TIDMEEE
RNS Number : 4556N
Empire Metals Limited
01 February 2021
Empire Metals Limited / AIM: EEE / Sector: Natural Resources
1 February 2021
Empire Metals Limited ('Empire' or the 'Company')
Corporate Update, Eclipse Gold Project Drilling Programme
Update,
& Board Changes
Empire Metals Limited, the AIM-quoted exploration and resource
development company, is pleased to provide an update on specific
strategic initiatives by the Company, along with an update on the
progress of drilling at the Eclipse Gold Project, located 55km
north-east of Kalgoorlie, Western Australia ('Eclipse' or the
'Project').
Strategic Focus and Eclipse Gold Project Update
Empire Metals' primary strategic focus in 2021 is the
development of gold mining interests in Western Australia,
including building on the continued success at Eclipse and
continuing active discussions with a number of parties regarding
potential acquisitions to further strengthen the Company's
portfolio.
The second phase of drilling at Empire's 75% held Eclipse Gold
Project is now well advanced, with approximately 3,800m of the now
4,400m Reverse Circulation programme drilled in January 2021. The
drilling has intercepted a number of wide quartz veins in areas
beyond and below the Eclipse old workings, and assays are awaiting
laboratory analysis to determine the degree of mineralisation.
Assays for two holes have been received to date:
-- Drillhole ECRC21_003 intersected 8m @ 2.83 g/t Au, from 118m, and
-- Drillhole ECRC21_004 intersected 3m @ 2.60 g/t Au from 134m.
Drillhole ECRC21_004 deviated from the planned trajectory, but
hole ECRC21_003 confirmed the extension of the main mineralised
structure at depth, further to the north-west.
Sale of Bolnisi Copper and Gold Project in Georgia
As announced on 26 October 2020, Empire has concluded a
definitive and binding Sale and Purchase Agreement (subject to
certain conditions) for the sale of the Company's Georgian assets
to Candelaria Mining Corp. (TSX.V: CAND) ("Candelaria") for an
all-equity total consideration of 7 million Canadian Dollars
('CAD'). This offer remains in place, however it is subject to a
right of first refusal ('ROFR') by the Company's joint venture
partners in Georgia, Caucasian Mining Group ('CMG'). Whilst CMG has
indicated an interest in exercising its right, it has yet to
provide Empire with an acceptance of the offer which would give the
Company confidence that it will receive the full consideration
offered by Candelaria as required under the shareholders agreement.
Empire continues to seek a resolution to the situation which would
offer the best value to Empire shareholders.
Munni Munni
As described above, the Company's strategy is now firmly
focussed on the development of Eclipse as well as the acquisition
of further projects that complement this asset. As a result, the
Company has decided not to extend the agreement to acquire the
Munni Munni palladium project (refer RNS dated 20 July 2020). This
agreement therefore lapsed as at 31 January 2021.
Board and Management Changes
As part of the Company's strategy to continue to focus on
Western Australia, Mr. Mike Struthers, CEO of Empire, will step
down as CEO with immediate effect. Mr Struthers will continue as a
Non-Executive Director of the Company as well as being engaged as a
Technical Consultant. In this capacity he will continue to strive
for a solution in the Company's best interests in Georgia, and
continue to provide technical guidance on the development of the
Company's projects across its portfolio. Mr. Struthers will take up
the position of CEO of Candelaria Mining with immediate effect.
Also, Non-Executive Director David Ajemian has resigned from the
Empire board effective 31 January 2021.
In support of the new strategic direction the Company is also
seeking to appoint a suitably experienced replacement CEO to lead
the Company through its next phase of growth.
Mike Struthers, CEO, said: "Our continued success at Eclipse in
confirming extensions to the mineralisation, and the additional
opportunities being presented to us to expand our gold project
interests in Western Australia, underscores the merits of the
Company's new strategic focus. Empire is in a far better position
now than this time last year, and we now have a good platform from
which to continue growing the Company. The joint venture and
negotiations relating to CMG's ROFR are ongoing and the Candelaria
offer remains available. The political situation in Georgia is
currently very dynamic, and we will continue to strive for a
positive outcome for the Company in Georgia. We look forward to
providing further updates on our efforts at Eclipse and on other
fronts in due course."
Neil O'Brien, Chairman, said: "On behalf of the Board I'd like
to thank Mike for all his efforts in leading the Company through
some challenging times with such focused commitment and then into
an exciting new project in one of the world's premier gold
districts in Western Australia. We look forward to Mike's continued
significant involvement in obtaining a satisfactory outcome in
Georgia and technical input on the development of our successful
Eclipse Project.
"I also would like to thank David for his contributions to the
Board over the past year and wish him well in all of his future
endeavours."
Competent Person Statement
The information in this announcement that relates to drilling
results is based on information reviewed by Mr. Mike Struthers, who
is a Member of the Institute of Mining, Metallurgy and Materials
(IOM3), a Chartered Engineer with the IOM3, and a Member of the
Australian Institute of Mining and Metallurgy. Mr. Struthers is an
employee of Empire Metals Ltd. He has sufficient experience,
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking, to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' and as a qualified person as defined in
the Note for Mining and Oil & Gas Companies which form part of
the AIM Rules for Companies. Mike Struthers has reviewed this
announcement and consents to the inclusion in the announcement of
the matters based on his information in the form and context in
which it appears.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
**ENDS**
For further information please visit www.empiremetals.co.uk or
contact:
Mike Struthers Empire Metals Ltd Company Tel: 020 7907
9327
Greg Kuenzel Empire Metals Ltd Company Tel: 020 7907
9327
Ewan Leggat S. P. Angel Corporate Nomad & Broker Tel: 020 3470
Finance LLP 0470
Adam Cowl S. P. Angel Corporate Nomad & Broker Tel: 020 3470
Finance LLP 0470
Damon Heath Shard Capital Partners Joint Broker Tel: 020 7186
LLP 9950
Susie Geliher St Brides Partners Ltd PR Tel: 020 7236
1177
Beth Melluish St Brides Partners Ltd PR Tel: 020 7236
1177
About Empire Metals Limited
Empire Metals' primary focus is on the Eclipse Gold Project in
Western Australia which produced 954 tonnes @ 24.6 g/t Au for
754.25 oz Au from the Eclipse shaft which operated up to 1910. In
addition to the known mineralisation at and surrounding the Eclipse
old workings, recent geophysics and geochemistry work has
highlighted further potential mineralisation at two additional
targets north-west of Eclipse, the Houdini and Easy prospects.
The Company also has a 50% joint venture in Georgia which covers
an area of over 860 sq km and has a 30-year mining licence. The
joint venture covers a variety of targets and projects ranging from
greenfield exploration / target definition phase through
intermediate target-testing phases to more advanced projects
including Kvemo Bolnisi East which is due to advance to Feasibility
Study.
The Board continues to evaluate opportunities through which to
realise the value of its wider portfolio and reviews further assets
which meet the Company's investment criteria.
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END
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