ROUYN-NORANDA, QC, July 20,
2021 /CNW Telbec/ - X-Terra Resources Inc. (TSXV:
XTT) (FRANKFURT: XTR) is pleased to announce that it has completed
its phase 1, 2021 drill exploration program on its wholly-owned
Troilus East property, located approximately 135 kilometres from
the town of Chibougamau in the
province of Québec.
The program has exceeded X-Terra Resources' expectations, as the
principal southwest target has revealed an important alteration
system developed about three kilometres east of the Troilus Mine
infrastructure.
Overall, the alteration system and mineralization observed,
provides initial validation of the high priority anomaly at the
Troilus East property. The intermediate volcanics and intrusions
can be considered as the main host rock for the polymetallic
sulphides, presenting as stringers, laminations, disseminated clots
in contact with centimetric quartz veins or fractures. In addition,
foliated and biotite-rich altered gabbro also hosts significant
amount of disseminated pyrrhotite, reaching locally 10% in
association with trace amounts of chalcopyrite.
A total of 10 holes totalling 1,560 metres was completed in this
inaugural drill program. Two holes that were also planned to
the south-east have been postponed due to extreme terrain
challenges. They will be revisited during the second phase of
drilling planned for later this summer.
X-Terra has now commenced planning the follow up exploration
program, including additional geochemistry, with the expectation of
extending the known mineralized corridor further to the northeast.
In addition, a second round of drilling is also being planned and
will be finalized once the current drill assays are received and
compiled by the technical team.
In other news, X-Terra announces that it intends to conduct a
non-brokered private placement financing for aggregate gross
proceeds of up to $2.1 million. The
private placement will consist of up to 28,000,000 units to be
issued at a price of $0.075 per unit.
Each unit will be comprised of one common share and one common
share purchase warrant of X-Terra (the "Warrants"). Each
Warrant will entitle the holder thereof to acquire one additional
common share of X-Terra at a price of $0.11 per share for a period of 24 months from
the closing date of the private placement. The Warrants will be
subject to an acceleration clause such that if the closing price of
the common shares of X-Terra on the TSX Venture Exchange is at
least $0.20 per share for a period of
10 consecutive trading days at any time during the period of the
time commencing after the closing date of the private placement and
the expiry date of the Warrants, X-Terra will have the option to
elect to accelerate the expiry date for the Warrants, such
that the Warrants will expire on the 30th day after the
date on which notice of such acceleration is given by X-Terra.
Qualified Person
Jeannot Théberge, P. Geo registered in the Province of Québec, a
consultant to X-Terra Resources, a qualified person under
National Instrument 43–101 – Standards of Disclosure for Mineral
Projects has reviewed the technical contents of this news
release and has approved the disclosure of the technical
information contained herein.
About X-Terra Resources Inc.
X-Terra Resources is a resource company focused on acquiring and
exploring precious metals and energy properties in Canada.
Forward-Looking Statements
This news release contains statements that may constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking information may
include, among others, statements regarding the future plans,
costs, objectives or performance of X-Terra Resources, or the
assumptions underlying any of the foregoing. In this news release,
words such as "may", "would", "could", "will", "likely", "believe",
"expect", "anticipate", "intend", "plan", "estimate" and similar
words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should
not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of whether, or the
times at or by which, such future performance will be achieved. No
assurance can be given that any events anticipated by the
forward-looking information will transpire or occur, including the
exploration programs and development (including any drilling
programs) of the Troilus East property, or if it does so, what
benefits X-Terra Resources will derive from the Troilus East
property, the timing for the closing and the anticipated size of
the private placement. Forward-looking information is based on
information available at the time and/or management's good-faith
belief with respect to future events and are subject to known or
unknown risks, uncertainties, assumptions and other unpredictable
factors, many of which are beyond X-Terra Resources' control. These
risks, uncertainties and assumptions include, but are not limited
to, those described under "Financial Instruments" and "Risk and
Uncertainties in X-Terra Resources' Annual Report for the fiscal
year ended December 31, 2020, a copy
of which is available on SEDAR at www.sedar.com, and could cause
actual events or results to differ materially from those projected
in any forward-looking statements. X-Terra Resources does not
intend, nor does X-Terra Resources undertake any obligation, to
update or revise any forward-looking information contained in this
news release to reflect subsequent information, events or
circumstances or otherwise, except if required by applicable
laws.
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 the release.
SOURCE X-Terra Resources Inc.