CSE – MICH
Chrome-Puddy is located in the Thunder Bay Mining Division, of
The Property is comprised of historically identified
- Grab samples analyzed by the Thunder Bay Resident Geologist office report values including 5.02% Cu, 2.1% Ni, 0.42 g/t gold (Au), 1.5 g/t Platinum (Pt) and 3.75 g/t Palladium (Pd);
- Grab sample assays of serpentinite with magnetite veins by Pavey Ark included 1.39 % Ni, 0.45g/t Pt+Pd, 0.65 g/t Au;
- Multiple untested airborne Dighem, ground MaxMinEM and VLF-EM conductors remaining;
- Ni-rich magnetite zone with historical drill intersections included 48 m assaying 0.36% Ni, 0.17% Cu, 9.1% recoverable iron (Fe);
- Historical resource of 30 M tons grading 0.27% Ni, 7.2% recoverable Fe, and 0.02 Co to a depth of 400 ft (
Commerce Nickel Mines Ltd. Annual Report 1966);
This historical resource was prepared by
Chrome-Puddy currently has an approved Ontario Junior Exploration Program (OJEP) grant in the amount of
Following a successful closing of the proposed acquisition, the Company anticipates moving the Property forward through systematic exploration with the goal of defining a bulk tonnage mineralized body.
Also included in the terms of the LOI, is the transfer of a 100% interest in Pavey's Danby Triangle Property ("
As consideration for a 100% interest in the Property, as well as the Additional Property, the LOI contemplates the following cash payments, share issuances and agreed upon terms to be honoured by MICH:
- a one-time cash payment to Pavey of
$200,000 ; - the issuance of 5,000,000 MICH shares to Pavey;
- a 1.5% NSR afforded to Pavey;
$150,000 to Pavey on each of the 2nd ,3rd and 4th anniversaries of the closing of the Transaction;- share issuances valued at
$250,000 on each of the 2nd, 3rd and 4th anniversaries of the closing of the Transaction. - work program funding to advance the project as follows:
- Year 1 of
$550,000 minimum, and - Years 2 and 3 of
$700,00 per year minimum.
Completion of the acquisition of Chrome-Puddy remains subject to several conditions, including the satisfactory completion of due diligence, receipt of any regulatory approvals, the negotiation of definitive documentation, including an option agreement and a share purchase agreement, among other documents, and the completion of a minimum
Trading in the shares of the Company has been halted since the Company announced its intention to acquire the Pecoy copper project (the "Pecoy Acquisition") on
The Company is a
On behalf of
"David Suda"
President and Chief Executive Officer
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to: the proposed acquisition of the Property and Additional Property, and concurrent
Although management of the Company believe that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These risk factors include, but are not limited to: the Transaction may not close on the terms set forth herein, or at all; risks relating to the availability of financing; risks relating to the receipt of all requisite approvals for the Transaction, including the approval of the Exchange and shareholders; risks associated with the business of the Company; business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; changes in interest and currency exchange rates; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); political risk and social unrest; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting mining concessions); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays in the supply of equipment and services; and other risk factors as detailed from time to time.
The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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1 | OJEP is an initiative of the |
SOURCE
© Canada Newswire, source