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TORONTO, July 2, 2020 /CNW/ - Central Timmins
Exploration Corp. ("CTEC" or the "Company") (TSXV:CTEC)
reports that, subject to regulatory approval, it has signed an
option agreement with an arm's length private vendor to acquire up
to a 100% interest in the BAM Property, located within the Golden
Triangle in northwest British
Columbia.
BAM
The BAM Property consists of ten mineral tenures that cover an
area of over 8,100 hectares, located approximately 150 kilometers
northwest of Stewart, BC.
Highway 37 and the Northwest Transmission Line are approximately 35
kilometers to the east of the property, and the Galore Creek
Project access road is 1.7 kilometers to the southeast.
The BAM Property was discovered in the 1960s when regional
exploration that was focused on copper mineralization resulted in
the discovery of the Galore Creek deposit, approximately 35
kilometers to the west, and the Schaft Creek deposit, approximately
20 kilometers to the northwest; both deposits are large copper-gold
porphyry mineralizing systems. On the BAM Property, drilling
in 1967 identified a sizeable area of copper mineralization with
minor silver in a replacement zone hosted by brecciated Lower
Permian limestone and dolomite.
More recently, exploration efforts on the BAM Property have
focused on gold. This work started in the mid-1980s when
Radcliffe Resources discovered quartz veins that assayed up to 212
grams per tonne gold in grab samples, and when Chevron Canada
Resources Limited collected channel samples from trenches that
returned up to 7.4 grams per tonne gold over 19.3 meters.
Sporadic work since that time has identified numerous other
showings, several of which were drill tested and found to host
discontinuous mineralized quartz veins. Previous work also
included a number of small soil and stream sediment sampling
programs, which combined have defined a 3-kilometre-long by
500-metre-wide corridor of highly anomalous gold–silver soil
geochemistry within a zone of hornfelsed Lower Jurassic Hazelton
Group rocks in contact with a large granitic pluton. The gold
values in soils include a considerable number which returned
greater than 0.5 grams per tonne gold, with a high of 2.76 grams
per tonne gold. The Company believes these historical results
provide an indication of the potential of the BAM Property and are
relevant to planned exploration.
The BAM property has not been systematically explored for large
porphyry related copper-gold or a bulk tonnage gold-silver
system. The Company plans to initiate a systematic
exploration program by completing airborne and ground geophysical
work, in combination with further geochemical sampling, geologic
mapping and prospecting.
Quality Assurance
Jeffrey D. Rowe, P.Geo is the
qualified person responsible for the BAM Property and has reviewed,
verified and approved the scientific and technical information in
this news release relating thereto.
Option Agreement Terms
Under the terms of the option agreement, the Company can acquire
up to a 70% interest in the BAM Property over a three year option
period by paying to the vendor: $60,000 and 200,000 shares in its capital on the
signing of the agreement; $150,000
and 200,000 shares in its capital on the first anniversary of the
agreement; $200,000 and 200,000
shares in its capital on the second anniversary of the agreement
and $550,000 and 800,000 shares in
its capital on the third anniversary of the agreement. The
Company is also required to incur exploration expenditures of
$150,000 before the first anniversary
of the agreement, $400,000 of
cumulative exploration expenditures by the second anniversary of
the agreement and $750,000 of
cumulative exploration expenditures by the third anniversary of the
agreement.
Following exercise of the option, the Company has the right for
a period of 120 days to acquire the remaining 30% interest in the
BAM Property, for a 100% total interest, on payment of $7.5 million of which up to $4 million may be paid in shares of the Company
at its election. If the Company elects to not purchase the
remaining 30% interest, the Company and the vendor shall form a
joint venture, with the Company appointed the operator.
During the first three years of the joint venture, the Company will
fund the vendor's participating interest in the joint venture.
If the vendor fails to sell its interest in the joint venture
during such three year period, the vendor's interest will convert
to a 2% net smelter returns royalty (the "nsr"), provided that the
Company will have the opportunity to purchase the vendor's interest
prior to such conversion for $7.5
million. Following the conversion of the vendor's
interest to a 2% nsr, the Company may purchase 1% of the nsr for
$2,000,000 (inflation adjusted from
2020). The vendor has also agreed to assign to the Company
two claims that form part of the BAM Property for $40,000 and a 2% nsr, 100% of which can be
purchased by the Company for $1,125,000 prior to commercial production on such
claims and 1% of which can be purchased for $300,000 (inflation adjusted from 2020) after
commercial production is achieved on such claims.
About Central Timmins Exploration Corp.
CTEC is an early-stage Canadian junior exploration company
focused on precious metals exploration and development.
Forward Looking Information
This press release contains "forward-looking information" within
the meaning of applicable securities laws that is intended to be
covered by the safe harbours created by those laws.
"Forward-looking information" includes statements that use
forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative
thereof or other variations thereof or comparable terminology. Such
forward-looking information includes, without limitation, the
Company's expectations, strategies and plans for the BAM Property,
including the Company's planned expenditures and exploration
activities.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made. Furthermore,
such forward-looking information involves a variety of known and
unknown risks, uncertainties and other factors which may cause the
actual plans, intentions, activities, results, performance or
achievements of the Company to be materially different from any
future plans, intentions, activities, results, performance or
achievements expressed or implied by such forward-looking
information. See "Risk Factors" in the Company's final prospectus
dated October 4, 2018 filed on SEDAR
at www.sedar.com for a discussion of these risks.
The Company cautions that there can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, investors should not
place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any
obligation to release publicly any revisions to forward-looking
information contained in this press release to reflect events or
circumstances after the date hereof.
Neither the Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Central Timmins Exploration Corp