Rogue Closes Acquisition of the Snow White Project, a Permitted Silica/Quartz Quarry in Northern Ontario
- Property has existing Silica/Quartz Pit-Quarry Aggregate Permit
- High SiO2 and low impurities confirmed in historic bulk furnace testing by Silicon Metal Producers and positive thermal strength index test results from Rogue’s due diligence
- Preliminary NI 43-101 technical report expected to be completed in Q1 2018
TORONTO, Dec. 14, 2017 (GLOBE NEWSWIRE) -- Rogue Resources Inc. (TSX-V:RRS) (“Rogue” or the “Company”) is pleased to announce closing of its acquisition of the Snow White Quartz Project (“Snow White” or the “Project”), located near Massey, Ontario, Canada from a Sudbury-based prospector (the “Seller”) pursuant to an agreement (the “Agreement”) previously announced on October 20, 2017.
“We received promising results from our confirmatory due diligence and are pleased to have closed this acquisition,” said Sean Samson, President and CEO of Rogue Resources. “We are excited to begin advancing the Project, marketing the Snow White material, developing a viable Ontario business that is expected to generate cash flow for our investors and for the Company’s investment in further growth across its portfolio.”
The Agreement
Under the terms of the Agreement, Rogue has purchased the Project by delivering, among other things, the following to the Seller:
- cash payment at closing (the “Closing”) of CAD$25,000;
- issuance of 150,000 Rogue common shares (“Common Shares”) at Closing, subject to the approval of the TSX Venture Exchange (“TSXV”);
- additional cash payments of up to an aggregate of CAD$725,000 following Closing upon the earlier of achievement of certain milestones and anniversaries of Closing (the “Payment Period”);
- additional issuance of up to an aggregate of 900,000 Common Shares during the Payment Period, subject to the approval of the TSXV; and
- grant of a 2% net return on all quartz/silica from the Project, subject to a reservation by the Company of a buy back right upon payment of an additional $2 million to the Seller.
Upon an uncured event of default under the Agreement, the Project shall revert to the Seller and the Company shall have no interest in the Project.
Project Overview
The Snow White property consists of three staked mining claims representing approximately 160 hectares, located approximately 26 km northwest of the town of Massey, 125 km west of the city of Sudbury and 500 km north-northwest of Toronto. The Project currently has Class A and Class B Pit-Quarry-Aggregate Permits for unlimited annual silica/quartz production. Rogue has met with the Ontario Ministry of Natural Resources and Forestry to discuss and verify the existing aggregate permit.
The area surrounding the Project is equipped with good infrastructure, an existing access road, and is also proximate to deep-water ports on Lake Huron that the Company expects could be used to access export markets from the Project. Rogue has been in contact with local contractors, as well as the port’s owners, for preliminary operations and logistics contracting discussions.
The work completed on Snow White at this stage is preliminary in nature and the limited drill data and metallurgical analysis are too speculative geologically to have economic considerations applied to them that would enable them to be categorized even as mineral resources. There is no certainty that this Project will be put into production.
Rogue plans to complete a preliminary National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) technical report on Snow White and file to SEDAR in January 2018.
Similar to the past two years, the Company is also developing a detailed plan for 2018, outlining the major events anticipated for the year.
An investor conference call will be held in January to discuss Snow White and the 2018 Plan in further detail.
About Rogue Resources Inc.
Rogue is a mining company focused on generating positive cash flow. Not tied to any metal, it looks at rock value and good grade deposits that can withstand all stages of the metal price cycle. The Company remains focused on advancing its silica/quartz business with the Silicon Ridge Project in Quebec and the Snow White Project in Ontario, exploring its other assets, including the gold potential at Radio Hill, and identifying additional projects or mines that meet its criteria.
For more information visit www.rogueresources.ca.
Qualified Person
The Company’s Projects are under the direct technical supervision of Paul Davis, P.Geo., and Vice-President of the Company. Paul is a Qualified Person (“QP”) as defined by NI 43-101.
For additional information regarding this news release please contact:
Sean Samson
info@rogueresources.ca
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 news release.
Cautionary Note Regarding Forward-Looking Statements:
This news release contains certain statements or disclosures relating to the Company that are based on the expectations of its management as well as assumptions made by and information currently available to the Company which may constitute forward-looking statements or information (“forward-looking statements”) under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that the Company anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words “will”, “expect”, “anticipate”, “plan” and similar expressions.
In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following: preliminary NI 43-101 technical report; the ability of the Project to generate cash flow for investors and the Company; the infrastructure and logistical features of the area surrounding the Project; and the timing of an investor conference call.
The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of the Company including, without limitation: business strategies and the environment in which the Company will operate in the future; commodity prices; exploration and development costs; mining operations and development parameters; regulatory restrictions; activities of governmental authorities (including changes in taxation); currency fluctuations; the global economic climate; and competition.
The Company believes that the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation: general economic, market and business conditions; the preliminary NI 43-101 technical report may not be completed in the timelines anticipated, in the manner anticipated or at all; the Company’s properties may not have the results currently anticipated by the Company; the Company may be unable to resolve geological, mechanical or operational issues in the timelines anticipated, in the manner anticipated or at all; increased costs and expenses; reliance on industry partners; risks related to operations, government and environmental regulation, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; risks in the marketability of minerals; fluctuations in the commodity prices; fluctuation in foreign exchange rates and interest rates; stock market volatility; and certain other risks detailed from time to time in the Company’s public disclosure documents including, without limitation, those risks identified in this news release, and in the Company’s most recent annual and interim management’s discussion and analysis, copies of which are available on the Company’s SEDAR profile at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive and are cautioned not to place undue reliance on these forward-looking statements.
The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.
Rogue Resources Inc. 44 Victoria Street, Suite 1612 Toronto, ON M5C 1Y2 CANADA Toll Free: 1-888-764-1981, Direct: +1-647-243-6581 info@rogueresources.ca