21C Metals Closes Transaction to Acquire 43-101 Inferred Palladium Resource
February 26, 2019 (Source) — 21C Metals Inc. (formerly Declan Cobalt Inc.) (“21C Metals” or the “Company“) (CSE: BULL) (FRA: DCR1) (OTCQB: DCNNF) announces that its wholly-owned subsidiary, East Bull Resources Inc. has entered into an option agreement (the “Agreement”) with Pavey Ark Minerals Inc. (“Pavey Ark“), to acquire a 100% interest in the East Bull palladium property in the Sudbury Mining Division (Ontario) (the “Property“).
P&E Mining Consultants Inc. of Brampton, Ontario has prepared a NI 43-101 compliant report on the Property dated April 5, 2018 (the “43-101 Report“). The NI 43-101 Report references a pit-constrained inferred resource of 11.1 million tonnes of 1.46 grams per tonne (523,000 ounces) palladium equivalent. The NI 43-101 Report is available for review at www.paveyarkminerals.com, and will be filed on SEDAR within 180 days of this announcement. The Property consists of approximately 1000 hectares covering more than 3.6 kilometres of the East Bull layered intrusion. This area consists of an inclusion bearing zone hosting palladium mineralization.
The 43-101 Report recommends an exploration program to extend and define the known mineralization. The Company has not undertaken any independent detailed investigation of the information contained in NI 43-101 Report in order to verify the accuracy of the information. However, the Company believes that following the recommended exploration work program will increase the current resource and help to define the extent of the palladium mineralization.
The price of palladium has recently increased such that it now exceeds that of gold. Palladium is the principal element used in internal combustion engine catalytic converters. Deposits are rare, found generally in South Africa, Russia, Montana and the Sudbury Basin in Ontario, where the Property is located. High demand for palladium is expected to continue due to many jurisdictions (including China) implementing more stringent domestic emissions standards.
Mr. Wayne Tisdale, CEO of the Company reports:
“We are pleased to have closed this transaction to acquire a palladium resource located within 70 kilometres of Sudbury, Ontario. By pursuing the recommended work program referenced in the 43-101, this resource appears to have excellent potential to add palladium ounces to the current estimate. This palladium asset perfectly complements our current Tisova copper-cobalt project. At 21C Metals, we are actively pursuing the metals required for current production demand (palladium) while also preparing for the ever-increasing demand for cobalt and copper. We call our strategy Metals for Today and Tomorrow.”
Pursuant to the Agreement, and over a period of four years (should the Company elect to continue), the Company is obliged to incur $1,750,000 in exploration expenditures, issue $975,000 in cash payments, and issue an aggregate of 4.5 million common shares of 21C Metals to Pavey Ark in accordance with the following schedule:
|Minimum Exploration Expenditures||Common Shares Issued||Cash Issued||Due Date|
|–||–||$25,000||On Term Sheet signing (paid)|
|–||750,000||$75,000||Within 5 days of signing|
|$250,000||750,000||$150,000||On or before March 1, 2020|
|$500,000||1,000,000||$200,000||On or before March 1, 2021|
|$500,000||1,000,000||$250,000||On or before March 1, 2022|
|$500,000||1,000,000||$300,000||On or before March 1, 2023|
The Company has not undertaken any independent detailed investigation of the information contained in NI 43-101 Report in order to verify the accuracy of the information or whether the information was prepared in accordance with the requirements of NI 43-101. However, the Company believes that following the recommended exploration work program will increase the current resource and help to define the extent of the palladium mineralization.
This news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to timing of entering into of a definitive agreement, the conditions to entering into of a definitive agreement, the proposed terms of the transaction and the proposed exploration work program on the Property. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation and environmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; liabilities inherent in mining operations; competition for, among other things, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, processing and transportation problems; changes in tax laws and incentive programs; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
The Canadian Securities Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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