Toronto - Buchans Resources Limited (the 'Company' or 'Buchans'), a Canadian mineral exploration and development company, reports its financial results and results of operations for the second quarter ended June 30, 2022.
This news release should be read in conjunction with the Company's interim financial statements and the associated management's discussion and analysis (MD&A) for the six-month period ended June 30, 2022, which are available on the Company's website at www.BuchansResources.com or under the Company's profile at www.sedar.com.
Buchans flagship project is the historic, high-grade Buchans VMS base metal mining camp in central Newfoundland, Canada. Recognized internationally as one of the world's richest and highest grade VMS camps, the Company is currently working to advance the project under a Collaboration Agreement with Boliden Mineral AB, a leading European mining and metals producer of zinc, copper, lead, and nickel. Buchans is also exploring several gold properties in central Newfoundland, including three properties being explored as joint ventures funded largely by joint venture partners. In keeping with the Company's strategy of exploring districts and opportunities with demonstrated potential for exceptional mines, Buchans also has interests in several additional projects, including other VMS base metal properties near Buchans, gold properties in central Newfoundland and northern Labrador, and nickel-copper-cobalt properties near Voisey's Bay in Labrador. In addition to its project portfolio, Buchans holds equity interests in base metal and silver projects in Mexico through its 24.5% shareholding in Xtierra Inc. (TSXV: 'XAG'), and in base metal exploration in Ireland through its 14.4% shareholding in Minco Exploration plc
Collaboration with Boliden
In 2021, Buchans entered into a Collaboration Agreement on its Buchans Project with Boliden Mineral AB a wholly-owned subsidiary of Boliden AB (publ). Under this agreement Boliden has been granted rights to evaluate the project for possible future investment and participation and retains exclusivity on the project. During 2021 Boliden invested $635,000 in cash and services towards evaluation programs undertaken on the Buchans project and contributed a further $476,000 to date in 2022. The evaluation period was originally meant to end at the end of 2021 but has been extended by subsequent amendments as Boliden requested additional time to negotiate terms for option and joint ventures agreements, as well as complete its due diligence investigations. The Company anticipates concluding negotiations with Boliden during the third quarter and remains hopeful ongoing negotiations will lead to further investment and participation by Boliden.
ABOUT BUCHANS RESOURCES
Buchans Resources holds interests in zinc, lead, silver properties located in Newfoundland; gold properties in Newfoundland and in Labrador; nickel, copper, cobalt properties in Labrador, and indirectly through its shareholding in Xtierra Inc. (TSXV-XAG), in base metal and silver projects in Mexico and, through its shareholding in Minco Exploration plc, in base metal exploration licences in Ireland. The Company's Buchans project covers the historic, world-renowned, high-grade base metal mining camp with excellent potential for new discoveries, currently being evaluated by Boliden AB, Europe's leading mining and metals producer of zinc, copper, lead, and nickel. Boliden's review is being undertaken under an exclusive Collaboration Agreement in anticipation of negotiation of an Earn-in and JV Option Agreement.
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This news release contains certain forward-looking statements relating to, but not limited to, the Company's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, delays in the development of projects changes in exchange rates, fluctuations in commodity prices, inflation and other factors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Shareholders and prospective investors should be aware that these statements are subject to known and unknown risks uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.