VANCOUVER, British Columbia, Nov. 20, 2024 (GLOBE NEWSWIRE) — CMC Metals Ltd. (TSX-V: CMB) (Frankfurt:ZM5P) (“CMC” or the “Company”) is pleased to report that it has entered into an option agreement (“Agreement”) with Coeur Silvertip Holdings, Ltd. (“Coeur”), a subsidiary of Coeur Mining, Inc. (NYSE: CDE) on its Silverknife Property (“Property”) in north-central British Columbia.
The Agreement paves the way forward for Coeur to undertake a significant, multi-year exploration program on the Property. The Agreement provides Coeur with the ability to earn a 75% interest in the Property, following which Coeur has a right to either purchase the property or enter a Joint Venture arrangement with CMC. The total commitments to earn 75% amount to $4,050,000 in the aggregate, of which $500,000 Cdn is cash payments to CMC and $3,550,000 Cdn is exploration expenditures. Purchase of the remaining 25% interest would require an additional buyout payment that would take the aggregate commitment to $6.3M Cdn, and the Property would remain subject to an existing NSR. The Agreement contains the commitments as follows:
| Item | Date/Period | Expenditures | Option Payments |
||
| 1 | Within ten (10) business days of the Effective Date | $ | 100,000 | ||
| 2 | On or before December 31, 2024 | $ | 150,000 | — | |
| 3 | On or before March 31, 2025 | — | $ | 100,000 | |
| 4 | On or before December 31, 2025 | $ | 550,000 | — | |
| 5 | On or before March 31, 2026 | — | $ | 100,000 | |
| 6 | On or before December 31, 2026 | $ | 800,000 | — | |
| 7 | On or before March 31, 2027 | — | $ | 100,000 | |
| 8 | On or before December 31, 2027 | $ | 950,000 | — | |
| 9 | On or before March 31, 2028 | — | $ | 100,000 | |
| 10 | On or before December 31, 2028 | $ | 1,100,000 | — | |
| Cumulative Total | $ | 3,550,000 | $ | 500,000 | |
Once Coeur has completed the expenditure and option payment commitments to earn at least a 75% interest in the Property, it then also acquires:
- A right of first refusal to purchase CMC’s Amy property, a high-grade Carbonate Replacement Deposit (“CRD”) target located approximately 6 km west of the Silverknife Property;
- Any expenditures made by Coeur in excess of $3,550,000 up to December 31, 2028, will be credited towards Coeur’s right to a Buyout or, if no Buyout is exercised, to Coeur’s account to increase its interest in the Joint Venture;
- Two distinct buyout options for the remaining 25% interest:
- Buyout Payment: Within 60 days of earning its 75% interest, Coeur has the right to buy out CMCs’ remaining interest by paying $2,250,000 Cdn.
- Joint Venture: If Coeur does not exercise the buyout payment option, then the parties will establish a joint venture that will fund the ongoing operations according to their proportionate interests. Coeur will have the right to increase its interest in the joint venture, earning an additional 0.5% interest for every $100,000 spent on expenditures, up to a maximum of 90% of CMCs remaining interest, provided these additional expenditures occur before December 31, 2030. Coeur may, at its discretion, purchase the remaining interest from CMC for $3,000,000 Cdn subject to certain additional conditions.
CMC retained its right to purchase an existing 1% NSR on the Property.
The complete definitive agreement will be posted on www.cmcmetals.ca
Mr. Kevin Brewer, President, CEO and Director of CMC notes “This agreement is very significant and a game changer for our Company. It confirms that we are on the right track towards identifying high-grade CRD prospects of significant interest within the Rancheria Silver District. We are extremely pleased to attract Coeur, a top tier precious metals producer, to commit to a significant program at Silverknife and also signal a potential interest in the Amy Property. This agreement solidifies our positive working relationship with Coeur Mining and we continue to see a very bright future for further exploration and development in the Rancheria Silver District.”
Ms. Aoife McGrath, Senior Vice President of Exploration for Coeur notes “Coeur is very pleased with the signing of this agreement that fills a gap in the current Silvertip land package, ensuring we have a fully contiguous set of claims over this highly-prospective belt. We believe mineralization styles are similar to those found at Silvertip and expect to include an exploration program over the property in our 2025 plans. We look forward to continuing the exploration programs initiated by CMC.”
Coeur will now be the project operator and is currently compiling the data from previous programs and planning to undertake additional airborne geophysical surveys in the foreseeable future. Exploration efforts are expected to continue to target identifying polymetallic mineralization that management believes may be similar to that found at Coeur’s Silvertip Mine, located within one kilometer east of the Silverknife Property. Coeur’s mining claims and the Silverknife Property are contiguous. Coeur has indicated they will undertake a detailed review of all historical and current data and from that determine future exploration activities on the Property. Once this program has been defined, relevant details will be communicated to investors and shareholders. A five-year exploration permit is in place for the Property, expiring on March 31, 2028.
Since 2022, CMC has completed a SkyTEM geophysical survey, two ground gravity geophysical surveys, and a 2,146.3m drill program. Key intersections include Hole SKP 23-06: 0.5m of 881 g/t silver, 5,060 g/t lead, 1,500 g/t zinc and 1,335 g/t copper; and Hole SKP 2P 23-07 with 3.91m grading 0.73 g/t Gold, and 17.63 g/t Silver; and another 1.6m interval grading 9,079.7 g/t zinc. This work served to identify four primary CRD targets on the property (see Press Releases of March 20, 2024 and April 15, 2024).
Exploration at Silverknife is targeting high-grade silver-lead-zinc CRDs, which management believes may be similar to that found at Coeur’s Silvertip Mine. At Silverknife, CRD mineralization was identified in drilling campaigns (47 diamond drill holes, 4,167.1 meters) during the mid-1980’s at the Silverknife Prospect which extends west by less than one kilometer from the Silvertip mine. Key intersections included hole 85-4: 7.25m of 5.04 oz Ag/t, 2.65%Pb and 3.09% Zn; Hole 85-6 – 0.2m of 4.43 oxz/t Ag, 1.9% Pb and 3.42% Zn, 85-21: 4.3m of 29.02 oz/t Ag, 10.14% Pb and 7.02% Zn. Other work included extensive ground geophysical programs (i.e., VLF-EM, Induced Polarization – 30.3 line km), over 2,000 soils, prospecting and mapping.
Qualified Person
Qualified Person Kevin Brewer, a registered professional geoscientist, is the Company’s President and CEO, and Qualified Person (as defined by National Instrument 43-101). He has given his approval of the technical information pertaining reported herein. The Company is committed to meeting the highest standards of integrity, transparency and consistency in reporting technical content, including geological reporting, geophysical investigations, environmental and baseline studies, engineering studies, metallurgical testing, assaying and all other technical data.
About CMC Metals Ltd.
CMC Metals Ltd. is a growth stage exploration company focused on opportunities for high grade polymetallic deposits in British Columbia, Yukon and Newfoundland. Our flagship project is the Amy Property in the emerging Rancheria Silver District. Other projects in this District include the Silverknife project (British Columbia) and the Silver Hart Deposit/Blue Heaven claims (Yukon). Our polymetallic projects with potential for copper-silver-gold and other metals include Bridal Veil (Newfoundland) and Logjam (Yukon), both of which are available for option.
On behalf of the Board:
“Kevin Brewer”
President, CEO and Director
CMC Metals Ltd.
For Further Information and Investor Inquiries:
Kevin Brewer, P. Geo., MBA, B.Sc. (Hons), Dip. Mine Eng.
President, CEO and Director
Tel: (709) 327-8013
kbrewer80@hotmail.com
Suite 1000-409 Granville St.,
Vancouver, BC, V6C 1T2
To be added to CMC’s news distribution list, please send an email to info@cmcmetals.ca or contact Mr. Kevin Brewer directly.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
“This news release may contain certain statements that constitute “forward-looking information” within the meaning of applicable securities law, including without limitation, statements that address the timing and content of upcoming work programs, geological interpretations, receipt of property titles and exploitation activities and developments. In this release disclosure regarding the potential to undertake future exploration work comprise forward-looking statements. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks, including the ability of the Company to raise the funds necessary to fund its projects, to carry out the work and, accordingly, may not occur as described herein or at all. Actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, the impact of the constantly evolving COVID-19 pandemic crisis and continued availability of capital and financing and general economic, market or business conditions. Readers are referred to the Company’s filings with the Canadian securities regulators for information on these and other risk factors, available at www.sedar.com. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.”
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