Connemara Mining Company plc Group Eleven Acquires Teck Stake in Stonepark (5544Q)
September 13 2017 - 2:00AM
UK Regulatory
TIDMCON
RNS Number : 5544Q
Connemara Mining Company plc
13 September 2017
13(th) September 2017
Connemara Mining Company plc ("Connemara")
Group Eleven Acquires 76.56% Teck Stake in Stonepark Zinc
Licences
Connemara Maintains 23.44% Stake
The board of Connemara Mining Company plc (AIM: CON) have been
informed that Group Eleven Resources Corp. ("G11"), a private
company, has acquired the 76.56% interest held by Teck Ireland
("Teck") in TILZ Minerals, the joint venture company, which holds
six (6) prospecting licences covering the Stonepark zinc project in
Limerick, Ireland. Connemara owns the remaining 23.44%.
G11 is a private Canadian company with extensive base metal
licence holdings in Ireland. MAG Silver Corp. and Teck Resources
(both listed Canadian companies) hold 22.0% and 6.3% respectively
of the equity on a fully diluted basis. G11 have announced that
they are preparing to list publicly in Canada later in 2017.
John Teeling, chairman, stated "This is very good news for
shareholders. Stonepark is an advanced asset which we believe has
great potential, a view shared by our new partner G11. Rather than
accept a cash and royalty offer from G11 we have decided that the
best interest of shareholders lies in keeping the 23.44% interest
in Stonepark. The consideration which Connemara would have received
assuming all buybacks represents approximately 75% of the current
market capitalisation of the company. We look forward to a
resumption of active exploration on the block. "
Stonepark
The Stonepark property covers an area of 183.5 square kilometres
and hosts three main pods of known mineralization (Stonepark North,
Stonepark and Stonepark West), located approximately 2 to 4
kilometres west of the Pallas Green zinc deposit. Known
mineralisation at the Stonepark Project is generally shallow,
approximately 200-300m.
Best drill intersections at Stonepark previously released by
Connemara include:
-- TC-2638-045 - 7.45m @ 27.8% Zn+Pb (starting from 209.1m depth) at Stonepark North
-- TC-2638-026 - 7.20m @ 15.3% Zn+Pb (starting from 216.1m depth) at Stonepark North
-- TC-2638-036 - 5.35m @ 16.4% Zn+Pb (starting from 202.7m depth) at Stonepark North
-- TC-2638-099 - 7.20m @ 8.5% Zn+Pb (starting from 244.8m depth) at Stonepark West
-- TC-2638-004 - 4.00m @ 15.1% Zn+Pb (starting from 376.1m depth) at Stonepark
Zinc sulphide mineralization at Stonepark North has been
continuously intersected by drilling (six holes in total) for over
550m in strike.
The Project also hosts five (5) zinc prospects (Crecora,
Rockfield, Rochestown-Fedamore, Rathmore and Limerick South). Each
prospect hosts preliminary levels of drilling and at least some
zinc mineralization (e.g. 7.5% Zn+Pb over 0.62m at Crecora; 0.29%
Zn+Pb over 13.0m at Fedamore; and 0.44% Zn+Pb over 8.0m at Limerick
South).
Significant mineralisation was first discovered at Stonepark in
late 2007. The remaining five prospects are at a relatively early
stage of exploration. The three known pods of mineralisation at
Stonepark continue, in G11's opinion, to be largely open. G11 views
Stonepark as an advanced exploration asset and has stated that its
primary focus will be to expand known mineralisation on the
block.
Consideration for the Acquisition
Consideration for the above acquisition by G11 of the Teck stake
is summarised below:
-- C$2,150,000 in cash - Paid
-- Net smelter return (NSR) royalty of 4.5% (on 76.56% of production) with buy-back provisions:
o 0.5% for C$2,000,000 - at any time
o 1.0% for C$1,000,000 - on delivery of a preliminary economic
assessment (PEA)
o 1.0% for C$1,000,000 - on delivery of a preliminary
feasibility study (PFS)
o 1.0% for C$3,000,000 - on delivery of a bankable feasibility
study (BFS)
This would leave Teck with a 1.0% NSR if all buy-back provisions
were exercised.
Connemara was offered equivalent terms as above and if Connemara
had chosen to sell then the consideration for Connemara's stake
(assuming all buybacks were exercised) would be C$2.80 million and
an NSR of 1% on 23.44% of production.
Following discussions with G11 the board of Connemara decided to
retain its 23.44% interest rather than sell on the same terms as
Teck.
Information on Connemara Mining
Connemara is a diversified exploration company with principal
assets in gold, zinc and lead exploration licences in Ireland. The
Company holds interests in a total of 35 licences, including joint
ventures with Teck at the Oldcastle block, with Hendrick Resources
in Gold and the newly announced joint venture with G11.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
ENDS
Enquiries:
Connemara Mining Company
Plc
John Teeling, Chairman +353 (0) 1 833 2833
Jim Finn, Director
+353 (0) 87 272
Patrick Cullen, CEO 1748
Northland Capital Partners
Limited
Matthew Johnson / Gerry +44 (0) 203 861
Beaney 6625
John Howes / Bonnie
Hughes (Broking)
+44 (0) 207 138
Blytheweigh 3204
+44 (0) 783 185
Nick Elwes 1855
+44 (0) 781 784
Camilla Horsfall 1793
Teneo PSG
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
www.connemaramining.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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