Spin-Out Would Create a Pure Play
Exploration Company with A High Grade Gold Discovery
and Strategic Land Position in British
Columbia
VANCOUVER, BC, Nov. 24, 2020 /CNW/ - KORE Mining Ltd.
(TSXV: KORE) (OTCQX: KOREF) ("KORE" or the "Company")
announces that the Board of Directors is considering maximizing the
value of its gold portfolio by splitting KORE's US development
assets and Canadian exploration assets into separate publicly
listed companies by way of a "spin-out" ("Transaction") to
KORE shareholders. The Board has authorized management to
consider the various transactional options to accomplish this
objective in the most tax efficient and value creating
manner. It is anticipated a decision will be made in the
coming weeks and a Transaction could be completed as early as Q1
2021.
If the Transaction is completed, the new stand-alone publicly
listed gold company would include the Canadian exploration assets,
consisting of a commanding 1,000 kilometers square claim position
in the Cariboo Gold District including the FG Gold and Gold Creek
gold projects – see Figure 1. The Cariboo region of
British Columbia is an active and
experienced mining jurisdiction that is host to Osisko Gold
Royalties Ltd's (TSX:OR) Cariboo Gold Project and several large
operating copper-gold mines. KORE would retain the US gold
development pipeline assets with the Imperial gold project and the Long Valley gold
project.
Scott Trebilcock, President and
CEO stated, "With a dominant 1,000 square kilometre position in a
highly prospective gold district, including the recent
transformational high-grade discovery at FG Gold, KORE's South
Cariboo gold assets are an exceptional gold exploration
story. It is also a great time for the Cariboo gold district
with Osisko's aggressive exploration and development activity
attracting attention and capital. The spin-out would directly
expose KORE shareholders to the value creation potential of this
impressive exploration story."
The Company recently intercepted 14.3 meters of 6.4 g/t gold at
386 meters downhole at FG Gold (see November
11, 2020 news release). This new discovery, which
extends over 300 meters downdip from the known resource, opens up
underground potential and could have a profound impact of the size
and grade of the FG Gold deposit – see Figure 2.
Assays are pending for additional 14 holes over a 1,780 meters of
lateral strike with 7 holes intersecting quartz veining with
visible gold (see pictures on website). Drilling continues with
2,000 metres planned to expand Gold Creek through mid-December.
Mr. Trebilcock continued, "KORE will retain the Imperial and Long Valley development assets;
simple, low cost gold heap leach projects in the US, each with
their own robust returns and the potential to produce nearly
250,000 ounces of gold per year. KORE would remain attractive to
investors looking for exposure to low cost gold development and
potential mergers and acquisitions that quality assets can generate
as the gold cycle matures."
A final decision has not been made and there can be no assurance
that this evaluation will result in a spin-out or other similar
transaction. The Company will provide further updates at such time
as the Board approves a specific transaction or otherwise concludes
that disclosure is necessary or appropriate.
About KORE's South Cariboo Exploration Assets
KORE controls 1,000 square kilometers of claims in its South
Cariboo Gold District of British Columbia. The claims host
110 km of structural trend that is highly prospective for gold
deposits. KORE has multiple projects in the District,
including FG Gold and Gold Creek gold projects. Much of the
area is under-explored and wide open for additional
discoveries. The Cariboo region is a prolific gold
region. The District was host to the Cariboo gold rush in the
late 1800's, followed by a long history of modern gold
mining. The Cariboo region is accessible with local power, a
well developed road network and skilled local labour.
The FG Gold project hosts an orogenic gold deposit on a 20
kilometer trend defined by gold in soils and geophysics.
KORE's 2020 drilling transformed the project, opening up the
potential for both open pit and underground type
mineralization. The project also hosts copper-gold
porphyry mineralization at the Nova Zone, discovered by KORE in
2018.
The Gold Creek project is an orogenic gold discovery centered on
the "Camp Zone" which show similarities to the high-grade zone of
the nearby Spanish Mountain Gold Deposit (TSXV:SPA).
The Camp Zone's near surface mineralization currently
extends over 400 metres along strike and is open along both strike
and at depth. KORE is currently drilling a planned 2,000
meter program to expand Gold Creek.
About KORE's US Development Assets
Imperial is a 100% owned gold
project located in Imperial County,
California about 10 miles from the operating Mesquite mine
owned by Equinox Gold Corp. (TSX: EQX). In 2020, KORE
completed a Preliminary Economic Assessment for an open pit heap
leach operation yielding a post-tax NPV5% of $US 343 million and an IRR of 44% using
$1,450 per ounce gold. KORE
also owns the Mesquite-Picacho District capturing the 28 km gold
trend from Equinox's operating Mesquite mine, through Imperial to the now closed Picacho mine.
The trend is underexplored and has the potential to host additional
gold deposits.
Long Valley is a 100% owned gold project located in Mono County, California. The Long Valley
deposit is an intact epithermal gold deposit with a shallow, large
2.5 by 2 kilometer oxide gold footprint. In 2020, KORE
completed a Preliminary Economic Assessment for an open pit heap
leach operation yielding a post-tax NPV5% of $US 273 million and an IRR of 48% using
$1,600 per ounce gold. KORE is
currently permitting a drill program to expand the shallow oxide
mineralization and test for high grade sulphides at depth.
About KORE Mining Ltd.
KORE is 100% owner of a portfolio of advanced gold exploration
and development assets in California and British Columbia. KORE,
supported by strategic investor Eric
Sprott; and insiders, including management and Board, own
64% of the basic shares outstanding. Further information on
KORE and its assets can be found on the Company's website at
www.koremining.com and at www.sedar.com, or by contacting us
as info@koremining.com or by telephone at (888) 407-5450.
On behalf of KORE Mining Ltd
"Scott
Trebilcock"
Chief Executive Officer
(888) 407-5450
Technical information with respect to the Imperial deposit and project contained in this
news release has been reviewed and approved by Marc Leduc, P.Eng., who is KORE's designated
qualified person under National Instrument 43-101 for the purposes
of this news release.
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.
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 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. Forward-looking statements in this news
release include, but are not limited to, statements with respect
to: the potential gold structures at the District deposits, next
steps and timing regarding follow-up programs at the District,
results of the PEA, including future project opportunities, future
operating and capital costs, closure costs, the projected
NPV, IRR, timelines, permit timelines, and the ability to obtain
the requisite permits, economics and associated returns of the
Imperial and Long Valley Projects,
the technical viability of the Imperial and Long Valley Projects, the market
and future price of and demand for gold, the environmental impact
of the Imperial and Long Valley
Projects, and the ongoing ability to work cooperatively with
stakeholders, including the local levels of government. Such
forward-looking statements, and any assumptions upon which they
are based, are made in good faith and reflect our current judgment
regarding the direction of our business. Management believes that
these assumptions are reasonable. Forward looking information
involves known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information.
Such factors include, among others: risks related to
exploration and development activities at the Company's projects,
and factors relating to whether or not mineralization extraction
will be commercially viable; risks related to mining
operations and the hazards and risks normally encountered in the
exploration, development and production of minerals, such as
unusual and unexpected geological formations, rock falls, seismic
activity, flooding and other conditions involved in the extraction
and removal of materials; uncertainties regarding regulatory
matters, including obtaining permits and complying with laws and
regulations governing exploration, development, production, taxes,
labour standards, occupational health, waste disposal, toxic
substances, land use, environmental protection, site safety and
other matters, and the potential for existing laws and regulations
to be amended or more stringently implemented by the relevant
authorities; uncertainties regarding estimating mineral resources,
which estimates may require revision (either up or down) based on
actual production experience; risks relating to fluctuating metals
prices and the ability to operate the Company's projects at a
profit in the event of declining metals prices and the need to
reassess feasibility of a particular project that estimated
resources will be recovered or that they will be recovered at the
rates estimated; risks related to title to the Company's
properties, including the risk that the Company's title may be
challenged or impugned by third parties; the ability of the Company
to access necessary resources, including mining equipment and
crews, on a timely basis and at reasonable cost; competition within
the mining industry for the discovery and acquisition of properties
from other mining companies, many of which have greater financial,
technical and other resources than the Company, for, among other
things, the acquisition of mineral claims, leases and other mineral
interests as well as for the recruitment and retention of qualified
employees and other personnel; access to suitable infrastructure,
such as roads, energy and water supplies in the vicinity of the
Company's properties; and risks related to the stage of the
Company's development, including risks relating to limited
financial resources, limited availability of additional financing
and potential dilution to existing shareholders; reliance on its
management and key personnel; inability to obtain adequate or any
insurance; exposure to litigation or similar claims;
currently unprofitable operations; risks regarding the ability of
the Company and its management to manage growth; and potential
conflicts of interest.
In addition to the above summary, additional risks and
uncertainties are described in the "Risks" section of the Company's
management discussion and analysis for the year ended December 31, 2019 prepared as of April 27, 2020 available under the Company's
issuer profile on www.sedar.com.
Forward-looking statements contained herein are made as of
the date of this news release and the Company disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results, except as may
be required by applicable securities laws. 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 statements. Accordingly,
readers should not place undue reliance on forward-looking
information.
There is no certainty that all or any part of the mineral
resource will be converted into mineral reserve. It is uncertain if
further exploration will allow improving the classification of the
Indicated or Inferred mineral resource. Mineral resources are
not mineral reserves and do not have demonstrated economic
viability.
The Imperial and Long Valley
PEAs are preliminary in nature, include inferred mineral resources
that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that
the Imperial or Long Valley PEA
will be realized. There is no certainty that all or any part
of the mineral resource will be converted into mineral reserve. It
is uncertain if further exploration will allow improving the
classification of the Indicated or Inferred mineral resource.
Mineral resources are not mineral reserves and do not have
demonstrated economic viability.
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SOURCE Kore Mining