(TheNewswire)
Aurora, Ontario / TheNewswire / July 26, 2018 - Tri Origin Exploration Ltd (TSX-V:TOE) (“Tri Origin” or the “Company”) is pleased to announce that it has entered into an agreement with MetalsTech Limited (“MTC”) for the Company’s Nipissing (now named North Bay Lake (“NBL”) cobalt property in the Cobalt region of east-central Ontario.
MTC has agreed to make cash payments and share issuances to Tri Origin as well as complete exploration work commitments over a two year period to acquire a 100% interest in the Bay Lake North property (the “Considerations”). In addition, performance share issuances will be made to Tri Origin based on MTC’s share price performance over the two year term and if resources are delineated within the first four years of exploration. If MTC completes the Considerations, Tri Origin will be granted a 1.75% net smelter return royalty (“NSR”) on future production. If the Considerations are not met, all interest in the Bay Lake North property will be returned to Tri Origin.
BLN is comprised of 51 staked legacy claims covering an area of approximately 10,600 hectares located 10 kilometres west of the town of Cobalt, Ontario. The property is underlain by Proterozoic sedimentary rock and Nipissing diabase sills which are the primary host rocks for cobalt mineralization throughout the region. These rocks contain a number of historic occurrences of cobalt plus copper, nickel and silver which have not been investigated since the 1960’s. The McLaren Lake group of occurrences are located near the central part of the property and a number of small pits and shafts were excavated at these occurrences during the early 1900’s.
MTC is an Australian lithium and cobalt exploration company listed on the Australian Securities Exchange. MTC’s board and management have an extensive background in the industry and are focused on exploration for cobalt in the Cobalt region and hold a number of lithium projects in Quebec.
MTC has an aggressive exploration program planned for the property. In a news release issued by MTC to the Australian Securities Exchange on July 25, 2018 MTC states “The three potential drill targets will be systematically appraised via a combination of soil sampling and detailed geological mapping by the MTC field team in the coming weeks. These targets are considered “walk up” drill targets for the planned program, which will commence during August 2018. The proposed BLN drill program will comprise of eight (8) to ten (10) diamond drilling holes for approximately 1,000 – 1,500m at BLN”.
The main terms of agreement for MTC to earn 100% interest in the BLN property are (subject to completion of due diligence and regulatory approval);
- An initial consideration payment to Tri Origin of $10,000 deposit and $90,000 on completion of due diligence and, the issuance of 750,000 fully-paid, ordinary shares of MTC which will be subject to a six-month escrow period.
- A deferred consideration payment to Tri Origin of $100,000 on the first anniversary of the agreement and the issuance of an additional 750,000 fully-paid, ordinary shares of MTC which will be subject to a six-month escrow period.
- Exploration expenditures during year 1 of $300,000 and $500,000 during year 2.
- Performance bonus share issuance to Tri Origin of 500,000 MTC shares if the MTC share price is greater than a volume weighted average price over a 20 day period of $0.35 during the first year.
- Performance bonus share issuance to Tri Origin of 500,000 MTC shares if the MTC share price is greater than a volume weighted average price over a 20 day period of $0.50 during the second year.
Upon completion of the above Considerations MTC will grant a 1.75% NSR to Tri Origin. If the above Considerations are not met, all interest in the BLN property will be returned to Tri Origin.
Additional performance bonus shares will be issued to Tri Origin based on resource definition.
- 750,000 fully-paid, ordinary shares of MTC will be issued to Tri Origin (subject to a six month escrow period) if MTC delineates a JORC code or NI 43-101 compliant Indicated Resource of 1 million tonnes at a minimum grade of 0.5% cobalt equivalent within a four year period from the date of the agreement.
- 1,500,000 fully-paid, ordinary shares of MTC will be issued to Tri Origin (subject to a six month escrow period) if MTC delineates a JORC code or NI 43-101 compliant Indicated Resource of 2 million tonnes at a minimum grade of 0.5% cobalt equivalent within a four year period from the date of the agreement.
The agreement with MTC provides an opportunity for Tri Origin to significantly benefit from successful exploration within the now very active Cobalt region of Ontario. And importantly, will allow the Company to continue to focus its resources on its portfolio of gold and base metal projects in the Canadian Shield. Tri Origin’s shareholders will be kept up to date with progress of the MTC work as results are received by Tri Origin.
For information about Tri Origin, please visit www.triorigin.com or SEDAR www.sedar.com or contact:
Dr. Robert Valliant, President
Tri Origin Exploration Ltd.
Tel: (905) 727-1779
E-mail: invest@triorigin.com
Tri Origin Exploration Ltd. is publicly listed on the TSX Venture Exchange under the trading symbol TOE. Tri Origin is a leading Canadian exploration company with gold and base metal projects in Canada.
CAUTIONARY STATEMENT:
Neither
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.
This
press release may contain forward-looking statements that are subject
to known and unknown risks and uncertainties that could cause actual
results to vary materially from targeted results. Such risks and
uncertainties include those described in Tri Origin's periodic reports
including the annual report or in the filings made by Tri Origin from
time to time with securities regulatory authorities.
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