Strategic Position in BC's Cariboo Gold
District with Flagship FG Gold Project
VANCOUVER, BC, Jan. 5, 2021 /CNW/ - KORE Mining Ltd. (TSXV: KORE
| OTCQX: KOREF) ("KORE" or the "Company") is pleased
to provide an update on the proposed transfer of all of its
British Columbia ("BC")
gold exploration assets ("Spin Out") into a newly
incorporated company called Karus Gold Corp. ("Karus" or
"Karus Gold").
Updates and Next Steps:
- Spin Out requires approval at the virtual KORE shareholder
meeting on January 20, 2021
-
- Meeting materials filed and mailed in late December 2020
- Shareholders encouraged to vote as soon as possible and no
later than January 18, 2021 via the
instructions in the materials
- Shareholders may attend the meeting online and will be required
to register via the instructions in the materials in advance if
they wish to vote online
- Management and the Board of KORE recommends voting in favour of
the Spin Out
- Spin Out is supported by Mr. Eric
Sprott, KORE's largest shareholder
- If the Spin Out is approved and final court approval is
obtained, KORE shareholders at the distribution date will be
eligible to receive Karus shares
-
- Distribution date expected to be January
22, 2021, subject to change
- Karus shares will not be publicly listed to trade immediately
after Spin Out; listing anticipated in the first half of 2021
- Upon completion of the Spin Out, Karus intends to raise capital
via a rights offering ("Rights Offering") to all Karus
shareholders
-
- Rights Offering expected to commence in February 2021, with details to come after closing
the Spin Out
- Karus shareholders will have exclusive access to invest in
Karus via the Rights Offering, raising initial capital for Karus to
execute its strategy
Highlights of Karus
Gold:
- Unlocks value of BC assets for KORE shareholders through
creation of Karus Gold
- Dominant 1,000 km2 land position in the emerging
Cariboo Gold District with Osisko Development Corp (TSX:ODV)
investing heavily to the north
- Flagship FG Gold project open for growth after 2020 Lower Zone
discovery intercepts of:
-
- 10.0 meters of 3.9 g/t gold at 237 meters downhole
- 14.3 meters of 6.4 g/t gold at 386 meters downhole
- Controls under-explored 110 km trend including five
high-priority gold prospects
- Results from 14 FG Gold holes and five Gold Creek holes
expected through Q1 2021
Upon completion of the Spin Out, KORE will continue as a leading
gold company with a focus on growing and developing the Imperial
and Long Valley gold projects in the
US.
Scott Trebilcock, KORE's
President & CEO comments, "KORE would like to thank our
shareholders for their continued support in 2020 as we unlock value
through the spin out process. We believe the value of our BC
exploration assets are obscured by the robust economics of our
advanced Imperial and Long Valley
projects and as such, are looking forward to maximizing shareholder
value through the spin out. We expect the Cariboo region in BC will
see a major increase in exploration and development in 2021 and
beyond. The spin out of Karus enables KORE shareholders to
participate in this exciting and emerging mining district. We
encourage our shareholders to vote in favor of the spin out to
unlock value from this underappreciated asset."
Details of the Spin Out are available at
www.koremining.com/karus and materials for the special
shareholders meeting are available at
www.koremining.com/specialmeeting and under KORE's profile on SEDAR
at www.sedar.com.
About KORE's BC Gold Exploration Assets
KORE controls
a dominant 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. The north part of the Cariboo Gold District is
controlled by Osisko Development Corp (TSXV: ODV), which is
financing a major exploration and development program that will
bring attention to the Cariboo Gold District. KORE has
multiple projects in the Cariboo Gold District, including the 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 Cariboo Gold
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 km
trend defined by gold in soils and geophysics. Drilling
performed by KORE in 2020 transformed the project, opening up the
potential for both open pit and underground type
mineralization. The FG Gold project also hosts copper-gold
porphyry mineralization at the Nova Zone, discovered by KORE in
2018. Details of FG Gold Lower Zone discovery including
intercepts reported above are detailed in the November 11, 2020 Company news release.
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 2,000-meter program to
expand Gold Creek.
In connection with the transaction, the Company and Karus have
filed an updated National Instrument 43-101 compliant
Technical Report titled "Technical Report on the South Cariboo
Property, British Columbia,
Canada" effective November 15,
2020 and filed on December 16,
2020, prepared by independent qualified persons Ron Voordouw, P.Geo., Henry Awmack, P. Eng., and Equity Exploration
Consultants Ltd (the "Updated Report"). The Updated
Report replaces the previously filed technical report issued to
Eureka Resources Inc. in 2015 and amends prior disclosure regarding
mineral resources on the FG Gold and Gold Creek gold
projects. The Updated Report is available on the Company's
website at www.koremining.com/Karus and under KORE's profile on
SEDAR at www.sedar.com.
About KORE Mining
KORE is 100% owner of a portfolio of
advanced gold exploration and development assets in California and British Columbia. KORE is
supported by strategic investor Eric
Sprott who recently invested $7.0
million, bringing his total ownership to 26%. KORE
management and Board are aligned with shareholders, owning an
additional 38% of the basic shares outstanding. KORE is
actively developing its Imperial Gold project and is aggressively
exploring across its portfolio of assets.
Further information on the Spin Out and KORE can be found
on the Company's website at www.koremining.com/Karus or by
contacting us at karusgold@koremining.com or 888-455-7620.
On behalf of KORE Mining Ltd
"Scott
Trebilcock"
Chief Executive Officer
Karus Gold Spin Out Investor
Support
David Jan
1-888-455-7620
karusgold@koremining.com
KORE Investor Relations
Arlen Hansen, KIN Communications
1-888-684-6730
kore@kincommunications.com
Technical information with respect to the Cariboo Gold District,
FG Gold and the Gold Creek Projects contained in this news release
has been reviewed and approved by Michael Tucker, P. Geo. who
is KORE's VP Exploration and is the qualified person under National
Instrument 43-101 responsible for the technical matters of this
news release.
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 Karus Gold and other statements that are not
historical facts. Forward-looking statements are often identified
by terms such as "will", "may", "plan", "should", "anticipate",
"expects", "intends", "indicates" 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 and Karus Gold are forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, the expected timeline and date of completion of the
Spin Out, the ability of KORE to receive and obtain shareholder
approval and court approval, the ability of the parties to satisfy,
in a timely manner, the other conditions to closing of the Spin
Out, the future listing of Karus
Gold and the expected timeline and completion of the
anticipated Karus rights offering. There can be no assurance that
the Spin Out will be completed or that it will be completed on the
terms and conditions contemplated in this news release. The Spin
Out could be modified or terminated in accordance with its terms.
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: the Spin Out will be
completed on the terms currently contemplated, the Spin Out will be
completed in accordance with the timing currently expected without
any undue delay, all conditions to the completion of the Spin Out
will be satisfied or waived in due course and the Spin Out
Agreement will not be terminated prior to the completion of the
Spin Out, assumptions and expectations related to the trading price
of KORE and the future listing of Karus
Gold, and other expectations and assumptions concerning the
Spin Out.
In addition to the above summary, additional risks and
uncertainties inherent to the Company and its operations are
described in the "Risk Factors" 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. Other risks and uncertainties
include, among other things: the Spin Out may not be completed on
the terms, or in accordance with the timing currently contemplated,
or at all; the Company and Karus
Gold has incurred expenses in connection with the Spin Out
and will be required to pay for those expenses regardless of
whether or not the Spin Out is completed; the Company and
Karus Gold may not be successful in
satisfying the conditions to the Spin Out, including failing to
obtain KORE shareholder approval; the possibility of adverse
reactions or changes in business relationships resulting from the
announcement or completion of the Spin Out; the failure to realize
the expected benefits of the Spin Out; and other risks inherent to
KORE's current business and/or factors beyond its control which
could have a material adverse effect on KORE or the ability to
consummate the Spin Out.
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.
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SOURCE Kore Mining