decarbonization of the economy and the renewable-energy revolution.

Silicon is the most abundant element in earth’s crust, but does not exist in its pure state and must be extracted from quartz (silicon dioxide) in what has historically been a capital-intensive and energy-intensive process. HPQ-Silicon is building a portfolio of silicon-based products using innovative, scalable processes. The target objective is to produce high-value speciality silicon products using technologies that will reduce energy consumption, greenhouse gases and carbon footprints.

We seek Safe Harbor.

© 2020 Canjex Publishing Ltd. All rights reserved.

Simon Dyakowski, chief executive officer of Aztec, stated: “We are pleased to have finalized the Cervantes joint venture agreement with Kootenay and look forward to recommencing exploration activities at the project in 2021. Aztec’s first drill program at Cervantes resulted in the discovery of a large, well mineralized gold oxide zone at the California zone, one of several prospective porphyry gold-copper targets on the property. Aztec and Kootenay will now form a joint venture management committee with Aztec as the operator of the joint venture. The committee will meet in the new year to review and approve the next phase of exploration to unfold the full potential of this exciting exploration asset.”

James McDonald, president and CEO of Kootenay, added: “We are excited about formulating the first exploration plan under the JV agreement and look forward to further testing of the California oxide gold zone and larger gold copper porphyry potential associated with it. The initial acquisition and identification of Cervantes is the result of the project generative work by Kootenay’s technical team. It is an example of the quality of early stage projects within the company’s pipeline of projects that includes several properties in Mexico and Canada currently available for option.”

About Kootenay Silver Inc.

Kootenay is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre region of Mexico and in British Columbia, Canada. Supported by one of the largest junior portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices. The company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects located in the states of Sonora, Sinaloa and Chihuahua, Mexico, respectively.

We seek Safe Harbor.

© 2020 Canjex Publishing Ltd. All rights reserved.

The offering is being conducted in connection with the previously announced merger transaction, whereby Serengeti will acquire all of the shares of Sun Metals on the basis of 0.43 common shares of Serengeti (on a preconsolidation basis) for each share of Sun Metals held, to create a premier Canadian multiasset copper-gold developer. Proceeds from the issue and sale of the subscription receipts will be used to advance the collective portfolio of copper-gold exploration and development assets in British Columbia, and for general working capital purposes.

The subscription receipts were issued pursuant to a subscription receipt agreement entered into by Sun Metals, Serengeti, the co-lead underwriters and Computershare Trust Company of Canada as subscription receipt agent. Pursuant to the subscription receipt agreement, the gross proceeds of the offering (less 50 per cent of the underwriters’ cash commission and all of the underwriters’ expenses) will be held in escrow pending satisfaction of certain conditions, including, amongst others, (a) the satisfaction or waiver of each of the conditions precedent to the transaction; and (b) the receipt of all required shareholder and regulatory approvals in connection with the transaction and the offering, including the conditional approval of the TSX Venture Exchange. If the escrow release conditions have not been satisfied on or prior to March 31, 2021, the holders of subscription receipts will be returned a cash amount equal to the issue price of the subscription receipts and any interest that has been earned on the escrowed funds.

Upon the satisfaction of the escrow release conditions prior to March 31, 2021, each subscription receipt will automatically convert into one unit of Sun Metals, which shall be exchanged, adjusted or converted into securities of Serengeti at the exchange ratio, on a postconsolidation basis, upon completion of the transaction. The number of units of Serengeti to be exchanged or adjusted will reflect the previously announced consolidation, whereby immediately prior to the closing of the transaction, Serengeti will consolidate its common shares on a two for one basis, subject to the receipt of all necessary approvals.

Each unit will consist of one common share of Sun Metals and one-half of one common share purchase warrant. Each full warrant will be exercisable to acquire one common share of Sun Metals for a period of 24 months from the closing of the offering, at an exercise price of 18 cents. Each warrant is subject to acceleration in the event that the volume weighted average trading price of the common shares of Sun Metals on the TSX Venture Exchange is equal to or greater than 30 cents for 20 consecutive trading days. All prices to be adjusted by the exchange ratio upon completion of the transaction. It is expected that an aggregate of 17,802,000 postconsolidation shares of Serengeti will be issued and the warrants will be adjusted to entitle the holders to acquire an additional 8,901,000 postconsolidation shares of Serengeti at an approximate effective price of 84 cents per share, on or before Dec. 17, 2022, subject to agreed acceleration provisions, on conversion of the subscription receipts and following completion of the transaction.

The subscription receipts were offered by way of a private placement in all the provinces of Canada 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 subscription receipts and the common shares, warrants and warrant shares underlying the subscription receipts, will be subject to a statutory four-month hold period in accordance with Canadian securities legislation, or until such securities are exchanged or adjusted pursuant to the transaction.

Certain insiders of Sun Metals acquired subscription receipts pursuant to the offering and as such the offering is considered a related party transaction with the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special transactions. Neither Sun Metals nor, to the knowledge of Sun Metals after reasonable inquiry, a related party, has knowledge of any material information concerning Sun Metals or its securities that has not been generally disclosed. Sun Metals has relied on exemptions from the formal valuation and minority approval requirements of sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation, based on a determination that the fair market value of the participation in the offering by insiders will not exceed 25 per cent of the market capitalization of the Sun Metals, as determined in accordance with MI 61-101. Sun Metals did not file a material change report more than 21 days before the expected closing of the offering because the details of the participation therein by related parties of Sun Metals were not settled until shortly prior to closing of the offering and the parties wished to close on an expedited basis for business reasons.

About Serengeti Resources Inc.

Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid record of exploration success. The company is currently advancing its majority-owned, advanced Kwanika copper-gold project and exploring its extensive portfolio of properties in north-central British Columbia.

About Sun Metals Corp.

Sun Metals is advancing its 100-per-cent-owned flagship, high-grade Stardust project, located in north-central British Columbia, Canada. Stardust is a high-grade polymetallic carbonate replacement deposit with a rich history. Sun Metals also owns the Lorraine copper-gold project, and the OK copper-molybdenum project.

We seek Safe Harbor.

© 2020 Canjex Publishing Ltd. All rights reserved.

Each unit consists of one non-flow-through common share of the share capital of the corporation and one-half of a warrant. Each warrant will entitle the holder thereof to acquire one additional common share of the share capital of the corporation until June 13, 2022, at a price of 23 cents.

All securities issued pursuant to this offering are subject to a hold period of four months and a day, ending on April 18, 2021, under applicable Canadian securities legislation. This offering has received conditional approval from the TSX Venture Exchange and remains subject to the final approval of the TSX Venture Exchange.

The proceeds of this offering will be used by the corporation for general corporate and working capital purposes, as well as an important diamond drilling program on the Cheechoo gold project. The Cheechoo property is located at Eeyou Istchee James Bay in the immediate vicinity of Newmont Corp.’s Eleonore gold mine. Please refer to the corporation’s website for more information on the Cheechoo project.

About Sirios Resources Inc.

Pioneer in the discovery of significant gold deposits in the Eeyou Istchee James Bay region of Quebec, Canada, Sirios focuses its work mainly on its Cheechoo gold discovery, while actively exploring the high auriferous potential of its other properties.

We seek Safe Harbor.

© 2020 Canjex Publishing Ltd. All rights reserved.

Number of shares:  521,000 flow-through shares

Purchase price:  24 cents per share

Warrants:  521,000 share purchase warrants to purchase 521,000 shares

Warrant exercise price:  30 cents for a two-year period

Number of placees:  one placee

© 2020 Canjex Publishing Ltd. All rights reserved.

In connection with the private placement, the company may pay finders’ fees in cash or securities, or a combination of both, as permitted by the policies of the Toronto Stock Exchange.

The proceeds from the private placement will be used to incur eligible Canadian exploration expenses and flow-through mining expenditures, as defined under the Income Tax Act (Canada), that will be renounced in favour of the purchasers with an effective date of no later than Dec. 31, 2021. The funds are intended to be used to finance exploration programs on the company’s Prairie Creek mine, located in the Northwest Territories property. The private placement remains subject to TSX approval. Flow-through shares issued in the private placement will be subject to a four-month hold period under applicable Canadian securities laws.

About Norzinc Ltd.

Norzinc is a Toronto Stock Exchange-listed mine development company trading under the symbol NZC. Norzinc is developing its key project, the 100-per-cent-owned high-grade silver-zinc-lead Prairie Creek mine, located in the Northwest Territories. Norzinc also owns projects in Newfoundland that host several zinc-lead-copper-gold-silver deposits.

We seek Safe Harbor.

© 2020 Canjex Publishing Ltd. All rights reserved.

During the sampling activities, a DLA monitor was present to ensure that proper sampling procedures were adhered to at all times. In addition, Congressman Paul Gosar’s (R-AZ) field office staff, Penny Pew, visited the Wenden Stockpile in support of the project’s potential to create a domestic supply of manganese production, for which the U.S. has been 100% import-dependent since 1973. During the 2-day process, a total of approximately 550 pounds of material was collected in 16 commercial-grade-heavy sealed buckets, with sample locations geo-tagged.

Sample Hole at Wenden Stockpile (December 9, 2020)

The Wenden Stockpile contains approximately 322,000 metric tons of low-grade manganese, which was purchased by the U.S. Government in the 1950s and 1960s. The stockpile has been inactive due to the need of specialized processing methods to transform the low-grade manganese into useful forms of advanced manganese material. If American Manganese is successful in its bench-scale testing project, it could provide an opportunity to build a processing facility to transform the sub-economic manganese resources into a valuable source of EMM.

There is no substitute for manganese in the production of steel, and as BHP Billiton’s former CEO Brian Gilbertson has said, “You cannot make steel without manganese and if you cannot make steel – the world stops.”

“We are thrilled to complete the sampling work ahead of schedule, especially as we get into the holiday season,” said Larry Reaugh, President and CEO of American Manganese. “In the awarded project timeline, our next step will be to conduct assays and leach tests on the samples, which we plan to report in the new year as data is received.”

About American Manganese Inc.

American Manganese Inc. is a critical metals company focused on recycling of lithium-ion batteries (RecycLiCo™) and the production of electrolytic manganese metal from low grade U.S. resources. The recycling process provides high extraction of cathode metals, such as lithium, cobalt, nickel, manganese, and aluminum at high purity, with minimal processing steps. American Manganese Inc. aims to commercialize its breakthrough RecycLiCo™ patented process and become an industry leader in recycling cathode materials from lithium-ion battery manufacturing waste.

On behalf of Management
AMERICAN MANGANESE INC.

Contact:
Larry W. Reaugh
President and Chief Executive Officer
Telephone: 778 574 4444
Email: lreaugh@amymn.com
www.americanmanganeseinc.com
www.recyclico.com

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 release. This news release may contain “forward-looking statements”, which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.

SOURCE: American Manganese Inc.

View source version on accesswire.com:
https://www.accesswire.com/621479/American-Manganese-Shipped-Manganese-Samples-from-Wenden-National-Defense-Stockpile-in-Arizona

© 2020 Canjex Publishing Ltd. All rights reserved.