TSX-V: NDR
VANCOUVER, BC, Oct. 28, 2020 /CNW/ - New Dimension Resources
Ltd. (TSXV:NDR) (the "Company", New Dimension" or "NDR") is pleased
to announce that it has entered in to a Binding Letter of Intent
("LOI") with Cerrado Gold Inc. ("Cerrado") for the sale of its 100%
interest in its Argentine subsidiary, Minera Mariana Argentina S.A. ("Minera
Mariana")(the "Transaction"). Minera
Mariana is owner of the Las Calandrias and Los Cisnes
gold-silver projects, in addition to an extensive portfolio of
exploration concessions in the Eastern Deseado Massif, Santa Cruz Province, southern Argentina. The
transaction is subject to successful completion of due diligence
and is expected to close on or around November 30, 2020.
Cerrado is owner and operator of the Minera Don Nicolas ("Don
Nicolas") gold mine, a 1,000 tonne per day gold mining/processing
facility located immediately adjacent to Minera Mariana's Las Calandrias project.
Highlights of the Transaction
- New Dimension will receive USD
50,000 in cash within 10 days of signing of the Binding
LOI.
- New Dimension will receive CAD 2.25
million in Cerrado shares. The exact price and number of
shares to be issued will be calculated based on the price of
Cerrado's shares as determined in anticipation of a concurrent
financing with its planned listing on either the Toronto Stock
Exchange or TSX Venture Exchange (expected to be completed by
December 31, 2020).
- New Dimension will retain indirect exposure to future
exploration and operational success at both Las Calandrias and Don
Nicolas through its shareholding in Cerrado.
Eric Roth, New Dimension's
President and CEO, commented today: "I am very pleased to be
announcing today the sale of our Argentine subsidiary, Minera Mariana, to Cerrado Gold. This agreement
will allow the Las Calandrias project, in particular, to benefit
greatly from the exploration and operational expertise of the Don
Nicolas team, with its geographical proximity to Don Nicolas' current mining/processing
operations at Paloma and Martinetas also providing Las Calandrias
with synergies for potential future development.
With the divestiture of Minera
Mariana, the Company will now be able to focus its
activities on advancing its recently acquired Scandinavian projects
- the high-grade copper-rich Løkken and Kjøli massive sulfide
projects in Norway, and the
Southern Gold Line orogenic gold project in Sweden - as well as its two Canadian
high-grade gold Joint Ventures - Domain and Savant Lake. With the Company's renewed focus
on a quality mix of high-grade gold and copper projects in
favourable jurisdictions within the northern hemisphere, I look
forward to keeping the market informed as we advance our projects
towards drilling."
Las Calandrias Project Overview
Las Calandrias is an advanced-stage gold-silver project located
immediately adjacent to Don Nicolas'
mining operations at Paloma and Martinetas. The project currently
contains two main mineralized zones – i) the bulk-tonnage,
dome-hosted Calandria Sur deposit and ii) the high-grade Calandria
Norte and Morena vein/breccia zones. The Calandria Sur zone is
located along the southern limit of the Company's claim block and
extends across this boundary into Don
Nicolas' claim block (where it is known as the Escondido
mineralized zone). The high-grade Calandria Norte and Morena
gold-silver vein/breccias lie along NE-trending structures in the
central portion of the Las Calandrias claim block and were the
focus of the Company's most-recent (2018) drilling. Further
potential still exists to expand the known mineralized zones at
Calandria Norte, Morena, and the sub-parallel Despreciada/Nido vein
zones through drilling.
Qualified Persons and Disclosure Statement
The technical information in this news release has been prepared
in accordance with Canadian regulatory requirements set out in NI
43-101, and approved by Eric Roth,
the Company's President & CEO, a director and a Qualified
Person under NI 43-101. Mr. Roth holds a Ph.D. in Economic
Geology from the University of Western
Australia, is a Fellow of the Australian Institute of Mining
and Metallurgy (AusIMM), and is a Fellow of the Society of Economic
Geologists (SEG). Mr. Roth has over 25 years of experience in
international minerals exploration and mining project
evaluation.
On Behalf of the Board of New Dimension Resources Ltd.
"Eric
Roth"
__________________________
Eric Roth, Ph.D.,
FAusIMM
President & CEO
About New Dimension Resources Ltd
New Dimension is engaged in the acquisition, exploration, and
development of quality mineral resource properties in favourable
jurisdictions with a focus on high-grade gold and base metal
deposits. The Company's precious metals focus is on the discovery
through exploration of high-grade gold deposits on its recently
optioned Southern Gold Line Project (Sweden), as well as on its active Joint
Ventures with Ethos Gold Corp. at Savant Lake (Ontario) and Yamana Gold Inc. at Domain
(Manitoba), and the divestiture of
Sierra Blanca (Argentina) to Austral
Gold Ltd. The Company's base metals focus is on the discovery of
high-grade copper-rich VMS deposits on the district-scale land
positions around the past-producing Løkken and Kjøli mines in
central Norway. Field activities
are underway on all projects, with the primary focus being to
advance priority targets to drilling.
Cautionary Notes and Forward-looking
Statements
This news release contains forward-looking information within
the meaning of applicable securities
legislation. Forward-looking information is typically
identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events. Such
statements include, without limitation, statements regarding the
future results of operations, performance and achievements of New
Dimension, including the timing, completion of and results from the
exploration and drill programs described in this release.
Although the Company believes that such statements are
reasonable, it can give no assurances that such expectations will
prove to be correct. All such forward-looking information is
based on certain assumptions and analyses made by New Dimension in
light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are appropriate in the
circumstances. This information, however, is subject to a variety
of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected
in the forward-looking information. Important factors that could
cause actual results to differ from this forward-looking
information include those described under the heading "Risks and
Uncertainties" in New Dimension's most recently filed MD&A. New
Dimension does not intend, and expressly disclaims any obligation
to, update or revise the forward-looking information contained in
this news release, except as required by law. Readers are cautioned
not to place undue reliance on forward-looking information.
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.
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SOURCE New Dimension Resources Ltd.