VANCOUVER, BC, Jan. 28, 2021 /CNW/ - Sable Resources Ltd.
("Sable" or the "Company") (TSXV: SAE) (OTCQB: SBLRF) is pleased to
announce that the Company and its wholly-owned subsidiary,
Olivares S.A. ("Olivares"), have
signed an earn-in agreement (the "EIA") with a wholly-owned
subsidiary of South32 Limited ("South32"), to jointly explore the
Don Julio Project located in San Juan Province, Argentina (the "Project").
The Project comprises a 58,000 hectare land package containing
several Cu-Au porphyry, Ag-Au epithermal, and polymetallic skarn
targets, which were generated from detailed mapping and
geochemistry work over the past two and a half years. Sable
has assigned its option to acquire a 100% interest in the Project
from the Project's underlying owners to Olivares as part of this
transaction.
EIA Summary
The EIA grants South32 the right to acquire 65% of the shares of
Olivares by providing US$8.5 million
in exploration funding over a period of five years (the "EIA
Period") and assuming responsibility for paying 100% of the cash
option payments due to the underlying owners of the Project during
the EIA Period. At South32's election the EIA Period can be
extended by one year to a total period of six years in
consideration for South32 providing an additional US$1.5 million in exploration funding. Sable will
operate all exploration programs during the EIA Period, and will
receive a 7.5% operator fee on all qualifying exploration
expenditures. Pursuant to the terms of the EIA, to maintain
the option to acquire a 100% interest in the Project in good
standing, Sable retains the obligation to issue shares to the
underlying owners.
A technical committee comprising representatives from each of
Sable and South32 will review and approve annual exploration
programs and budgets during the EIA Period. All decisions of the
technical committee will be decided by majority vote, with South32
having a casting vote.
On satisfying the exploration funding and cash option payment
requirements under the EIA, South32 may elect to subscribe for 65%
of the shares of Olivares. Sable, Olivares and South32 would then
enter into a Shareholders' Agreement, on terms agreed and appended
to the EIA.
During the period governed by the Shareholders' Agreement (the
"Joint Venture Period"), Sable and South32 will contribute their
proportionate share of further exploration and development
expenditures or dilute on a straight-line basis. Other key terms of
the Shareholders' Agreement include:
- If South32 elects not to contribute to the first approved
program and budget of the Joint Venture Period (which budget must
be a minimum of US$4,000,000), then
its interest in Olivares will be immediately reduced to 49%, with
Sable's interest immediately increasing to 51%;
- At any time, South32 may elect to sole fund a Preliminary
Economic Assessment ("PEA") in exchange for an additional 10%
interest in Olivares, such PEA to be delivered within five years of
South32's election;
- The Shareholder with the larger interest in Olivares will have
the right to act as Operator either directly or through an
affiliate;
- For as long as South32 continues to hold the larger interest in
Olivares, South32 will have the right to appoint an affiliate to
act as the world wide marketing and distribution agent for product
produced;
- In the event that Sable or South32 dilute below a 10% interest
in Olivares, then the non-diluted party is entitled to buy out the
diluted party's participating interest; and
- At any time, should the surrender or abandonment of part of the
Project be authorized by Olivares, each shareholder will have the
right to elect to take an assignment of the surrendered or
abandoned portion, subject to any prior rights of third
parties.
The EIA is subject to a number of conditions, including receipt
of approval from the TSX-V, the execution of an Acknowledgement and
Consent Agreement between Sable, Olivares, South32 and the
underlying owners of the Project as well as the execution of an
Acknowledgement and Consent Agreement between Sable, Olivares,
South32 and Osisko Gold Royalties Ltd.
Ruben Padilla, Sable's President
and CEO stated, "We are very pleased with having signed this
agreement with South32. The 2021 work plan includes a 675
kilometre MagSurvey commencing in January, which will be followed
by ground IP over elected areas of interest. The new
geophysical data will be integrated with the available geological
and geochemical information to define and rank drill targets and
plan the initiation of the first round of drilling."
ABOUT SABLE RESOURCES LTD.
Sable is a well-funded junior grassroots explorer focused on the
discovery of new precious metal projects through systematic
exploration in endowed terranes located in favorable, established
mining jurisdictions. Sable's main focus is developing its large
portfolio of new greenfields projects to resource stage utilizing
its Upper Level Epithermal Strategy. Sable is actively exploring
the San Juan Regional Program (109,055 ha) incorporating the Don
Julio and El Fierro Projects in San Juan Province, Argentina; and the Mexico Regional Program
(1.16Mha in application, 39,000ha titled) incorporating the Vinata
and El Escarpe projects.
ABOUT SOUTH32 LTD.
South32 is a globally diversified mining and metals company.
South32's purpose is to make a difference by developing
natural resources, improving people's lives now and for generations
to come. South32 is trusted by its owners and partners to
realise the potential of their resources. South32 produces
bauxite, alumina, aluminium, energy and metallurgical coal,
manganese, nickel, silver, lead and zinc at its operations in
Australia, Southern Africa and South America. With a focus on growing its
base metals exposure, South32 also has two development options in
North America and several
partnerships with junior explorers around the world.
Related link: sableresources.com
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.
Caution Regarding Forward Looking Statements
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or future performance. The use of any of the words "could",
"intend", "expect", "believe", "will", "projected", "estimated" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on Sable's current belief or assumptions
as to the outcome and timing of such future events. Actual future
results may differ materially. Although such statements are based
on reasonable assumptions of Sable's management, there can be no
assurance that any conclusions or forecasts will prove to be
accurate.
While Sable considers these assumptions to be reasonable based
on information currently available, they may prove to be incorrect.
Forward looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking information. Such factors include risks
inherent in the exploration and development of mineral deposits,
including risks relating to changes in project parameters as plans
continue to be redefined, risks relating to variations in grade or
recovery rates, risks relating to changes in mineral prices and the
worldwide demand for and supply of minerals, risks related to
increased competition and current global financial conditions and
the COVID-19 pandemic, access and supply risks, reliance on key
personnel, operational risks, and regulatory risks, including risks
relating to the acquisition of the necessary licenses and permits,
financing, capitalization and liquidity risks.
The forward-looking information contained in this release is
made as of the date hereof, and Sable is not obligated to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained
herein.
SOURCE Sable Resources Ltd.