Candelaria Announces Board and Management Changes, Signs Definitive Agreement to Acquire Interest in Bolnisi Gold and Copper ...
October 26 2020 - 8:30AM
Candelaria Mining Corp. (TSXV:CAND, OTC PINK:CDELF) (the
“
Company”) is pleased to announce that Mr. Mike
Struthers has agreed to be appointed as Chief Executive Officer as
part of a transaction to acquire the interests of Empire Metals
Ltd. (AIM:EEE) (“
Empire”) in the Bolnisi gold and
copper project in the Republic of Georgia (“the
Transaction”). In conjunction with his upcoming
appointment as CEO, Mr. Struthers will join the Company's Board of
Directors. Candelaria is also pleased to announce that Dr. Neil
O’Brien will join the Candelaria board as a director. These
appointments are subject to the closing of the Transaction planned
for December 7, 2020.
Mr. Struthers is currently
Chief Executive Officer with Empire, and is a seasoned professional
and Chartered Engineer with 40 years of international mining
experience which includes:
- Executive roles in a London listed
junior mining company, and a private Russian mining company;
- Seven years as Project Manager and
Projects Director with Lundin Mining Corporation (“Lundin”),
responsible for developing and executing a range of strategic
medium and long-term brownfield growth initiatives at Lundin’s
operations in Portugal and Chile.
- In addition to his time at Lundin
Mining Corporation, Mr. Struthers was Chief Operating Officer and
technical director for a Russian minerals development company with
large base and precious metals assets in Siberia, and a director
and principal geotechnical engineer for mining consultancy AMC
Consultants (“AMC”) between 1994 and 2007. At AMC he led teams on a
range of projects for major miners such as Rio Tinto Group and BHP
Billiton, and a wide variety of other mid-tier and junior
companies.
- His experience includes project
management in feasibility and engineering studies, project
development, technical reviews, project and financial evaluations,
strategic planning, mine expansions construction management, and
project due diligence over a wide range of commodities and
jurisdictions including base-metals, gold, and diamonds; in
jurisdiction such as Africa, Australia, North America, South
America, Europe and Russia. Prior to his consulting career he held
operational and management positions in mining operations in Africa
and Australia.
Dr. O’Brien is
a consulting economic geologist and former mining executive with
the following experience:
- Over three decades of mining
industry service including Board of Director roles in public and
private mineral exploration companies;
- International experience on five
continents in all stages of mineral exploration and development of
economic mineral resource projects, mining project evaluation and
strategic corporate development activities;
- Dr. O’Brien retired in 2018 from
Lundin as Senior Vice President, Exploration & New Business
Development after 13 years of service that saw Lundin grow from a
small junior mining company into a leading international
diversified mining company.
Mr. Ramon Perez, President of Candelaria,
commented, “We are very pleased and looking forward to having Mr.
Struthers and Dr. O’Brien join our team. They bring very valuable
experience and expertise in exploration and development of precious
metals assets on a global basis to our Company. We look forward to
drawing upon this experience as we continue to build a portfolio of
mining projects and step up the development & exploration
activities even further. The acquisition of the interest in the
Bolnisi Project provides Candelaria exposure to an emerging
gold-copper district and under the continued leadership of Mr.
Struthers and Dr. O’Brien the full potential of the Bolnisi Project
can be realized.”
DEFINITIVE AGREEMENT TO ACQUIRE INTEREST IN
BOLNISI GOLD AND
COPPER
PROJECT
Candelaria Mining Corp. is pleased to announce
it has entered into a definitive agreement to acquire 100% of GMC
Investments LTD (“GMC”), a wholly-owned subsidiary
of Empire, which holds a 50% interest in the Bolnisi Gold and
Copper Project in Georgia. As consideration for the purchase of
GMC, Candelaria has agreed to pay a total of CAD 2 million via
the issuance of 4 million shares (at a deemed price of $0.50 per
share) to Empire. Upon approval of a reserves report on the Kvemo
Bolnisi East project by the State Reserves Committee in Georgia
(“Milestone 1”), an additional payment of $1 million
("Milestone 1 Price") to be satisfied via the
issue of Candelaria common shares based on a previous 10-day
average closing price. Furthermore, upon completion of a NI43-101
compliant technical report disclosing a Mineral Resource on the
Dambludi project (“Milestone 2”), or one other project other than
Kvemo Bolnisi East, an additional payment of CAD 2 million
("Milestone 2
Price") to be satisfied via the issue of
Candelaria common shares based on a previous 10-day average closing
price. And finally, upon completion of a positive feasibility study
and final investment decision on the gold oxides at Kvemo Bolnisi
East ("Milestone 3"), an
additional payment of $2 million ("Milestone
3 Price") to be satisfied via the
issue of Candelaria common shares based on a previous 10-day
average closing price.
The purchase is subject to a
right-of-first-refusal (“ROFR”) in favour of Empire’s Georgian
joint venture partner, Caucasian Mining Group LTD (“CMG”), which
must be exercised within 20 business days from Empire submitting an
offer. This offer has been submitted to CMG concurrent with this
announcement. Closing of the acquisition of GMC is also subject to
stock exchange approval.
About GMC Investments GMC is
the owner of a 50% interest in JSC Georgian Copper and Gold
(“GCG”), a private Georgian company, which in turn
holds the rights to mining projects under a 30-year mining
concession in Georgia. The Bolnisi gold and copper project is
located in Georgia and situated within a highly underexplored part
of the prolific Tethyan Belt, a well-known geological belt and host
to many high-grade gold, copper and polymetallic deposits and
producing mines. The Bolnisi concession covers an area of
over 860 sq km with a variety of gold-copper and gold-polymetallic
exploration prospects and resource development projects including
the resource PEA stage Kvemo Bolnisi East (“KBE”) gold-copper
project that is located only 7 km from the Madneuli gold-copper
mine.
Dambludi is a narrow-vein epithermal deposit
with high Au grades in quartz-sulphide veins in the east, and
high-grade polymetallic sulphide veins in the north and west. The
project has extensive sampling of historical exploration adits, and
historical drilling only extended down to around 100m below
surface, leaving the deposit open at depth.
About Candelaria Mining
Candelaria Mining is a Canadian-based gold
development and exploration company with a portfolio of highly
prospective projects in Mexico, one of the world’s best mining
jurisdictions. Candelaria currently owns 100% of Caballo Blanco
Project and the Pinos Gold Project.
For more information on projects, please see the
technical reports prepared pursuant to NI 43-101 which are
available on the Company’s website at www.candelariamining.com.
ON BEHALF OF THE BOARD,
Ramon PerezPresident
For further information, please contact:
Investor RelationsEmail: info@candelariamining.com Phone:
604-349-5992
Cautionary Note Regarding
Forward-looking Statements: This press release contains
certain “forward-looking statements” and “forward-looking
information” under applicable Canadian securities laws concerning
the business, operations and financial performance and condition of
Candelaria Mining Corp. (“Candelaria” or “Candelaria Mining”).
Forward-looking statements and forward-looking information include,
but are not limited to, statements with respect to estimation of
mineral resources at mineral projects of Candelaria;
Forward-looking statements are based on the opinions and estimates
as at the date the statements are made, and are based on a number
of assumptions and 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
statements. Many of these assumptions are based on factors and
events that are not within the control of Candelaria and there is
no assurance they will prove to be correct. Factors that could
cause actual results to vary materially from results anticipated by
such forward-looking statements include variations in metal grades,
changes in market conditions, variations in recovery rates,
risks relating to international operations, fluctuating metal
prices and currency exchange rates, changes in project parameters,
the possibility of project cost overruns or unanticipated costs and
expenses, labor disputes and other risks of the mining industry,
failure of plant, equipment or processes to operate as
anticipated.
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.
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