Mr. Michael Scholz reports
PURCHASE OF ADDITIONAL INTEREST IN THE RADCLIFF GOLD PROPERTY/CLOSING OF THE 1,000,000 UNIT FLOW-THROUGH PRIVATE PLACEMENT @ $0.20 PER UNIT
CMC Metals Ltd. has negotiated and signed a purchase agreement for a
50-per-cent ownership interest in the Radcliff property, up from the
previously announced 25 per cent on May 3, 2011, with Pruett Ballarat Inc.
and the vendor of the claims. A total of 94 unpatented claims,
10 patented claims and one patented mill site claim are included in
the purchase, and negotiations have been continuing for the past four
months. Terms of the purchase include a $100,000 payment to the
propertyowner on signing, plus a further $900,000 on the closing date
of April 16, 2012. The agreement has a net smelter return royalty of 5 per cent back to the
vendor, with an option to buy out the royalty for $1-million within
one year of the closing date. The $1-million provided by the company
toward the purchase of the Radcliff property will be returned on a
first-priority basis from the net proceeds from the mine production
under the joint venture agreement with PBI. The current production
plan for the Radcliff mine is sufficient to provide over three years of
ore for the Bishop mill facilities. The company has also advanced an
additional $150,000 toward the joint venture with PBI, which funds have
been used to improve the road access to the Radcliff property and
toward certain equipment costs related to the underground workings.
The Bishop mill is a suitable facility to process the Radcliff mine
ore. Approval by the Water Board has been received for the new
tailings pond at the Bishop mill, and the amended plan of operation is
currently being reviewed for acceptance. Once the amended plan of
operations is approved, stockpiling of the Radcliff ore and work on
the new tailings pond will commence.
The Radcliff (Worldbeater) mine is located eight kilometres from the town of
Ballarat and 13 km northeast of the operating Briggs mine. The current
mine developments occur at the upper elevations (4,530 to 6,580 feet) of
the Panamint Mountain Range. Mineralization occurs within
quartz-sulphide veins, disseminated sulphides and locally massive
sulphides which were emplaced along zones of shearing and dilatency
within the argillite and amphibolite units. These units
and unconformities structurally overlie quartzofelspathic gneisses and granites of
the Worldbeater complex.
The company further wishes to announce that it has completed its
previously announced private placement (see press release dated
Dec. 8, 2011) of up to one million flow-through units at a price of 20 cents per FT unit for aggregate gross
proceeds of $200,000. Each FT unit
consists of one common share in the capital of the company which will
be designated as a flow-through share pursuant to the Income Tax Act
(Canada) and one common share purchase warrant. Each warrant entitles the holder to purchase
one flow-through common share in the capital of the company at a price of 25 cents per share for a period of one
year expiring Dec. 16, 2012. The original terms of the placement
as announced Dec. 8, 2011, were amended in that the warrant exercise price was reduced to 25 cents per share from the
originally announced price of 30 cents per share. No finder's fee was
payable pursuant to this transaction.
In compliance with NI 43-101, Don Wedman, PEng, president and chief
executive officer of the company, is the qualified person who prepared
or supervised the preparation of the technical information presented
in this news release.
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