TSX, NYSE American
Symbol: TMQ
VANCOUVER, Dec. 14, 2017 /PRNewswire/ - Trilogy
Metals Inc. (TSX, NYSE-MKT: TMQ)
("Trilogy" or "Trilogy Metals") is pleased
to announce that South32 Limited (ASX/JSE/LSE: S32)
("South32") has committed to fund the US$10 million 2018 program and budget for the
Bornite Project. The funds, which represent the second tranche of
US$10 million, maintains the Option
Agreement (see below) in good standing, and will be transferred
before January 31, 2018. The 2018
program will include in-fill and off-set drilling to better define
and expand the high grade copper resources at Bornite. The 2018
Program was recently approved by the joint Trilogy-South32
Technical Committee.
Trilogy Metals recently completed the first US$10 million exploration drill program at
Bornite that was funded by South32. The 2017 program had been
previously approved by the joint Technical Committee and was
focused on drilling the extensions of mineralization last drilled
by the Company in 2013. Results of this year's exploration program
at the Bornite Project were released by Trilogy Metals on
September 18, 2017 (https://Trilogy
PR Sep 18 2017) and December 4, 2017 (https://Trilogy PR Dec 4 2017). The 2017 drilling program doubled
the size of the known mineralized footprint and continues to
demonstrate that the high-grade Bornite copper resource system is
open to further expansion.
Agreement
On April 10, 2017 Trilogy
announced it had entered into an agreement with South32 whereby
Trilogy has granted South32 an option to form a 50/50 joint venture
with respect to Trilogy's Alaskan assets, known collectively as the
Upper Kobuk Mineral Projects ("UKMP"), which includes the Arctic
and Bornite Projects, the Exploration and Option to Lease Agreement
with NANA Regional Corporation, Inc. ("NANA"), and the remainder of
Trilogy's state mining claims along the 100km volcanogenic massive
sulphide belt. South32 must contribute a minimum of US$10 million each year, for a maximum of 3
years, to keep the option in good standing ("Initial Funding").
South32 may exercise its option at any time to form the 50/50 joint
venture ("JV"). To subscribe for 50% of the JV, South32 will
contribute a minimum of US$150
million, plus any amounts Trilogy spends at the Arctic
Project over the initial three years to a maximum of US$5 million per year (the "Subscription Price"),
less an amount of the Initial Funding contributed by South32
(https://Trilogy PR April 10
2017).
About Trilogy Metals
Trilogy Metals Inc. is a metals exploration company focused on
exploring and developing the Ambler mining district located in
northwestern Alaska. It is one of
the richest and most- prospective known copper-dominant districts
located in one of the safest geopolitical jurisdictions in the
world. It hosts world-class polymetallic VMS deposits that contain
copper, zinc, lead, gold and silver, and carbonate replacement
deposits which have been found to host high grade copper
mineralization. Exploration efforts have been focused on two
deposits in the Ambler mining district - the Arctic VMS deposit and
the Bornite carbonate replacement deposit. Both deposits are
located within the Company's land package that spans approximately
143,000 hectares. The Company has an agreement with NANA Regional
Corporation, Inc., a Regional Alaska Native Corporation that
provides a framework for the exploration and potential development
of the Ambler mining district in cooperation with local
communities. Our vision is to develop the Ambler mining district
into a premier North American copper producer.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation including the United States Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, included herein, including,
without limitation, the future operating or financial performance
of the Company, interpretation of drill results, planned
expenditures and the anticipated activity at the UKMP Projects, are
forward-looking statements. Forward-looking statements are
frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential",
"possible", and similar expressions, or statements that events,
conditions, or results "will", "may", "could", or "should" occur or
be achieved. These forward-looking statements may include
statements regarding perceived merit of properties; exploration
plans and budgets; mineral reserves and resource estimates; work
programs; capital expenditures; timelines; strategic plans; market
prices for precious and base metals; or other statements that are
not statements of fact. Forward-looking statements involve various
risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from the Company's expectations include the
uncertainties involving the need for additional financing to
explore and develop properties and availability of financing in the
debt and capital markets; uncertainties involved in the
interpretation of drilling results and geological tests and the
estimation of reserves and resources; the need for cooperation of
government agencies and native groups in the development and
operation of properties as well as the construction of the access
road; the need to obtain permits and governmental approvals; risks
of construction and mining projects such as accidents, equipment
breakdowns, bad weather, non-compliance with environmental and
permit requirements, unanticipated variation in geological
structures, metal grades or recovery rates; unexpected cost
increases, which could include significant increases in estimated
capital and operating costs; fluctuations in metal prices and
currency exchange rates; and other risks and uncertainties
disclosed in the Company's Annual Report on Form 10-K for the year
ended November 30, 2016 filed with
Canadian securities regulatory authorities and with the United
States Securities and Exchange Commission and in other Company
reports and documents filed with applicable securities regulatory
authorities from time to time. The Company's forward-looking
statements reflect the beliefs, opinions and projections on the
date the statements are made. The Company assumes no obligation to
update the forward-looking statements or beliefs, opinions,
projections, or other factors, should they change, except as
required by law.
Cautionary Note to United States Investors
The Bornite Technical Report have been prepared in accordance
with the requirements of the securities laws in effect in
Canada, which differ from the
requirements of U.S. securities laws. Unless otherwise indicated,
all resource and reserve estimates included in this press release
have been prepared in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101") and the
Canadian Institute of Mining, Metallurgy, and Petroleum Definition
Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a
rule developed by the Canadian Securities Administrators which
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the United States Securities and Exchange
Commission ("SEC"), and resource and reserve information contained
therein may not be comparable to similar information disclosed by
U.S. companies. In particular, and without limiting the generality
of the foregoing, the term "resource" does not equate to the term
"reserves". Under U.S. standards, mineralization may not be
classified as a "reserve" unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made. The
SEC's disclosure standards normally do not permit the inclusion of
information concerning "measured mineral resources", "indicated
mineral resources" or "inferred mineral resources" or other
descriptions of the amount of mineralization in mineral deposits
that do not constitute "reserves" by U.S. standards in documents
filed with the SEC. Investors are cautioned not to assume that any
part or all of mineral deposits in these categories will ever be
converted into reserves. U.S. investors should also understand that
"inferred mineral resources" have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. Under Canadian rules, estimated "inferred
mineral resources" may not form the basis of feasibility or
pre-feasibility studies except in rare cases. Disclosure of
"contained ounces" in a resource is permitted disclosure under
Canadian regulations; however, the SEC normally only permits
issuers to report mineralization that does not constitute
"reserves" by SEC standards as in-place tonnage and grade without
reference to unit measures. The requirements of NI 43-101 for
identification of "reserves" are also not the same as those of the
SEC, and reserves reported by the Company in compliance with NI
43-101 may not qualify as "reserves" under SEC standards.
Accordingly, information concerning mineral deposits set forth in
this press release or the Bornite Technical Report may not be
comparable with information made public by companies that report in
accordance with U.S. standards.
SOURCE Trilogy Metals Inc.