(via TheNewswire)
Project highlights:
- The Project package contains high-grade zinc ("Zn") deposits.
- Total tenement package covers 175km2and consists of two deposits -
Winston Lake and Pick Lake deposits.- The Project also contains several high potential exploration targets.
- The Project is located in the Province of
Ontario, Canada approximately 200km east ofThunder Bay .
The following is a Mineral Resources Estimation of the Project, effective
Classification Tonnes (Mt.) Zn(%) Cu(%) Au(g/t) Ag(g/t)
Indicated 2.07 17.9 0.8 0.4 33.6
Inferred 0.27 16.2 1.0 0.3 37.2
Notes to Mineral Resource Estimation:
1) A cut-off of 3% Zn is used.
2) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an
Indicated Mineral Resource.
3)
A Technical Report regarding the above-noted Mineral Resources Estimation for the Project will be filed by CROPS onwww.sedar.comwithin 45 days.
In 2019, Superior Lake published a Bankable Feasibilty Study ("BFS") for the Project which incorporated
Superior Lake's rights to the Project consist of:
- 100% interest in the claims comprising Pick Lake deposit, subject to a 2% NRS royalty, and subject to making a final purchase payment of
$500,000 (the "FinalPick Lake Payment ") to the previous owner which the parties intend to satisfy at the closing of the Acquisition.-Option to acquire a 100% interest in the claims comprising the
Winston Lake deposit, subject to a 2% NSR royalty. To exercise the option, a letter of credit of$1.2 million issued by the current property owner in favour of theOntario mining ministry must be replaced.- 100% owned claims hosting exploration targets.
The Proposed Transaction
To complete the Acquisition, which is an arm's length transaction, the Company intends to conduct the following (the "Transactions"):
- consolidate its common shares on 10:1 basis.
- settle in full the principal amount of its existing debentures, plus accrued interest, totaling
$5,377,315 by issuing 20,960,790 post-consolidation common shares of the Company.- raise a minimum of
$3.0 million via a private placement of subscription receipts (the "Financing") at$0.10 per receipt, which receipts will be converted at the closing of the Acquisition into a total of 30 million post-consolidation common shares of the Company.- in consideration for the transfer to the Company of 100% of the issued shares of
Pick Lake Mining Ltd. , the wholly-owned subsidiary of Superior Lake which at closing will hold the rights to the Project:- issue 128,920,000 post-consolidation shares to Superior Lake;
- pay
A$200,000 ("Acquisition Cash Payment") to Superior Lake, in addition to an initial non-refundable payment ofC$25,000 which has been advanced to Superior Lake;- assume the rights and obligations of the underlying purchase and option agreements regarding the Pick Lake and
Winston Lake deposits, including make the FinalPick Lake Payment .
- continue the Company's jurisdiction from the
Yukon toBritish Columbia .- change the Company's name to "
Metallum Resources Inc. "
The Company may pay a finder's fee on all or a portion of the Financing. The proceeds of the Financing are intended to be used to make the Acquisition Cash Payment and the Final
It is anticipated that upon completion of the foregoing Transactions, the Company will have 186,869,852 common shares issued and outstanding, of which Superior Lake will own approximately 70%.
Upon completion of the Acquisition,
James has held numerous engineering positions in mine operations as well as managerial roles in mining operations. He has overseen four feasibility studies and oversaw the development of mines. After 24 years in mining operations and engineering studies he moved into the junior mining sector for the last 17 years. He was the President and CEO of three junior companies gaining experience with governmental issues, investment bankers, finance, corporate governance, first nations, and investor relations. He has sat on the board of over 15 junior companies over his career and is currently on the board of two junior companies.
Prior to these recent roles, David held senior positions in mining investment banking and debt advisory services at Endeavour Financial, and
Based on the terms of the Transactions, the Company will apply to the
Conditions for Completion
Completion of the Acquisition is subject to a number of conditions, including approval by the shareholders of the Company and Superior Lake, completion of the Financing, preparation of a NI 43-101 compliant technical report on the Project, and approvals by the TSXV and the
Investors are cautioned that, except as disclosed in the management proxy circular to be prepared in connection with the Transactions, any information released or received with respect to the Transactions may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.
The TSXV has in no way passed upon the merits of the proposed Transactions and has neither approved nor disapproved the contents of this news release.
Technical Information
All scientific or technical information contained in this news release was reviewed and approved by
About CROPS
CROPS is a TSXV-listed mineral exploration company led by an experienced management team with a track-record of building value in resource companies. For further information, please visit our web sitewww.crop2o5.com.
ON BEHALF OF THE BOARD
Symbol: TSXV-COPS
Shares Issued: 69.9 million
For further information, contact:
Tel: 604-688-5288; Fax: 604-682-1514
Email:info@crop2o5.com
Website:www.crop2o5.com
Neither the TSXV nor the
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information contained in this news release constitute "forward-looking statements" within the meaning of applicable
Forward-looking statements in this news release include, but are not limited to: statements regarding the resource, reserve and viability of the Project, future capital expenditures, success of exploration activities; the work to be performed to verify the historical estimate as current mineral reserves and mineral resources, completion of the Final
Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. The Company believes the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Such uncertainties and factors relate to, among other things, the Transactions, the Project and the Company assuming the Transactions are completed; changes in general economic conditions and financial markets; risks related to changes in Project parameters as plans continue to be refined; future prices of Zn, lead, silver and other minerals; the Company not having the financial ability to meet its exploration and development goals; mineral resource estimates may change and may prove to be inaccurate; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; adverse geotechnical and geological conditions (including geotechnical failures) may result in operating delays and lower throughput or recovery,closures or damage to mine infrastructure; unanticipated costs and expenses; the Company may be unsuccessful in attracting and retaining key personnel; the Company's title to exploration, development and mining interests can be uncertain and may be contested; the Project may be subject to claims by various community stakeholders; the Company may be subject to litigation; risks relating to widespread epidemics or pandemic outbreak and such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com. 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 statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the applicable stock exchange or shareholder approvals to the Transactions will be obtained; that all of the Transactions will be completed as planned; that there will be no material adverse change affecting the Company or its properties; the ability of the Company to continue to operate during the COVID-19 pandemic; that the Company will be able to complete the Financing and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.
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Copyright (c) 2020 TheNewswire - All rights reserved., source