THUNDER BAY, ON, Oct. 12, 2021 /CNW/ - Clean Air Metals Inc.
("Clean Air Metals" or the "Company") (TSXV: AIR) (FRA: CKU)
(OTCQB: CLRMF) is pleased to announce that it has paid,
for and on behalf of Benton Resources Inc. ("Benton") (TSX:V
BEX), the sum of CAD $1 Million
directly to Rio Tinto Exploration Canada Inc. ("RTEC") as Vendor,
pursuant to the terms of the definitive option agreement (the
"Option Agreement") entered into between the Company and
Benton in order to satisfy a
payment requirement of Benton
under its pre-existing option with RTEC (see previous press release
dated January 6, 2020 and
May 14, 2020). The Company acquired
an option to acquire a 100% right, title and interest in and to the
Escape Lake Property (the "Escape Lake Property"), subject to a
1.0% net smelter return royalty to be retained by RTEC, from
Benton under the Option Agreement,
with such option conditional on Benton exercising its pre-existing option to
acquire the Escape Lake Property from RTEC and under the Option
Agreement, the Company has agreed to make all of the payments of
Benton to RTEC that are required
in order for Benton to exercise
the pre-existing option. Clean Air Metals agreed to pay to
RTEC an aggregate of C$6 million in
order for Benton to exercise the
pre-existing option, C$3 million of
which was originally paid by Benton to RTEC on October 9, 2019, and C$1
million of which was paid by the Company to RTEC on
October 9, 2020. The remaining
financial obligation to RTEC on behalf of Benton is $1
million due October 9,
2022.
In addition, pursuant to the Option Agreement outlining the
terms of a definitive share purchase agreement dated January 6, 2020 entered into between the Company
and Magma Metals Pty Ltd. ("Magma"), the Company completed the
acquisition of 100% of Panoramic Resources Limited's indirect
subsidiary, Panoramic PGMs (Canada) Ltd. ("Pan PGMs"), which owns the
Thunder Bay North Property (the "TBN Property"), hosting the
Current Lake Deposit. Pan PGM's is now a 100% wholly-owned
subsidiary of Clean Air Metals. In consideration of the acquisition
of Pan PGMs, Clean Air Metals has also agreed to pay to Magma in
equal installments over a three-year period, an aggregate of
C$9 million, C$4.5 million of which was paid on closing of the
transaction on May 14, 2020, and
C$1.5 million of which was paid on
May 14, 2021. Two payments of
$1.5 million remain by May 13, 2022 and May 13,
2023 respectively.
The Escape Lake Property and the TBN Property are collectively
referred to as the "TBN Project". The Company has the right to
prepay all remaining property payments at any time. There are no
additional exploration or other spending commitments required to
fully vest the Option Agreement.
Social Engagement
Clean Air Metals Inc. and its
wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Thunder Bay
North Project is on the traditional territories of the Fort William
First Nation, Red Rock First Nation and Biinjitiwabik
Zaaging Anishinabek. The parties together are the Cooperating
Participants in a Memorandum of Agreement dated January 9,
2021.
The Company is also in discussions with Red Sky Metis
Independent Nation and the Metis Nation of Ontario and other
non-proximate First Nation communities. Woodland Heritage
Northwest, a Metis-owned consultancy has been retained to conduct
archaeological studies on the Thunder Bay North Project and
surrounding areas.
About Clean Air Metals Inc.
Clean Air Metals' flagship
asset is the 100% owned, high grade Thunder Bay North Project, a
platinum, palladium, copper, nickel project located near
the City of Thunder Bay,
Ontario and the Lac des Iles Mine owned by Impala Platinum.
The Clean Air Metals project hosts the Current Lake Deposit and
magma conduit and the Company is actively exploring the Escape Lake
Deposit, a twin structure to the Current Lake Deposit. Executive
Chairman Jim Gallagher and CEO Abraham
Drost lead an experienced team of geologists and engineers who
are using the Norilsk magma conduit stratigraphic and mineral
deposit model to guide ongoing exploration and development studies.
As the former CEO of North American Palladium Ltd. which owned the
Lac des Iles Mine prior to the sale to Impala Platinum
in December 2019, Jim Gallagher and team are
credited with the mine turnaround and creation of significant value
for shareholders.
ON BEHALF OF THE BOARD OF DIRECTORS
"Abraham Drost"
Abraham Drost, Chief Executive
Officer of Clean Air Metals Inc.
Website: www.cleanairmetals.ca
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note
The information contained herein contains "forward-looking
statements" within the meaning of applicable securities
legislation. Forward-looking statements relate to information that
is based on assumptions of management, forecasts of future results,
and estimates of amounts not yet determinable. Any statements that
express predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not
statements of historical fact and may be "forward-looking
statements." Forward-looking statements are subject to a variety of
risks and uncertainties which could cause actual events or results
to differ from those reflected in the forward-looking statements,
including, without limitation: political and regulatory risks
associated with mining and exploration; risks related to the
maintenance of stock exchange listings; risks related to
environmental regulation and liability; the potential for delays in
exploration or development activities or the completion of
feasibility studies; the uncertainty of profitability; risks and
uncertainties relating to the interpretation of drill results, the
geology, grade and continuity of mineral deposits; risks related to
the inherent uncertainty of cost estimates and the potential for
unexpected costs and expenses; results of technical studies,
benchmark reports, and the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations; risks related to commodity price
fluctuations; and other risks and uncertainties related to the
Company's prospects, properties and business detailed elsewhere in
the Company's disclosure record. Should one or more of these risks
and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward-looking statements. Investors are cautioned
against attributing undue certainty to forward-looking statements.
These forward-looking statements are made as of the date hereof and
the Company does not assume any obligation to update or revise them
to reflect new events or circumstances, except in accordance with
applicable securities laws. Actual events or results could differ
materially from the Company's expectations or projections.
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SOURCE Clean Air Metals Inc.