Category: Energy

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Base Metals Emx Royalty Energy Junior Mining Precious Metals

EMX Royalty Announces First Quarter 2023 Results

Vancouver, British Columbia–(Newsfile Corp. – May 15, 2023) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to report results for the quarter ended March 31, 2023 (“Q1-2023”). The Company’s filings for the quarter are available on SEDAR at www.sedar.com, on the U.S. Securities and Exchange Commission’s website at www.sec.gov, and on EMX’s website at www.EMXroyalty.com. Financial results were prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board. All dollar amounts in this news release are in USD unless otherwise noted.

HIGHLIGHTS

Financial Updates for the Three Months Ended March 31, 2023

  • Revenue and other income for the three months ended March 31, 2023 was $2,742,000 (Q1-2022 – $1,749,000). Adjusted revenue and other income[1] of $4,968,000 (Q1-2022 – $3,209,000) included $2,226,000 (Q1-2022 – $1,460,000) in income for the Company’s share of royalty revenue from the Caserones Mine (effective) royalty interest in Chile.
  • Net loss for the three months ended March 31, 2023 was $3,726,000 (Q1-2022 – income of $18,592,000). The prior year comparative quarter included a net settlement paid by Barrick Gold Corporation of $18,825,000.
  • Cash used in operating activities for the three months ended March 31, 2023 was $2,832,000 (Q1-2022 – cash provided by operating activities of $16,270,000). Adjusted cash1 used in operating activities for the three months ended March 31, 2023 was $1,935,000 (Q1-2022 – adjusted cash provided by operating activities of $17,172,000).
  • As at March 31, 2023, EMX had cash and cash equivalents of $9,089,000 (December 31, 2022 – $15,508,000), $3,517,000 in cash held in trust to acquire an additional 2.263% ownership in SLM California SpA, investments, long-term investments and loans receivable valued at $15,116,000 (December 31, 2022 – $14,561,000) and loans payable of $40,949,000 (December 31, 2022 – $40,489,000).

Corporate Updates

Timok Dispute Update
On January 27, 2022 the Company announced that it had suspended the filing of a Notice of Arbitration to Zijin Mining Group Ltd (“Zijin”) regarding its royalty agreement covering the Timok project in Serbia, which includes the producing Cukaru Peki copper and gold mine. This suspension followed EMX’s previous announcement of its intention to file the Notice of Arbitration to formally dispute the royalty rate as defined under the Royalty Agreement (see EMX news release dated December 17, 2021). Discussions with Zijin have since proved amicable and productive and continued through Q1 2023. Both companies are expecting to execute a modified royalty agreement in 2023.

Acquisition of Additional Royalty Interest on Caserones
Subsequent to March 31, 2023, EMX acquired an additional 2.263% ownership in the underlying Caserones royalty holder, Sociedad Legal Minera California Una de la Sierra Peña Negra (“SLM”), for cash consideration of $3,517,000 pursuant to agreements with existing shareholders of SLM. The acquisition provides EMX with a further 0.044% (effective) net smelter royalty (“NSR”) interest in the Caserones property, increasing the Company’s NSR royalty interest to 0.7775%.

Royalty and Royalty Generation Updates

During Q1 2023, the Company’s royalty generation business was active in North America, South America, Europe, Turkey, Australia and Morocco. The Company spent $5,730,000 (Q1-2022 – $4,262,000) on royalty generation costs and recovered $2,884,000 (Q1-2022 – $2,128,000) from partners. Royalty generation costs include exploration related activities, technical services, project marketing, land and legal costs, as well as third party due diligence for acquisitions. During Q1 2023, the Company also completed four partnerships across the portfolio while continuing to replace partnered properties with new royalty generation projects.

Producing Royalties6
Advanced Royalties11
Exploration Royalties153
Royalty Generation Properties98



Figure 1

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1508/166176_fig1emx.jpg.

Highlights from Q1 2023 include the following:

  • In the US, the Company’s royalty portfolio advanced with more than 10 partner-funded work programs, including 2 drill projects, and the expansion of several properties through the staking of new claims. The Company continued to advance projects retained by South32 Limited, including the ongoing drill program at the Copper Springs project in Arizona’s Globe-Miami district.
  • EMX executed definitive agreements to sell the Company’s a) portfolio of 14 early stage precious and base metal projects in Idaho (i.e., ranging from grassroot to historical resource properties) and b) wholly-owned core drilling subsidiary, Scout Drilling LLC, to Scout Discoveries Corp. (see EMX news release dated March 8, 2023). The terms of the definitive agreements provide EMX with an equity interest, retained 3.25% NSR royalty interests, AAR payments, and certain milestone payments as the portfolio is advanced. The portfolio represents the largest unpatented claim holdings in Idaho.
  • In Canada, EMX programs advanced available properties in the portfolio as partners conducted multiple field programs, including drill programs on EMX royalty properties. EMX received C$16,000 in cash payments and C$Nil in share equity payments during the quarter.
  • EMX’s Latin American royalty portfolio advanced with work programs that included drilling at the Diablillos project’s JAC Zone silver-gold discovery by AbraSilver Resource Corp., the commencement of a drill program at Pampa Metals Corporation’s Block 4 Buenavista target, as well as updated resource estimates at Aftermath Silver Ltd.’s Berenguela polymetallic CRD project and GR Silver Mining Ltd’s San Marcial epithermal silver project.
  • Lundin Mining Corporation (“Lundin”) entered into a binding purchase agreement with JX Nippon to acquire fifty-one percent (51%) of the issued and outstanding equity of MLCC, the Caserones mine operator (see Lundin news release dated March 27, 2023). Lundin will also have the right to acquire up to an additional 19% interest in Caserones.
  • In Northern Europe the Company continued to develop its portfolio of projects, acquiring new gold and battery metals (nickel, copper and cobalt) royalty generation projects totaling 15,456 hectares, and partnered four available properties. Partner funded drill programs were completed by Capella Minerals Ltd at EMX’s Kjoli royalty property in Norway and by Kendirck Resources PLC at EMX’s Espedalen royalty property in Norway. Results from those programs are pending. Drilling also commenced at the Mo-I-Rana royalty property in Norway at the end of Q1 (operated by Mahvie Minerals AB, a private Swedish corporation).
  • Royalty generation programs proceeded in the Balkans and in Morocco, where multiple exploration license applications have been filed by the Company. New target areas are being assessed for further acquisitions.

Investment Updates

As at March 31, 2023, the Company had marketable securities of $9,421,000 (December 31, 2022 – $9,966,000), and $4,678,000 (December 31, 2022 – $4,591,000) in private investments. The Company will continue to generate cash flow by selling certain of its investments when appropriate. During the three months ended March 31, 2023 EMX generated $776,000 (Q1-2022 – $662,000) from the sale of investments. Much of the investment portfolio was derived from strategic investments including Premium Nickel Resources Ltd., and royalty deals completed as part of our organic royalty generation business.

OUTLOOK

The 2023 year will continue to see revenue and other income coming from our cash flowing royalties, including Leeville in Nevada, Gediktepe in Turkey, potentially Timok in Serbia (pending conclusion of discussions with Zijin), and our effective royalty interest on Caserones in Chile. As in previous years, production royalties will continue to be complemented by option, advance royalty, and other pre-production payments from partnered projects across the global asset portfolio. As a royalty holder, the Company has limited, if any, access to information on properties for which it holds royalties. Additionally, the Company may receive information from the owners and operators of the properties, which the Company is not permitted to disclose to the public pursuant to the underlying agreement or the information is not NI 43-101 compliant. Accordingly, the Company has not, and does not anticipate that it will have the ability to, provide guidance or outlook as to future production.

The Company will continue to strengthen its balance sheet over the course of the year by looking to retire portions of our long-term debt, continuing to evaluate equity markets, and the ongoing monetization of the Company’s marketable securities.

EMX is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties that provide opportunities for additional cash flow, as well as exploration, development, and production success.

Qualified Person. Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on North America and Latin America. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on Europe, Turkey, and Australia.

About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, and also trade on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.

For further information contact:

David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com

Scott Close
Director of Investor Relations
Phone: (303) 973-8585
SClose@EMXroyalty.com

Isabel Belger
Investor Relations (Europe) Phone: +49 178 4909039
IBelger@EMXroyalty.com

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

Forward-Looking Statements

This news release may contain “forward-looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the year ended December 31, 2022 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2022, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.

[1] Adjusted revenue and other income and adjusted cash provided by (used in) operating activities are non-IFRS financial measures with no standardized meaning under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Refer to the “Non-IFRS financial measures” section on page 23 of the Q1 2023 MD&A for more information on each non-IFRS financial measure.

Categories
Base Metals Energy Junior Mining Precious Metals

Terra Balcanica Appoints Business Development Officer

Terra Balcanica Resources Corp.
Terra Balcanica Resources Corp.

Vancouver, British Columbia, May 15, 2023 (GLOBE NEWSWIRE) — Terra Balcanica Resources Corp. (“Terra” or the “Company”) (CSE:TERA) announces the appointment of Rodney Stevens as its Business Development Officer.

Mr. Stevens is a CFA Charterholder with over a decade of experience in the capital markets, first as an investment analyst with Salman Partners Inc., and subsequently as a merchant and investment banker. While at Salman Partners, he was proclaimed the 2007 top-rated analyst for the metals and mining industry by StarMine. Mr. Stevens was also a portfolio manager registered with Wolverton Securities Ltd. and over the course of his career, he has been instrumental in assisting financings, mergers and acquisitions worth over C$1 billion in transactional value.

In consideration of his business development efforts, the Company will grant Mr. Stevens options and other compensation at a future date as appropriate, at the discretion of the Board of Directors.

Terra Balcanica CEO, Dr. Aleksandar Mišković, commented: “Terra continues to add high quality personnel to its senior management team. Mr. Stevens is superbly knowledgeable about the North American precious metal commodity space and in particular, silver-focused, mineral exploration industry. He shares the common vision of Terra as a prime European silver discovery explorer and his capital markets insight will be crucial as we progress up the inflection point of our corporate development. I welcome Rod to the roster and look forward to working with him in anticipation of exciting 2023 drill results.”

About the Company
Terra Balcanica is a polymetallic exploration company targeting large-scale mineral systems in the Balkans of southeastern Europe. The Company has 90% interest in the Viogor-Zanik Project in eastern Bosnia and Herzegovina, 100% of the Kaludra and Ceovishte mineral exploration licences in Serbia. The Company emphasizes responsible engagement with local communities and stakeholders. It is committed to proactively implementing Good International Industry Practice (GIIP) and sustainable health, safety and environmental management.

ON BEHALF OF THE BOARD OF DIRECTORS

Terra Balcanica Resources Corp.

Aleksandar (Alex) Mišković
President and CEO

For further information, please contact amiskovic@terrabresources.com, or visit our website at www.terrabresources.com.

Cautionary Statement

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of any of the words “will”, “intends” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. The Company does not undertake to update these forward-looking statements, except as required by law.

Categories
Base Metals Breaking Energy Granite Creek Copper Junior Mining Metallic Group

Granite Creek Copper Announces $1.35 Million Private Placement Financing

VANCOUVER, BC / ACCESSWIRE / May 12, 2023 / Granite Creek Copper Ltd. (TSX.V:GCX)(OTCQB:GCXXF) (“Granite Creek” or the “Company“) announces a non-brokered private placement financing (the “Offering”) of up to $1,350,000 through the issuance of 20,000,000 common shares and 10,000,000 warrants as follows:

  • Up to 10,000,000 units at a price of $0.06 per unit, with each unit consisting of one common share of the Company and one-half of one transferable warrant, with each full warrant allowing the holder to purchase one common share of the Company at a price of $0.12 per share for thirty-six months (“Common Share Units”);
  • Up to 10,000,000 flow-through units at a price of $0.075 per unit, with each unit consisting of one flow-through share of the Company and one-half of one transferable flow-through warrant, with each full flow-through warrant allowing the holder to purchase one flow-through share of the Company at a price of $0.15 per share for twenty-four months (“Flow-Through Units”);

The Company also announces the completion of an initial tranche of the Offering after having received subscription agreements for 6,400,000 of the Common Share Units and 4,436,677 of the Flow-Through units for a total funds of $716,750. The Company continues to see interest in the remainder of the Offering and expects to close a second and final tranche soon.

The Offering is being conducted on a non-brokered basis and all shares and warrants issued will be subject to a statutory hold period of four months and one day from the closing of the Offering. The Company may pay finder’s fees on a portion of the Offering, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation. Closing of the Offering is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and the acceptance of the TSX Venture Exchange.

The proceeds from the Offering will be used for exploration and development of the Company’s Carmacks Copper-Gold Project in Yukon, Canada, and for general working capital purposes. All of the gross proceeds from the issuance of the Flow-Through Shares and the flow-through shares comprising part of the Flow Through Units will be used to incur Critical Mineral Exploration Expenses (“CMEE”), and will qualify as “flow-through mining expenditures” under the Income Tax Act (Canada), which will be renounced to the purchasers of such shares, with an effective date no later than December 31, 2023, in an aggregate amount no less than the proceeds raised from the issue of the Flow-Through Shares and the flow-through shares comprising part of the Flow Through Units.

The Offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), as insiders of the Company may subscribe for Common Share Units and/or Flow-Through Units in the Offering. The Company relied on the exemptions in Section 5.5(b) – Issuer Not Listed on Specified Markets from the formal valuation requirements of MI 61-101 and relied on the exemption in Section 5.7(1)(a) – Fair Market Value Not More Than 25 Per Cent of Market Capitalization from the minority shareholder approval requirements of MI 61-101. The Company did not file a material change report at least 21 days before the expected closing date of the Offering as the aforementioned insider participation had not been confirmed at that time and the Company wished to close the Offering as expeditiously as possible.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America.The Shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.

About Granite Creek Copper

Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the exploration and development of critical minerals projects in North America. The Company’s projects consist of its flagship 176 square kilometer Carmacks project in the Minto copper district of Canada’s Yukon Territory on trend with the high-grade Minto copper-gold mine, operated by Minto Metals Corp., and the advanced stage LS Molybdenum project and the Star copper-nickel-PGM project, both located in central British Columbia. More information about Granite Creek Copper can be viewed on the Company’s website at www.gcxcopper.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Timothy Johnson, President & CEO
Telephone: 1 (604) 235-1982
Toll Free: 1 (888) 361-3494
E-mail: info@gcxcopper.com
Website: www.gcxcopper.com
Metallic Group: www.metallicgroup.ca

Forward-Looking Statements

Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Granite Creek Copper 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 or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Granite Creek Copper and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.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.

SOURCE: Granite Creek Copper Ltd.



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https://www.accesswire.com/754456/Granite-Creek-Copper-Announces-135-Million-Private-Placement-Financing

Categories
Base Metals Energy Junior Mining MillRock Resources Precious Metals

Alaska Energy Metals Announces Financing

Alaska Energy Metals Corporation
Alaska Energy Metals Corporation

Not for Distribution to United States Newswire Services or for dissemination in the United States

VANCOUVER, British Columbia, May 12, 2023 (GLOBE NEWSWIRE) — Alaska Energy Metals Corporation (TSX-V: AEMC, OTCQB: MLRKF) (“Alaska Energy Metals” or the “Company”) announces that it plans to raise funds through two concurrent equity private placements. One financing will use the listed issuer financing exemption under section 5A.2 of National Instrument 45-106 Prospectus Exemptions (the “LIFE PP Offering”) and the second financing will use other prospectus exemptions (the “Standard Equity Offering”).

LIFE PP Offering

Under the LIFE PP Offering, minimum gross proceeds of CAD$1,799,000 and maximum gross proceeds of CAD$2,142,000 are to be raised through a non-brokered private placement. Under the LIFE PP Offering, a minimum of 6,425,000 common shares and maximum of 7,650,000 common shares will be issued at a price of CAD$0.28 per share. The proceeds of the LIFE PP Offering are intended to be used primarily for exploration on the Canwell block of claims on the Company’s Nikolai project where very high grade nickel – copper – gold – platinum group element mineralization is exposed at surface. There is an offering document related to the LIFE PP Offering that can be accessed under the Company’s profile at www.sedar.com and at www.alaskaenergymetals.com. Prospective investors should read this offering document before making an investment decision. The LIFE PP Offering is subject to receipt of TSX Venture Exchange acceptance.

Finder’s fees of up to 8% cash (which may instead be payable in common shares of the Company) and 8% finder’s warrants (the “LIFE PP Offering Finder’s Warrants”) may be paid in connection with the Life PP Offering. The LIFE PP Offering Finder’s Warrants will entitle the holder to purchase one Alaska Energy Metals common share at a price of $0.28 for a period of twelve months and will be non-transferable. A CAD$30,000 due diligence fee is also payable.

Standard Equity Offering

Under the Standard Equity Offering, the Company intends to raise gross proceeds of CAD$450,000 through a non-brokered private placement. If the full amount is raised, 1,607,143 common shares would be issued. Common shares of the Company will be sold at CAD$0.28 per share. The gross proceeds from the Standard Equity Offering will be used primarily to do metallurgical studies on drill samples (approximately CAD$300,000) collected from the Eureka zone of nickel – copper – cobalt – chrome – iron – platinum – palladium mineralization at the Company’s Nikolai project in Alaska. Most of the remainder of the gross proceeds raised will be used for road upgrade and extension permitting, wetlands studies, resource calculation preparation, marketing and general corporate purposes.

Finder’s fees of 6% cash and 6% finder’s warrants (the “Standard Equity Offering Finder’s Warrants”) may be paid in connection with the Standard Equity Offering. The Standard Equity Offering Finder’s Warrants will entitle the holder to purchase one Alaska Energy Metals common share at a price of $0.28 for a period of twelve months and will be non-transferable. Shares issued under the Standard Equity Offering will be subject to a four-month hold period. The Standard Equity Offering is subject to receipt of TSX Venture Exchange acceptance. Gregory Beischer, the Company’s president and chief executive officer, is the qualified person, as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects, responsible for, and having reviewed and approved, the technical information contained in this news release.

About Alaska Energy Metals
Alaska Energy Metals Corporation is focused on delineating and developing a large polymetallic exploration target containing nickel, copper, cobalt, chrome, iron, platinum, and palladium. Located in development-friendly central Alaska near existing transportation and power infrastructure, the project is well-situated to become a significant, domestic source of critical and strategic energy-related metals.

ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO

FOR FURTHER INFORMATION, PLEASE CONTACT:
Gregory A. Beischer, President & CEO
Toll-Free: 877-217-8978 | Local: 604-638-3164

Some statements in this news release may contain forward-looking information (within the meaning of Canadian securities legislation), including, without limitation, the completion of the LIFE PP Offering and Standard Equity Offering, the Company’s successful realization of adequate financing to explore and develop the Nikolai project and to achieve milestones successfully. The potential quantity and grade of mineralized rock targeted by Alaska Energy Metals is conceptual in nature. There has been insufficient exploration drilling to estimate a mineral resource, and it is uncertain if further exploration will result in the estimation of a mineral resource. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the statements. Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, the Company assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions, or changes in other factors affecting the forward-looking statements. If the Company updates any forward-looking statement(s), no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.

This news release does not constitute an offer for sale, or a solicitation of an offer to buy, in the United States or to any “U.S Person” (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “1933 Act”)) of any equity or other securities of the Company. The securities of the Company have not been, and will not be, registered under the 1933 Act or under any state securities laws and may not be offered or sold in the United States or to a U.S. Person absent registration under the 1933 Act and applicable state securities laws or an applicable exemption therefrom.

Categories
Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Files Financial Statements, MD&A and AIF for the Year Ended December 31, 2022

Nevada Copper Corp.
Nevada Copper Corp.

YERINGTON, Nev., May 11, 2023 (GLOBE NEWSWIRE) — Nevada Copper (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) today announced that it has filed its consolidated interim financial statements and management’s discussion and analysis (“MD&A”) for the quarter ended March 31, 2023.  These filings can be found on the Company’s website at www.nevadacopper.com and the Company’s SEDAR profile at www.sedar.com.

About Nevada Copper

Nevada Copper (TSX: NCU) is the owner of the Pumpkin Hollow copper project located in Nevada, USA with substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade Underground Mine and processing facility, which is undergoing a restart of operations, and a large-scale open pit PFS stage project.

Randy Buffington
President & CEO

For additional information, please see the Company’s website at www.nevadacopper.com, or contact:

Tracey Thom | Vice President, IR and Community Relations
tthom@nevadacopper.com
+1 775 391 9029

Categories
Base Metals Breaking Energy Junior Mining Metallic Group Metallic Minerals Precious Metals

Metallic Minerals Announces $6.3 Million Strategic Equity Investment by Newcrest Mining

VANCOUVER, BC / ACCESSWIRE / May 10, 2023 / Metallic Minerals Corp. (TSX.V:MMG)(OTCQB:MMNGF) (“Metallic Minerals” or the “Company”) is pleased to announce a strategic equity investment by a wholly-owned subsidiary of Newcrest Mining Limited (“Newcrest”) in the form of a non-brokered private placement, with the goal of advancing the Company’s La Plata copper-silver-gold-platinum group element alkalic porphyry project in Colorado, USA.

Pursuant to the private placement, Newcrest will complete a financing of $6.34 million, consisting of 15,838,593 units of Metallic Minerals at a price of $0.40 per unit, with each unit comprising one common share and 0.75 of a common share purchase warrant. This represents a 13% premium to the 20-day volume weighted average price of Metallic Minerals’ shares on the TSX-V on May 9, 2023. Each full warrant shall entitle Newcrest to purchase one common share at an exercise price of $0.55, providing $6.5 million in additional funding, if exercised. The warrants shall be exercisable for three years from the date of issue and contain a customary acceleration provision, which shall be effective if the common shares trade for a period of 20 consecutive trading days at or above $0.825 on the TSX-V.

Following closing of the investment, Newcrest will hold 9.5% of the issued and outstanding common shares of Metallic Minerals on a non-diluted basis and, including the warrants, 15.5% of the issued and outstanding common shares on a partially diluted basis.

Metallic Minerals CEO and Chairman, Greg Johnson, stated, “As an industry leader with extensive expertise in precious metals rich, alkalic porphyry systems, Newcrest was quick to recognize the geologic significance of the drill results from our 2022 campaign at La Plata. We are very pleased to welcome them as a new major shareholder. Newcrest’s investment is a strong endorsement of the technical merits and potential of the project and a vote of confidence in our experienced team. This funding will enable us to fast-track our planned expansion drilling to follow-up the success from 2022. This year is shaping up to be one of the most exciting in our company’s history, with an updated resource estimate in progress at La Plata and an inaugural resource at our Keno Silver project also underway.”

Metallic Minerals President, Scott Petsel, stated, “This is a transformational period for Metallic Minerals and the La Plata project. Newcrest brings key, relevant exploration and operational experience and success in deposits of very similar character to that of La Plata, particularly their Red Chris and Cadia-Ridgeway operations. Our technical team has developed a follow-up drill program for La Plata that we expect can rapidly begin to define the extent of the high-grade mineralization, which remains completely open to expansion from the discovery drilling in 2022. Hole 22-04 intersected 816 meters of continuous porphyry mineralization and ended in spectacular copper and precious minerals grades. We are eager to discover the extent to which that high-grade mineralization continues laterally and to depth and anticipate this new drilling will have a positive impact on the overall grade and value of the deposit. Our team is very much looking forward to working with Newcrest to advance these common exploration and development goals.”

Fraser MacCorquodale, Newcrest’s GM Exploration, stated, “We are excited to become a cornerstone investor in Metallic Minerals and to be able to contribute towards this promising copper and precious metal project in the United States. We look forward to collaborating with the experienced management team at Metallic Minerals to leverage our combined skills.”

In connection with the private placement, Metallic Minerals and Newcrest have entered into an investor rights agreement, pursuant to which Newcrest will be entitled to certain customary rights including participation in future equity issuances and a right to maintain its pro-rata position in the Company. Newcrest and the Company have also agreed to certain customary standstill and transfer restrictions.

In addition, a technical committee will be formed with representatives from Metallic and Newcrest, providing access to Newcrest’s substantial technical expertise in similar alkalic porphyry systems and underground bulk-tonnage, block-cave mining operations. Newcrest shall also have a right to appoint a director to Metallic Minerals’ board, upon exercise of the private placement warrants, if they hold at least 13% of the issued and outstanding shares of the Company.

Live Webinar

Metallic Minerals will be hosting a live webinar with guest, Byron King, on Thursday, May 11 at 10am PT | 1pm ET to discuss the outlook for battery and precious metals and the importance of exploration to be able to deliver the necessary critical minerals for the decade ahead, along with an overview on exploration plans for Metallic Minerals in 2023. To register, click here.

Net proceeds of the private placement are intended to be used for exploration and development activities at the Company’s La Plata project, future exploration and development activities, working capital and general and administrative expenses.

The private placement is expected to close, subject to customary conditions, upon acceptance by the TSX Venture Exchange. The common shares issued pursuant to the private placement will be subject to a four-month hold period from the date of issuance in accordance with applicable securities laws. No commissions or finder fees are payable in connection with the private placement.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Metallic Minerals Corp. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

About Newcrest Mining

Newcrest Mining Limited (ASX, TSX, PNGX: NCM) is one of the world’s largest gold mining companies with headquarters in Melbourne, Australia and operating mines in Australia, Canada and Papua New Guinea. Newcrest is a technical industry leader, with particular expertise in exploration, deep underground block caving and metallurgical processing. Newcrest is committed to creating a work environment where everyone can go home safe and healthy every day, and where everyone actively contributes to this outcome; operating and developing mines in line with strong environmental, social and governance practices; developing a diverse workforce; and developing and maintaining strong relationships with communities and governments.

About Metallic Minerals

Metallic Minerals Corp. is a leading exploration and development stage company focused on copper, silver, gold and other critical minerals in the La Plata mining district in Colorado, and silver and gold in the high-grade Keno Hill and Klondike districts of the Yukon. Our objective is to create shareholder value through a systematic, entrepreneurial approach to making exploration discoveries, growing resources, and advancing projects toward development.

At the Company’s La Plata project in southwestern Colorado the 2022 inaugural NI 43-101 mineral resource estimate identified a significant porphyry copper-silver resource containing 889 Mlbs copper and 15 Moz of silver. Results from 2022 expansion drilling intercepted the longest and highest-grade interval ever encountered at La Plata and one of the top intersections for any North American copper project in the past several years. An updated NI 43-101 resource estimate for the La Plata project incorporating these results is expected in Q2 2023.

In Canada’s Yukon Territory, Metallic Minerals has consolidated the second-largest land position in the historic high-grade Keno Hill silver district, directly adjacent to Hecla Mining’s operations, with more than 300 million ounces of high-grade silver in past production and current M&I resources. Hecla Mining Company, the largest primary silver producer in the USA and third largest in the world, completed the acquisition of Alexco Resources and their Keno Hill operations in September 2022. Hecla is targeting to start production at the Keno Hill operations by Q3 2023. Metallic is anticipating the announcement of inaugural mineral resource estimate at Keno Silver in the second half of 2023.

Metallic Minerals is also one of the largest holders of alluvial gold claims in the Yukon and is building a production royalty business by partnering with experienced mining operators, including Parker Schnabel of Little Flake Mining from the hit television show Gold Rush on the Discovery Channel.

All of the districts in which Metallic Minerals operates have seen significant mineral production and have existing infrastructure, including power and road access. Metallic Minerals is led by a team with a track record of discovery and exploration success on several major precious and base metal deposits in the region, as well as having large-scale development, permitting and project financing expertise. The Metallic Minerals team has been recognized for its environmental stewardship practices and is committed to responsible and sustainable resource development.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Website: www.mmgsilver.com Phone: 604-629-7800
Email: cackerman@mmgsilver.com Toll Free: 1-888-570-4420

Forward-Looking Statements

This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, statements about expected results of operations, royalties, cash flows, financial position and future dividends as well as financial position, prospects, and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals 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 or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, unsuccessful operations, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration, development of mines and mining operations is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.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.

SOURCE: Metallic Minerals Corp.



View source version on accesswire.com:
https://www.accesswire.com/753909/Metallic-Minerals-Announces-63-Million-Strategic-Equity-Investment-by-Newcrest-Mining

Categories
Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Announces Significant Financing Package Supporting Completion Of The Underground Mine Ramp-Up; Significant Debt Reduction

Nevada Copper Corp.

Nevada Copper Corp.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

ALL FIGURES BELOW EXPRESSED IN U.S. DOLLARS UNLESS OTHERWISE NOTED

Up to $70 million of restart and ramp-up financing supported by significant shareholders:

  • $35 million bought deal public equity offering of Units with subscription commitments from Pala Investments Limited (“Pala”) and Mercuria Energy Holdings (Singapore) Pte. Ltd. (“Mercuria”)
  • $10 million available under the existing senior credit facility; Nevada Copper to seek lender consent for a further $10 million expansion to the senior credit facility
  • Up to $10 million of new loan proceeds from Pala
  • $5 million cash proceeds from warrant exercise by Mercuria

Up to an additional $45 million of funding to support the ramp-up of the Underground Mine:

  • $25 million funding facility from Pala and Mercuria, accessible at Nevada Copper’s option
  • Up to $15 million of stream deliveries financed through Triple Flag Precious Metals Corp. (“Triple Flag”) commitments under the senior credit facility, at the election of Nevada Copper
  • $5 million copper option to Mercuria

Equitization of $82 million of debt:

  • Retirement of all currently outstanding Pala debt under its credit facility with the Company via exercise of warrants held by Pala

Key Benefits of Transaction include:

  • Provides funding towards nameplate production capacity for the Underground Mine (as defined below) by the end of 2023
  • Exercise of Pala warrants strengthens balance sheet through $82 million reduction in debt
  • Demonstrates key shareholder support and confidence in the Underground Mine and other opportunities across the Pumpkin Hollow land holdings
  • Allows immediate mobilization of leading US underground mining contractor, Small Mine Development, LLC (“SMD”)

YERINGTON, Nev., May 09, 2023 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) is pleased to announce a financing package providing up to $115 million to advance the ramp-up of the Company’s Pumpkin Hollow underground mine (the “Underground Mine”), with the goal of achieving nameplate production capacity of 5,000 tons per day by the end of 2023.

Randy Buffington, President & CEO, commented, “We continue to make excellent progress on our capital and development projects in preparation for restart of mining in the second half of 2023. With significant progress delivered across capital projects, drilling and mine development, in addition to the mobilization of SMD as the underground mining contractor, we are moving swiftly to complete the ramp-up of the Underground Mine. With significant copper mineral reserves and resources and once operating at nameplate capacity, the Underground Mine will support the global drive towards electrification and a renewable energy future. This financing positions us to advance our ramp-up of the Underground Mine and meet our goal of achieving steady state operations by the end of 2023.”

The Company has entered into an agreement with Scotia Capital Inc. (“Scotiabank”), on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a bought deal basis 173,705,000 units of the Company (the “Units”) at a price of C$0.27 per Unit (the “Offering Price”) for aggregate gross proceeds of approximately C$47 million (the “Offering”).

Each Unit will consist of one common share of the Company (each a “Common Share”) and one-half of one Common Share purchase warrant (each full warrant, a “Warrant” and collectively the “Warrants”). Each Warrant will be exercisable for one Common Share (each a “Warrant Share”) at a price of C$0.34 per Warrant Share at any time for a period of 16 months following closing of the Offering.

The Company has granted the Underwriters an option, exercisable in whole or in part, at the sole discretion of the Underwriters, at any time for a period of 30 days from and including the closing of the Offering, to purchase from the Company up to an additional 15% of the Units sold under the Offering, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes (the “Over-Allotment Option”). The Over-Allotment Option may be exercised by the Underwriters to purchase additional Units, Common Shares, Warrants or any combination thereof. In the event the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering to the Company will be approximately C$54 million.

The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada, except Quebec. The Offering is expected to close on or about May 30, 2023, subject to the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange (the “TSX”) and applicable securities regulatory authorities.

The Company intends to use the net proceeds of the Offering and those contemplated under the Financing Agreement (as defined below) to continue funding the restart and ramp-up of the Company’s Pumpkin Hollow Underground Mine and for general corporate purposes, including working capital.

Pala, the Company’s largest shareholder, has agreed to purchase an aggregate of C$33.5 million of Units under the Offering (the “Pala Subscription Commitment”). If sufficient funds are raised in the Offering from third-party investors (other than Pala and Mercuria), Pala will not subscribe for its maximum Subscription Commitment, and may not subscribe for any Units if aggregate gross proceeds of C$40.2 million in the Offering are otherwise raised from such other third-party investors.

Mercuria, another significant shareholder of the Company, has agreed to subscribe for an aggregate of C$6.7 million of Units under the Offering (and together with the Pala Subscription Commitment, the “Subscription Commitments”) on the terms and conditions of the Offering.

Additionally, on May 9, 2023, the Company entered into a binding financing package agreement with Pala, Mercuria and TF R&S Canada Ltd., an affiliate of Triple Flag, the Company’s stream and royalty financing partner (the “Financing Agreement”), with respect to the transactions described below.

Warrant Exercises

In conjunction with the Offering, Pala has committed to the Company that it will exercise all of the Common Share purchase warrants (the “Pala Warrant Exercise”) that it has been issued in connection with the amendment and restatement of the credit facility (the “Credit Facility”) between the Company and Pala, entered into in October 2022 as part of the Company’s October 2022 financing (the “Pala Warrants”). Concurrent with closing of the Offering, Pala will exercise such maximum number of Pala Warrants such that, after giving effect to the Offering (including any subscription by Pala under the Subscription Commitment), Pala’s ownership interest in the Company will be 49.99% (the “Initial Pala Exercise”). The exercise price in respect of the Pala Warrant Exercise will be paid through the extinguishment of debt under the Credit Facility. Promptly following closing of the Offering (including the Initial Pala Exercise), Pala and the Company intend to submit customary filings to applicable U.S. governmental authorities pursuant to the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976 to permit Pala to exceed a 49.99% ownership interest in the Company (the “HSR Filings”). Following submission of the HSR Filings, an approximate 30-day regulatory review period will commence. Pala has committed to exercise the balance of the remaining outstanding Pala Warrants (the “Subsequent Pala Exercise”) promptly following expiry of the review period or clearance by the applicable regulatory authorities, whichever occurs earliest (the “HSR Clearance”). Upon the completion of the Subsequent Pala Exercise, all amounts outstanding under the Credit Facility will be deemed fully repaid. This will result in the approximately $82 million currently outstanding principal amount and accrued interest under the Credit Facility being repaid.

Additionally, in conjunction with the Offering, Mercuria has agreed to exercise $5 million of the Common Share purchase warrants that it was issued in connection with the Company’s October 2022 financing (collectively, the “Mercuria Warrant Exercise”, and together with the Pala Warrant Exercise, the “Warrant Exercises”).

Upon the completion of the Warrant Exercises and after giving effect to the Offering (assuming there is no exercise of the Over-Allotment Option and no other issuances of Common Shares), Pala’s ownership interest in the Company on a non-diluted basis would increase from approximately 43% to approximately 64% (assuming Pala is required to fund its full Subscription Commitment in the Offering and receipt of applicable regulatory clearance) and Mercuria’s ownership interest in the Company on a non-diluted basis would decrease from approximately 24% to approximately 17%.

Additional $10 Million Committed under the KfW Facility Extension Tranche; Seeking further $10 million Expansion under the KfW Facility

On October 28, 2022, a new tranche of up to $25 million (the “Extension Tranche”) was added to the Company’s senior credit facility (the “KfW Facility”) with KfW IPEX-Bank GmbH (“KfW”), of which Pala, Mercuria, and Triple Flag committed, in aggregate, the first $15 million, which has since been drawn by the Company. Pursuant to the Financing Agreement, Pala, Mercuria and Triple Flag commit to provide the remaining $10 million undrawn amount under the Extension Tranche, with Pala, Mercuria and Triple Flag committing to each provide $3.33 million of the Extension Tranche (the “Extension Funding”), in accordance with the terms and conditions of the Extension Tranche.

Pursuant to the Financing Agreement, the Company, Pala, Mercuria and Triple Flag have agreed to support the expansion of the Extension Tranche by $10 million, to an aggregate amount of $35 million. Such extension is subject to the approval of KfW and the Company’s other lenders. If such approval is obtained, each of Pala, Mercuria and Triple Flag would provide $3.33 million of such extended tranche and any draws under such extension would be made in accordance with the terms and conditions of the KfW Facility.

Deliveries under Stream Agreement Temporarily Financed through Extension Tranche

The Company and Triple Flag have agreed that certain metal deliveries that become due to Triple Flag under the Company’s stream agreement with Triple Flag will be financed through loans or advances committed by Triple Flag under the Extension Tranche (subject to refreshed draw room becoming available thereunder) up to a maximum of $15 million for 2023, and, subject to certain conditions, for 2024.

Deferred Funding Agreement

Upon the closing of the Offering, Pala and Mercuria have agreed to enter into a deferred funding agreement in favour of the Company (the “Deferred Funding Agreement”), pursuant to which Pala and Mercuria will provide up to $15 million and $10 million, respectively, subject to certain conditions, to be drawn pro rata by the Company, if required, until June 30, 2024. To the extent that the gross proceeds of the Offering, including any exercise of the Over-Allotment Option, exceeds $39.5 million, the $25 million deferred funding amount will be reduced, pro rata, on a dollar-for-dollar basis. These funds, if required, will be advanced in exchange for Common Shares, convertible and/or non-convertible debt of the Company.

The closing of the Offering is conditional on the execution of the Deferred Funding Agreement, as well as the completion of the Initial Pala Exercise, the Mercuria Warrant Exercise and the Extension Funding.

Pala has also agreed to provide $10 million in debt funding to the Company (some of which has already been advanced).

Consistent with the Company’s stated plans and prior disclosure, the Company has retained SMD as its underground lateral development contractor.

Mercuria Copper Option

Pursuant to the Financing Agreement, the Company has agreed to grant Mercuria an option to acquire, for an aggregate purchase price of $5 million, call options on a portion of the Company’s copper production on market terms to be agreed between the Company and Mercuria (the “Copper Option”). The Copper Option is subject to compliance with regulatory requirements (including any required approvals by the TSX), any required third-party consents (including the Company’s lenders, if required) and the approval by the independent directors of the Company.

Concord Extension

On April 27, 2023, the Company and Concord Resources Limited (“Concord”) agreed to extend the term of the Company’s working capital facility with Concord (the “Working Capital Facility”) for 36 months upon satisfaction of certain completion conditions, which would allow the Company to re-commence draws under the Working Capital Facility upon the resumption of concentrate deliveries to Concord.

Delisting Review

In connection with the Company’s October 2022 financing, the Company was granted a “financial hardship” exemption from the TSX requirements to obtain shareholder approval of certain components of the financing package. As a consequence, the TSX placed the Company under remedial delisting review, which is normal practice when a listed issuer seeks to rely on this exemption. The TSX has since confirmed that no remedial action is required by the Company in respect of the delisting review and that it satisfied the TSX’s applicable requirements for continued listing. As a result of the foregoing, the delisting review has now been lifted by the TSX.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Nevada Copper

Nevada Copper (TSX: NCU) is the owner of the Pumpkin Hollow copper project located in Nevada, USA with substantial mineral reserves and resources including copper, gold and silver. Its two permitted projects include the higher-grade Underground Mine and processing facility, which is undergoing a restart of operations, and a large-scale open pit PFS stage project.

Randy Buffington
President & CEO

For additional information, please see the Company’s website at www.nevadacopper.com, or contact:

Tracey Thom | Vice President, IR and Community Relations
tthom@nevadacopper.com
+1 775 391 9029

Cautionary Language on Forward Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements that relate to the completion of the Offering and the timing thereof, the Subscription Commitments, the timing of the Warrant Exercises, the availability of the undrawn portion of the Extension Tranche, the execution of the Deferred Funding Agreement, the use of proceeds of the Offering and the Financing Agreement, regulatory matters relating to the HSR Clearance and the achievement of the nameplate capacity of the production at the Underground Mine and the timing thereof. There can be no assurance that the Offering or the Warrant Exercises or the other transactions referred to herein will be completed or that ramp-up of the Underground Mine and the achievement of nameplate production capacity will occur or will not cost more than expected and require the Company to raise additional financing. There can be no assurance that any such additional financing will be available on terms that are favourable to the Company or at all.

Forward-looking statements and information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “is expected”, “anticipated”, “is targeted”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information should not be read as guarantees of future performance and results. They are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and events to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Such risks and uncertainties include, without limitation, those relating to: the ability of the Company to complete the restart and ramp-up of the Underground Mine within the expected cost estimates and timeframe; the impact of COVID-19 on the business and operations of the Company; the state of financial markets; history of losses; dilution; adverse events relating to milling operations, construction, development and restart and ramp-up, including the ability of the Company to address underground development and process plant issues; ground conditions; cost overruns relating to development, construction restart and ramp-up of the Underground Mine; loss of material properties; interest rate increases; global economy; limited history of production; future metals price fluctuations; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labor disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; title matters; regulatory approvals and restrictions; increased costs and physical risks relating to climate change, including extreme weather events, and new or revised regulations relating to climate change; permitting and licensing; dependence on management information systems and cyber security risks; volatility of the market price of the Company’s securities; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those risks discussed in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2022 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 20, 2023. The forward-looking statements and information contained in this news release are based upon assumptions management believes to be reasonable, including, without limitation: no adverse developments in respect of the property or operations at the project; no material changes to applicable laws; the restart and ramp-up of operations at the Underground Mine in accordance with management’s plans and expectations; no material adverse impacts from COVID-19 going forward; the Company will be able to obtain sufficient additional funding to complete the restart and ramp-up of the Underground Mine, no material adverse change to the price of copper from current levels; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended.

The forward-looking information and statements are stated as of the date hereof. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information and statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. Specific reference is made to “Risks and Uncertainties” in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2022 and “Risk Factors” in the Company’s Annual Information Form dated March 20, 2023, for a discussion of factors that may affect forward-looking statements and information. Should one or more of these risks or uncertainties materialize, should other risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results and events may vary materially from those described in forward-looking statements and information. For more information on the Company and the risks and challenges of its business, investors should review the Company’s filings that are available at www.sedar.com.

The Company provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Categories
Base Metals Energy Exclusive Interviews Gold Shore Resources Junior Mining Precious Metals

GOLDSHORE RESOURCES – 6Moz Gold at 1.02 g/t Au within 183.6Mt at MOSS GOLD PROJECT

Press Release: https://bit.ly/3M56TOT

Goldshore Resources – (TSX.V: GSHR | OTCQB: GSHRF)
CEO: Brett Richards
Website: https://goldshoreresources.com/
3D Deck: https://goldshoreresources.com/investors/#corporate-presentation

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Categories
Base Metals Energy Gold Shore Resources Junior Mining Precious Metals

Goldshore Announces Inferred Mineral Resource Estimate of 6.00Moz Contained Gold at 1.02 g/t Au within 183.6Mt at the Moss Gold Project

Shear Domain at the Moss Deposit increases to 3.35Moz at 1.84 g/t Au within 56.5Mt

Vancouver, British Columbia–(Newsfile Corp. – May 8, 2023) – Goldshore Resources Inc. (TSXV: GSHR) (OTCQB: GSHRF) (FSE: 8X00) (“Goldshore” or the “Company“) is pleased to announce an updated mineral resource estimate (the “Moss MRE“) for the Moss deposit (“Moss” or the “Moss Deposit“) and a maiden mineral resource estimate (the “East Coldstream MRE” and, together with the Moss MRE, the “MRE“) for the East Coldstream deposit (“East Coldstream” or the “East Coldstream Deposit“), both located at its 100%-owned Moss Gold Project in Northwest Ontario, Canada (the “Moss Gold Project” or the “Project“).

  • Moss Gold Project global inferred resource grows 44% to 6.00Moz at 1.02 g/t, within 183.6Mt.
  • Moss MRE grows with 24% more contained gold ounces and 32% more tonnes from 4.17Moz Au in 121.7Mt (November 2022 mineral resource estimate) to 5.42Moz Au at 1.03 g/t Au within 163.6Mt (open pit and underground).
  • The shear domain has increased in contained metal and tonnage from the November 2022 mineral resource estimate by 52% and 63%, respectively, to 3.35M oz Au at 1.84 g/t Au within 56.5Mt (open pit only).
  • There is clear expansion potential over the 8km-long belt through strike extensions (in both directions) and parallel shears where gold mineralization has been intersected but is sparsely drilled.
  • East Coldstream MRE introduced at 580Koz at 0.91 g/t Au in 20.0Mt (open pit and underground).
  • Implied stripping ratios are 5.2:1 for Moss and 6.4:1 for East Coldstream.
  • This resource increase implied by the Moss Gold Project demonstrates the scale of the project and the opportunity for a high-grade open-pit gold project.
  • Work is well underway on studies to support a preliminary economic assessment (“PEA”) planned for later this year.
  • The Moss Gold Project is host to 29 additional targets over a 35 km trend, which the Company continues to evaluate, and prioritize for future drill campaigns.
  • The Company has incurred discovery costs of approximately CAD$10 per ounce of inferred Au resource (all-in) including acquisition costs and overheads. This can also be measured as approximately 76 ounces Au per meter drilled (all-in costs included) in the 78,000 meters drilled to date.

Summary of the MRE

Open-Pit and Underground Constrained Inferred MRE for the Moss Deposit and East Coldstream Deposit with an Effective Date of May 5, 2023:

Moss Open Pit
Inferred ResourcesTonnesGradeContained Metal
(Domains)(Mt)(g/t Au)(Moz Au)
Shear56.51.843.35
Intrusion104.50.551.83
Total161.01.005.18
 
Moss Underground
Inferred ResourcesTonnesGradeContained Metal
(Domains)(Mt)(g/t Au)(Moz Au)
All2.62.900.24
Total2.62.900.24
 
East Coldstream Open Pit
Inferred ResourcesTonnesGradeContained Metal
(Domains)(Mt)(g/t Au(Moz Au)
All19.80.890.57
Total19.80.890.57
 
East Coldstream Underground
Inferred ResourcesTonnesGradeContained Metal
(Domains)(Mt)(g/t Au(Moz Au)
All0.22.240.01
Total0.22.240.01
Grand Total183.61.026.00

Note: Based on a US$1,650 per ounce gold price and economic cut-off grade of 0.35 g/t Au for open pit and 2.07 g/t Au and 2.00 g/t Au for underground resources (Moss and East Coldstream, respectively). Please review “Notes to Accompany Moss MRE” and “Notes to Accompany East Coldstream MRE” for additional information.

President and CEO Brett Richards stated: “This announcement is an important milestone for Goldshore and the Moss Gold Project. We are pleased with the results of the MRE, as it illustrates the size, scale, and potential of the Moss Gold Project that we have been communicating for the past many months. This important step in the development of the Project will now shift to commencing a PEA by putting a mining project around the resource with the goal of understanding the economic outputs.

“Today’s MRE is a first step towards understanding a potential first phase of the Moss Gold Project, as we believe it represents only a small portion of the mineralization or potential mineralization on our land package. We still have 29 additional targets to drill test, including several gold targets, but also 4 interesting base metal and battery mineral targets.

“We will now start to run scenario planning for the PEA with respect to how we construct a Phase 1 project of a clearly larger mineral resource, while investigating various leaching methodologies, including heap leach. When we have a clear picture of the scope of the PEA, we will guide the market as to when we believe the results of it will be available to the market.”

Notes to Accompany Moss MRE

  • Numbers have been rounded to reflect the precision of an inferred mineral resource estimate. Totals may vary due to rounding.
  • Estimation has been completed within the two separate reported geological domains: a higher-grade shear domain which occurs within a larger lower-grade intrusive domain; modelling of domain boundaries has considered both geology and grade.
  • Gold cut-off for open pit has been calculated based on a gold price of US$1,650/oz, mining costs of US$2.70 per tonne, processing costs of US$12.50 per tonne, and mine-site administration costs of US$2.50 per tonne processed. Metallurgical recoveries of 92.5% are based on prior metallurgical test work.
  • Gold cut-off for underground MSO shapes have been calculated based on a gold price of US$1,650/oz, mining costs of US$86.25 per tonne, processing costs of US$12.50 per tonne, and mine-site administration costs of US$2.50 per tonne processed. Metallurgical recoveries of 92.5% are based on prior metallurgical test work.
  • An economic cut-off grade of 0.35 g/t Au was applied to mineralized rock in the optimized open pit for processing determination.
  • Mineral Resources conform to NI 43-101, and the 2019 CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines and 2014 CIM Definition Standards for Mineral Resources & Mineral Reserves.
  • Neither the qualified person nor the Company are aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, or political factors that might materially affect the Moss MRE.
  • Mineral resources are not mineral reserves as they do not have demonstrated economic viability. The quantity and grade of reported inferred resources in the MRE are uncertain in nature and there has been insufficient exploration to define these inferred resources as indicated and/or measured resources. The Company will continue exploration intended to upgrade the inferred mineral resources to indicated mineral resources.

Notes to Accompany East Coldstream MRE

  • Numbers have been rounded to reflect the precision of the inferred mineral resource estimates. Totals may vary due to rounding.
  • Estimation has been completed within two geological zones: a strongly altered higher-grade shear zone surrounded by a lower-grade domain; modelling of domain boundaries has considered both geology and grade.
  • Gold cut-off has been calculated based on a gold price of US$1,650/oz, mining costs of US$2.70 per tonne, processing costs of US$12.50 per tonne, and mine-site administration costs of US$2.50 per tonne processed. Metallurgical recoveries of 96.5% are based on prior metallurgical test work.
  • Gold cut-off for underground MSO shapes have been calculated based on a gold price of US$1,650/oz, mining costs of US$86.25 per tonne, processing costs of US$12.50 per tonne, and mine-site administration costs of US$2.50 per tonne processed. Metallurgical recoveries of 96.5% are based on prior metallurgical test work.
  • An economic cut-off grade of 0.35 g/t Au was applied to mineralized rock in the optimized open pit for processing determination.
  • Mineral Resources conform to NI 43-101, and the 2019 CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines and 2014 CIM Definition Standards for Mineral Resources & Mineral Reserves.
  • Neither the qualified person nor the Company are aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, or political factors that might materially affect the East Coldstream MRE.
  • Mineral resources are not mineral reserves as they do not have demonstrated economic viability. The quantity and grade of reported inferred resources in the East Coldstream MRE are uncertain in nature and there has been insufficient exploration to define these inferred resources as Indicated and/or measured resources. The Company will continue exploration intended to upgrade the inferred mineral resources to indicated mineral resources.



Figure 1: Location of Moss Deposit and East Coldstream Deposit in the Moss Gold Project

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Technical Overview

Details of the MRE will be provided in a technical report with an effective date of May 5, 2023, prepared in accordance with National Instrument 43-101 (“NI 43-101“) standards, which will be filed under the Company’s SEDAR profile within 45 days of this news release. The MRE was prepared by independent mining consulting firm CSA Global Canada (“CSA Global“), a division of ERM Consultants Canada Ltd., in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM“) Definition Standards on Mineral Resources and Reserves (2014).

Additional Exploration Potential

The modelled shear and intrusion domains extend to much greater depth below the optimized open pit constraining the reported Moss MRE. The shears are also open along strike, beyond the modelled strike length of 3.6 km. Historical drilling has intercepted gold mineralization over a total strike length of 8 km, which has been a focus of Goldshore’s summer soil geochemistry and structural mapping programs. Furthermore, there remains potential for additional parallel shears with gold mineralization in historical drill holes 500 m to the southeast of the Moss Deposit.



Figure 2: Upside along strike and through parallel shears at the Moss Deposit

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Figure 3: Long section at the Moss Deposit showing gold mineralization in drillholes along strike and at depth looking northwest

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Moss Deposit Geology and Model

The Moss Deposit is a structurally controlled gold deposit within the greenstone terrain of the Archean Superior Province. Mineralization is localized where the major NE-trending Wawiag Fault Zone cuts a dioritic to granodioritic intrusion complex. The deposit is defined by a series of anastomosing centimeter- to meter-scale NE-trending shear zones carrying higher-grade gold mineralization, and lower-grade gold mineralization associated with weaker shearing and a more brittle-style deformation and veining in the intrusion rock mass and adjacent wall rocks between the shear zones. Mineralization is associated with pyrite, sericite and chlorite alteration and millimeter- to centimeter-scale irregular quartz-carbonate veinlets.

Detailed geological logging and multi-element geochemical analysis of drill core from 120 new holes total 68,802m from the 2021-23 drilling has supported modelling of discrete shear domains within the larger altered and variably mineralized intrusion domain, which includes adjacent volcanic wall rocks. The shear domains have a different higher-grade gold population to the low-grade intrusion domain and these domains have been estimated separately using different search parameters. Importantly, this allows a more accurate representation of the true grade variability within the deposit than has been achieved in previous estimates.

CSA Global was provided with the wireframes for resource estimation by Goldshore. Goldshore modelled the shear zones domain using a combination of geological features, including core orientation data, and raw assay values above 1 g/t Au using explicit digitizing methods in Micromine 3D geological modelling software. CSA Global modelled the intrusion domain using implicit modelling techniques in Leapfrog using a cut-off grade of 0.20 g/t Au in 15-meter downhole composites. Statistical and geostatistical assessment of 1 m composites confirmed that the shear domains should be estimated within hard boundaries separating them from the intrusion domain. Statistical analysis was used to determine high-grade capping for each shear zone wireframe and ranged from 30 to 60 g/t Au.

The Moss MRE was estimated with a block size of 9 x 9 x 3 m utilizing subblocks and constrained within wireframes with a minimum width of 3 x 3 x 1 m. Gold content was estimated using ordinary kriging methods using dynamic anisotropy variogram models. Mineral resources are presented as undiluted and in situ. The historical underground voids from Noranda’s 1980’s exploration program have been removed from the geological model.



Figure 4: Moss Deposit resource model within the US$1650 pit shell

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Figure 5: Typical cross section through the Moss Deposit

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East Coldstream Deposit Geology and Model

The East Coldstream Deposit is a structurally controlled gold deposit located approximately 15 km northeast of the Moss Deposit within the Moss Gold Project area. The East Coldstream Deposit’s mineralized zones are located on the south margin of a shear zone which separates a gabbroic intrusion to the north from a mafic-intermediate volcanic suite to the south. Mineralization is found within sheared volcanic units, proximal to sills of quartz and quartz-feldspar porphyries and distinctive, brick-red syenites. The mineralized zones show silica, carbonate, and hematite alteration. Mineralization consists of fine disseminations of pyrite and lesser chalcopyrite throughout the silica-hematite zones as well as within quartz-carbonate veinlets. Iron carbonate is present in areas proximal to strong silicification. The two main mineralized zones have been cut by a north-south-trending diabase dike.

Sixteen new drill holes, totaling 7,973 m, were drilled in the East Coldstream Deposit to gather the required geological understanding of the deposit. Mineralization was modeled by CSA Global guided by alteration wireframes provided by Goldshore. Implicit modelling techniques were utilized in wireframing a NE-trending shear zones carrying higher-grade gold mineralization which is subdivided into two parallel domains (Z-2 and Z-4), and two satellite subparallel lenses (Z-1 and Z-3). A lower grade wireframe was developed surrounding the shear zone domains representing mineralization associated with more brittle-style veining in the felsic to intermediate metavolcanic rocks, gabbros, and porphyries between the main shear zones.

Exploratory data analysis was used to determine high-grade capping for composites of two of the shear zones, with top cuts ranging from 13 to 15 g/t Au. The East Coldstream MRE was estimated with a block size of 6 x 6 x 6 m utilizing sub-blocks and constrained within wireframes with a minimum width of 3 x 3 x 3 m. Gold content was estimated using ordinary kriging methods using dynamic anisotropy and informed by variogram models. Mineral Resources are presented as undiluted and in situ.



Figure 6: East Coldstream Deposit resource within the US$1650 open pit shell

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Figure 7: Typical cross section through East Coldstream Deposit

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Drill Hole Data and QA/QC Procedures

The Moss Deposit has been evaluated by several diamond drill programs since the 1970s and earlier. The greatest number of drill holes were completed between 1986 and early 1992 by Tandem/Storimin and Noranda Inc. (311 drill holes for 86,196 meters). A smaller drilling program in 2008 served to validate the older data and lead to the completion of the historical resource estimate by Moss Gold Mines Ltd. in 2013.

The East Coldstream Deposit has been evaluated by several diamond drill programs since 1987. Most of the historic drilling was conducted between 2010 and 2011 by Foundation Resources who completed total of 66 diamond drillholes in the Coldstream deposit, totaling 16,988 m.

There are little documented QA/QC procedures or data available for programs prior to 2008.

The ongoing Goldshore drilling program utilizes full industry-standard survey control and QAQC programs and is designed to systematically redrill the deposits and validate as much of the historical drilling as possible through collar surveys, re-logging, and re-sampling.

Mineral Resource Classification

The Moss MRE has been classified as an inferred mineral resource. This resource classification reflects the fact that much of the drill hole data used for the resource estimate is historical, and no QA/QC data or reports exist for the majority of these drill holes. Statistical assessment of historical data and recent data provided some support for the historical data, but also included some inconsistencies. Goldshore’s planned program of infill and confirmatory drilling is expected to support classification of indicated mineral resource in subsequent mineral resource updates.

Reasonable Prospects for Eventual Economic Extraction

To support reasonable prospects for eventual economic extraction for the MRE, CSA Global used the estimated block model to generate an optimized open pit using Datamine NPV Scheduler software and the following assumptions: a gold price of US$1,650/oz, plant recovery of 92.5% and 96.5% for Moss Deposit and the East Coldstream Deposit, respectively; processing costs of US$12.50/tonne, mine-site general and administration costs of US$2.50/tonne processed, mining costs of US$2.70/tonne moved, and an overall pit slope angle of 50 degrees. NPV Scheduler Software is widely used by mining engineers to apply the Lerchs-Grossman algorithm to block models in order to generate optimized pit shells upon which economic open pit mine designs may be based.

The MRE is are constrained within the selected optimized pit shells which reach a maximum depth of approximately 450m and 250m in the Moss Deposit and East Coldstream Deposit, respectively.

Next Steps

In late 2022, Goldshore commenced an extensive program of relogging and resampling of all historical drill holes whose collars have been located and accurately surveyed. Where possible, these drill holes are also being surveyed using modern downhole surveying equipment. Resampling of historical drill core is ongoing, although most core blocks are now illegible rendering resampling impossible.

Pete Flindell, VP Exploration for Goldshore, said, “This MRE has highlighted the larger scale of gold mineralization on the Moss Gold Project. It remains conservative in many areas because of the concerns over historical drill data and we look forward to updating the quality and quantity of the mineral resource inventory following a comprehensive infill drill program. In the meantime, our field programs continue to develop our better exploration targets with the potential to add significantly to our resource base. At the same time, we will be working on the PEA, which will optimize and evaluate the many mining and milling options available to us. These include a high recovery flotation-regrind-leach mill process, potential heap leaching of low-grade mineralization and mining at different scales to maximize gold grades fed to the mill.“

Qualified Person Statements

Dr. Matthew Field (Pr. Sci. Nat), Manager – Resources at CSA Global is an independent “qualified person” under NI 43-101 and responsible for the MRE. Dr. Field has prepared and approved the scientific and technical information related to the MRE contained in this news release.

Peter Flindell, P.Geo., MAusIMM, MAIG, Vice President – Exploration of the Company, and a “qualified person” under NI 43-101 has also reviewed and approved the scientific and technical information contained in this news release.

About Goldshore

Goldshore is an emerging junior gold development company, and owns the Moss Gold Project located in Ontario. Wesdome Gold Mines Ltd. is currently a large shareholder of Goldshore. Supported by an industry-leading management group, board of directors and advisory board, Goldshore is positioned to advance the Moss Gold Project through the next stages of exploration and development.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

For More Information – Please Contact:

Brett A. Richards
President, Chief Executive Officer and Director
Goldshore Resources Inc.

P. +1 604 288 4416 M. +1 905 449 1500
E. brichards@goldshoreresources.com
W. www.goldshoreresources.com

Facebook: GoldShoreRes | Twitter: GoldShoreRes | LinkedIn: goldshoreres

Cautionary Note Regarding Forward-Looking Statements

This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such 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.

Forward-looking statements in this news release include, among others, statements relating to expectations regarding the exploration and development of the Project, the filing of a technical report supporting the MRE, commencement of a preliminary economic assessment and prefeasibility study, and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; compliance with extensive government regulation; domestic and foreign laws and regulations could adversely affect the Company’s business and results of operations; the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company’s securities, regardless of its operating performance; the impact of COVID-19; the ongoing military conflict in Ukraine; and other risk factors outlined in the Company’s public disclosure documents.

The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

Categories
Base Metals Energy Junior Mining Precious Metals

Terra Balcanica Confirms Epithermal Gold and Porphyry Copper Targets at Ceovishte in Serbia and Closes First Tranche of Financing

Terra Balcanica Resources Corp.
Terra Balcanica Resources Corp.

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

Vancouver, British Columbia, May 08, 2023 (GLOBE NEWSWIRE) — Terra Balcanica Resources Corp. (“Terra” or the “Company”) (CSE:TERA; FRA:UB1) is pleased to announce positive assay results from surface rock chip and soil sampling at its 80.4 km2 Ceovishte license in southern Serbia and closing of the 1st tranche of the previously announced non-brokered private placement financing of units (the ”Units”) for gross proceeds of $404,650 (the “Offering”).

Highlights

  • Surface rock sample include concentrations as high as 53.5 g/t Au, 78.6 g/t Ag and 2.47 % Cu with up to 0.39% Co and 0.45% Bi (Table 1);
  • > 900 m strike length of Au-Ag-As-Bi-Cu-Te anomalism in soil geochemistry defines new target, with soil assays returning up to 2.42 g/t Au (Figure 2);
  • Mineralization is controlled by potassic altered diorites hosting quartz-chalcopyrite veins with secondary copper mineralogy at surface (Figure 3) and a gold-bismuth-cobalt rich epithermal assemblage;
  • Drill-ready with both porphyry and epithermal mineralization visible at collar locations.

Terra Balcanica CEO, Dr. Aleksandar Mišković, commented: “Detailed prospecting, rock chip and soil sampling at our Serbian Ceovishte licence not only confirmed the existence of a sizable hydrothermal system responsible for multi-ounce gold assays at surface near the Medjurečje locality but also defined a new, 900-m-wide, topographically depressed, semi-circular gold-silver-copper soil anomaly northeast of the high-grade Au zone that is characterized by potassic altered andesites interpreting by Terra’s technical team to represent a previously neglected porphyry target. This confirms the potential of our Serbian assets and represents a significant diversification of the Company’s polymetallic portfolio already defined by our Viogor Zanik project. It sets the stage for drilling of the shallow high grade gold target later this year.”

The Ceovishte license totals over 80 km2 of highly prospective land for gold and copper exploration in the historic Raska mining district of southern Serbia (Figure1). The license area drapes southern slopes of the Golija Mountain, a part of the well-known Kopaonik metallogenic zone. This area features the Kiževak and Sastavci Pb-Zn-Ag mines including the Karadak deposit, all owned by Adriatic Metals plc. The historical Yugoslav GKZ, non-NI 43-101 compliant resource estimates for Kiževak is 3.9 Mt of ore grading 3.92 % Zn, 2.15 % Pb and 31 g/t Ag categorized according to the Yugoslav A+B+C1 resource nomenclature (www.adriaticmetals-serbia.com/our-projects/adriatic-metals-serbia-sastavci). The Raska mining district also holds the Rudnica Cu-Au porphyry target and is a northerly extension of the partially exploited, world class Trepča Pb-Zn-Ag skarn deposit of the norther Serbian province of Kosovo. Trepča features a non-NI 43-101 compliant resource of 60.5 Mt of ore grading over 8.0 % Pb+Zn and >159 Moz of Ag.

Figure 1. Geological map of the Ceovishte license area in southern Serbia. The black rectangle labelled Figure 2 is Terra’s primary area of interest within the license. It encapsulates Au-Cu mineralized Neogene volcanic rocks which intruded an ultramafic country rock of the West Vardar Ophiolite. Previous operators conducted work in the south of the Ceovishte license and overlooked the Au-Cu potential of the north where Terra has conducted a successful soil and rock chip sampling campaign and is planning a maiden drilling program in early Q3 of 2023 (click here to view image).

Figure 2. Map displaying Au in soil (ppb), and anomalous Au-Ag-As-Bi-Cu-Te signature. Sampling verifies the location of known mineralization and reveals > 900 m strike length of new prospective ground open to the NE. Rock sample IDs can be correlated with results in Table 1. The drill target is labelled where rock chips return up to 53.5 g/t Au and 1.45 % Cu. Note the location of anomalous Au in soil forming an arcuate pattern around the depressed centre, interpreted as possible concentric fractures around a porphyry intrusive which crops out in the south and northwest. (WGS84/UTM Zone 34N) (click here to view image).


Geology and Mineralization
The Company is focussed on exploring the overlooked Au-Ag-Cu (Bi-Co) occurrences in the northern extents of the license where Neogene intrusive rocks of intermediate composition are emplaced within ultramafic rocks of the west Vardar Ophiolite Belt. Field observations and microscopy confirms biotite-magnetite-k-feldspar potassic alteration within the diorites, which are observed controlling the distribution of mineralization and are thus inferred as the causative intrusion and target for further exploration. Intrusive contacts and vein-hosted sulphides in the south dip shallowly to the NNE below ultramafic cover into an annular topography low.

Both hypogene sulphide mineralization and supergene oxide zones are present at Ceovishte and returned very encouraging assay results of a well-endowed Au-Ag-Cu system. Quartz-chalcopyrite veins are partially oxidised at surface producing a mixture of malachite, azurite and tenorite (Figure 3) and occur within the same outcrops as quartz-arsenopyrite-bismuthinite veins. Chalcopyrite is also observed finely disseminated within the potassic altered intrusives. Gossans and vuggy silica host the highest Au values up to 53.5 g/t.

Figure 3. Macroscopically observed copper mineralization in samples 103281 and 103276 which returned 1.45 % and 2.47 % Cu, respectively. Mineralization is vein-hosted within potassic altered diorites and comprises quartz, chalcopyrite, malachite, azurite and tenorite (click here to view image).
Mineralized rock samples also return high bismuth and cobalt, which may have been stripped from the ultramafic country rocks by hydrothermal fluids and re-precipitated within the epithermal veins. Ceovishte therefore has characteristics of the 5-element vein (Ag-Bi-Co-Ni-As) style of mineralization.

SampleEastingNorthingAu (g/t)Ag (g/t)Bi (ppm)Cu (%)Co (ppm)
100851476500481518253.58.744900.0312
10083847555448161860.1978.620.0171
100839476417481518811.010.135700.14805
10327347638348152046.561.22990.011300
10327147633548151570.481.8200.1221
103282476479481517310.950.822990.023940
10326447660248151820.0918.960.015.7
10326747560648161960.020.69420.049
10326247562848160843.0911.84800.03336
10326947560548161580.101.70.4–9
10327647617948159870.0510.8202.4713
10327947637648151280.392.1650.0127
10328047638348151333.281.422240.01145
10327747618948159972.20.5690.0188
10328147651448151890.1621.51441.4550

Table 1. Rock chip locations and assay results for key commodity elements. Samples can be seen with anomalous Au in soil Figure 1. (WGS84/UTM Zone 34N).

Soil Geochemistry
Results from 386 B/C horizon soil samples successfully captured the signature of Au-Cu mineralization at Ceovishte. Two known occurrences were highlighted by the sampling, verifying the Au-Ag-As-Bi-Cu-Te grouping as representing mineralization, with a further 900 m strike length anomaly being generated for follow up in the north of the survey. The newly defined target area returned assays up to 2.42 g/t Au and 424 ppm Cu in soil. This area has not seen rock chip sampling and offers significant exploration upside for extending the footprint of known Au-Cu mineralization.

Elevated commodity and pathfinder elements in soil correlate to a K-Ba-Na element grouping, indicating sub cropping intermediate composition intrusives rather than the ultramafic country rock which has a strong Ni-Co-Cr-Mg signature. Soil anomalism generates an annular pattern which surrounds a central topographic depression with enclosing ridges of ultramafic rock. This correlation could indicate concentric and ring radial fractures, which have formed around a central porphyry intrusive and focussed hydrothermal fluid flow. Potassic altered, Au-Cu mineralized diorite intrusives have been observed and sampled at both the southern and northern extents of this annular feature, with over 900 m of untested strike length in the northeast.

Future Exploration Program
The norther Ceovishte licence is drill-ready with pad locations designed to test the depth extensions of the Au-Cu mineralization sampled on surface. Following positive results in maiden drilling geophysics will be considered to guide a larger phase II drilling program.

Follow up of the anomalous soil geochemistry will be undertaken in the northeast through geological/alteration mapping and rock chip assay. This will generate a pipeline of targets for drill testing. Further soil sampling will be completed in the northeast where the anomaly remains open to define its full spatial extent.

1st Tranche Private Placement Financing Closed
The Company issued an aggregate of 4,760,586 Units at a price of $0.085 per Unit for gross proceeds of $404,650 pursuant to the Offering announced on April 4th, 2023. Each Unit consists of one common share in the capital of the Company (each, a “Common Share”) and one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to purchase one Common Share at an exercise price of $0.13 until May 5th, 2026.

The Company intends to use the net proceeds of the Offering for working capital and to fund the Phase II drilling across its portfolio of properties. Finders’ fees in the amount of $8,057 were paid.

Giulio Bonifacio, Chair of the board of directors, Steven Latimer, a director, and Kim Oishi, a director (the “Insiders”) purchased 1,194,117 Units as part of the Offering.  The issuance of the Units to the Insiders constitutes a “related party transaction” as this term is defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”). The Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, as the securities do not represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101. The participation by Insiders in the Offering was approved by directors of the Company who are independent in connection with such transactions.

Pursuant to applicable Canadian securities laws, all securities issued and issuable in connection with the closing of the Private Placement will be subject to a four (4) month hold period ending September 6th, 2023.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws, and may not be offered or sold within the United States, or to or for the account or benefit of any U.S. person or any person in the United States, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. “United States” and “U.S. Person” are as defined in Regulation S under the U.S. Securities Act.

QAQC
Representative rock samples were taken from surface outcrops and sent to ALS Bor, Serbia for sample preparation and subsequent wet chemical analysis at the Loughrea laboratory in Ireland, and ISO/IEC 17025:2017 certified test facility. Sample preparation PREP-31BY method involved crushing the core to a 70% fraction less than 2 mm in size, rotary split 1.0 kg and pulverizing the split to greater than 85% passing 75 microns. Silver and base metals were analysed by ICP MS after a four-acid digest (ME-MS61). Gold was assayed by 30g fire assay with ICP AES finish (Au-ICP21). Over limit samples for base metals were re-analysed by the four-acid digest ICP-AES analyses termed ME-OG62. Over-limit gold analysis was conducted by fire assay and gravimetric finish (Au-GRA21). Soil samples were taken in the B/C horizon and sent to ALS Bor, Serbia. Analysis was undertaken after dry screening to 180 microns by method AuME-TL44 an aqua regia digest followed by ICP analysis on a 50g sample. Over-assays were conducted by the OG-46 (base metals) and Au-AROR44 (gold) techniques.

Qualified Person
Dr. Aleksandar Mišković, P.Geo, is the Company’s designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure of Mineral Projects (“NI 43-101”) and has reviewed and validated that the information contained in this news release as accurate.

About the Company
Terra Balcanica is a polymetallic exploration company targeting large-scale mineral systems in the Balkans of southeastern Europe. The Company has 90% interest in the Viogor-Zanik Project in eastern Bosnia and Herzegovina, 100% of the Kaludra and Ceovishte mineral exploration licences in southern Serbia. The Company emphasizes responsible engagement with local communities and stakeholders. It is committed to proactively implementing Good International Industry Practice (GIIP) and sustainable health, safety, and environmental management.

ON BEHALF OF THE BOARD OF DIRECTORS

Terra Balcanica Resources Corp.
“Aleksandar Mišković”

Aleksandar Mišković
President and CEO

For further information, please contact Alex Mišković at amiskovic@terrabresources.com, or visit our website at www.terrabresources.com.

Cautionary Statement

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of any of the words “will”, “intends” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. The Company does not undertake to update these forward-looking statements, except as required by law.