All figures in Canadian dollars.
VANCOUVER, May 7, 2019 /CNW/ - KORE Mining Ltd. (TSXV:
KORE) ("KORE" or the "Company") is pleased to
announce that it has entered into definitive agreements for a
$4,000,000 investment ("Investment")
by Macquarie Bank Ltd. and its affiliates (collectively
"Macquarie"). As part of the Investment, Macquarie will subscribe
for 6,000,000 common shares of Kore and acquire a 1% NSR royalty
(the "Macquarie Royalty") on the Imperial Project.
Investment Highlights
- Provides funding for KORE to advance permitting of the Imperial
Project, generating a compelling investment opportunity with
proximity to existing operations.
- Includes provisions for certain rights for Macquarie to provide
project development financing.
- Kore maintains a right to buy back the Macquarie Royalty on the
following terms:
i)
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within 6 months of
the closing date for the Macquarie Royalty, if the Company is
acquired at a price of no less than $0.75 per share, the Company
may buy back the Macquarie Royalty for $4,750,000; or
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ii)
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within greater than 6
months but less than 12 months of the closing date for the
Macquarie Royalty, if the Company is acquired at a price of no less
than $1.00 per share, the Company may buy back the Macquarie
Royalty for $6,750,000;
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Newmont Goldcorp Corporation also holds a 1% NSR royalty on the
Imperial Project.
Adrian Rothwell, President and
CEO stated, "We welcome this strategic investment from
Macquarie, one of the world's major resource investors, as we
continue to advance and de-risk the Imperial Project. The Imperial
Project, located in Imperial County,
California, approximately 17 kilometres from the producing
Mesquite Mine owned by Equinox Gold Corp., will contribute
meaningfully to the local economy as we advance the project through
the permitting process and towards a development decision."
Closing of the Investment is subject to the approval of the TSX
Venture Exchange.
About Macquarie
Macquarie is a global leader in providing financing to the
resources sector. Macquarie Bank Limited is part of Macquarie
Group, a global provider of banking, financial, advisory,
investment and funds management services. Founded in 1969,
Macquarie employs over 15,700 people and has assets under
management of AUD$551.3 billion (as of March
31, 2019).
About KORE
KORE is a development stage company that offers exposure to
precious metals exploration and development in North America, with a corporate strategy
focused on advancing its California development and British Columbia advanced exploration stage
projects.
KORE owns a 100% interest in the Imperial gold development project
("Imperial"), located on Bureau of Land Management (BLM)
administered land in a current mining district of Imperial County, California, USA. Imperial is approximately 17km SSE of the
operating Mesquite Mine recently acquired by Equinox Gold (TWXV:
EQX) for US$158 million. Imperial boasts excellent access and
infrastructure.
For more information on historical work performed on the
Imperial Project please refer to the Company's website at
www.koremining.com.
Our focus on the Imperial Project is supported by an historic
Environmental Impact Study/Report completed in compliance with
then-existing US Federal and California environmental regulations. The
Imperial project inherits the
analysis and design of a mine plan that meets Bureau of Land
Management and California Surface Mining And Reclamation Act
requirements. KORE is advancing and updating background permit
studies to meet current regulations and considers the project to
have excellent prospects for near-term success as a result of
extensive and thorough consultation to date.
KORE has adopted a collaborative, inclusive and mutual-benefit
driven approach to engagement to build and strengthen stakeholder
relationships and looks forward to permitting success on this
low-impact, high-return project.
Table 1: Combined historical1 estimates of Kore
Imperial resources2
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Size
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Grade
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Contained
Au
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Source
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Au
Cutoff
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(tonnes)
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(g/t)
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(oz)
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(g/t)
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Indicated
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Imperial
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45,762,947
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0.60
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879,000
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2012 PEA
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0.17
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Inferred3
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Imperial
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76,334,175
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0.53
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1,298,000
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2012 PEA
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0.17
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A Qualified Person
has not done sufficient work to classify the historical estimates
as current resources and KORE is not treating the historical
estimates as current resources. Significant data compilation,
re-drilling, re-sampling and data verification may be required by a
Qualified Person before the historical estimates at the Projects
can be classified as current resources.
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The historical
mineral resources in this news release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council.
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Imperial Mineral
Historical Resource Estimation Parameters: a) Grade estimation is
based on assay samples composited to 20ft intervals. Grade capping
thresholds were determined following a detailed statistical
analysis of the data for the entire mineralized domains varied from
0.02 to 0.2 ounces per ton (opt) gold (Au). b) Resource model grade
blocks were estimated using Gemcom GEMSTM modeling software based
on a traditional wireframe interpretation constructed from a
sectional interpretation of drilling data. c) The database for the
Imperial model consisted of 349 RC holes totalling 190,134 feet of
drilling. A total of 36,361 analyses were considered for use in the
resource estimate. d) The modelled gold mineralized zone was
subdivided into three domains displaying different strike or dip
directions with a total length of 3,200 ft, width up to 800ft and
average thickness of 85ft in the East area and 1,200ft in length,
1,000ft in width and average thickness of 90ft to 120ft in the West
area, dipping from 5 to 35 degrees e) A bulk density value of 0.077
ton per cubic foot was used and derived from 9 core holes
consisting of 32 samples collected in a 1994 and 1995 drilling
program.
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Mineral resources
were reported within an optimized pit shell using a gold price of
US$1,400/oz with a process recovery of 80%. g) Process costs used
were US$1.50/ton and G&A was US$0.40/ton. Open pit mining costs
were US$1.20/ton and sustaining capex was US$0.50/ton with open pit
slopes of 45 degrees.
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Qualified Person Statement
Technical information with respect to the Projects contained
in this news release has been reviewed and approved by David S. Smith, CPG, who is KORE's designated
independent qualified person for the purposes of NI 43-101.
________________________________
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1
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The reader is
cautioned that the above referenced "Historical Resource" is
considered historical in nature and as such is based on prior data
and reports prepared by previous property owners. The work
necessary to verify the classification of this mineral resource
estimate has not been completed and the resource estimate,
therefore, cannot be treated as NI 43-101 current resource verified
by a Qualified Person. There can be no assurance that any of the
historical resources, in whole or in part, will ever become
economically viable.
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2
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Mineral Resources are
not mineral Reserves and do not have demonstrated economic
viability. There is no certainty that all or any part of the
mineral Resource will be converted into mineral Reserves. The
estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues.
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3
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The quantity and
grade of reported Inferred resources in this estimation are
uncertain in nature and there has been insufficient exploration to
define these Inferred resources as an Indicated or Measured mineral
resource and it is uncertain if further exploration will result in
upgrading them to an Indicated or Measured mineral resource
category.
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This news release does not constitute an offer to sell or a
solicitation of an offer to sell any KORE common shares in
the United States. The KORE common
shares to be issued in connection with the Transaction have not
been and will not be registered under the
United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any state securities laws and may
not be offered or sold within the United
States or to U.S. persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary Statement Regarding Adjacent Properties and
Forward-Looking Information
This news release contains forward-looking statements
relating to the future operations of the Company and other
statements that are not historical facts. Forward-looking
statements are often identified by terms such as "will", "may",
"should", "anticipate", "expects" and similar expressions. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the future plans and objectives of the Company are forward-looking
statements that involve 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. Such factors include, but are not
limited to: uncertainties related exploration and
development; the ability to raise sufficient capital to fund
exploration and development; changes in economic conditions or
financial markets; increases in input costs; litigation,
legislative, environmental and other judicial, regulatory,
political and competitive developments; technological or
operational difficulties or inability to obtain permits encountered
in connection with exploration activities; and labor relations
matters. This list is not exhaustive of the factors that may affect
the Company's forward-looking information. Important factors
that could cause actual results to differ materially from the
Company's expectations also include risks detailed from time to
time in the filings made by the Company with securities
regulations.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will update or
revise publicly any of the included forward-looking statements as
expressly required by Canadian securities law.
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SOURCE Kore Mining