00:32:31 EDT Tue 19 Mar 2024
Enter Symbol
or Name
USA
CA



Teras Resources Inc
Symbol TRA
Shares Issued 174,106,124
Close 2018-04-24 C$ 0.09
Market Cap C$ 15,669,551
Recent Sedar Documents

Teras Resources to acquire Clipper mine in Nevada

2018-04-24 09:55 ET - News Release

Mr. Peter Leger reports

TERAS TAKES LEAP FORWARD ADDING WORLD CLASS MANAGEMENT EXPERTISE AND HIGH PROFILE NEVADA PROJECT WITH MERGER

Teras Resources Inc. has executed a binding letter of intent to purchase a private Nevada-based company and combine the management teams. The transaction is expected to be completed within 30 days subject to TSX Venture Exchange approval. The new highly specialized management team members' expertise is directly related to building Cahuilla into a world-class project.

Teras will issue 3,565,000 shares of its common stock to the shareholders of the Nevada company (referred to as NVM) in exchange for 100 per cent of the shares of NVM. Teras will own 100 per cent of NVM which controls a high-profile project in Nevada known as the Clipper mine. The management team of NVM will join Teras and be appointed to the appropriate management and/or board positions once the merger is finalized. Teras will issue options to the new team members as additional incentive to build Teras shareholder value in the near future.

Descriptions of the new members of the Teras management team follow.

Steven D. Craig has over 44 years experience as an economic geologist specializing in mineral exploration and development in all types of metal deposits. He has held several executive-level positions in exploration, development and mining companies including Kennecott Exploration/Rio Tinto, Romarco, Gryphon Gold, Golden Phoenix Minerals and El Tigre Silver. He has worked in the United States and several foreign countries including Mexico, Honduras, Peru, Brazil and Papua New Guinea. Most of Mr. Craig's work has been in the Western United States and Nevada, where he has either directed or been a participant in numerous gold deposit discoveries and mine expansions. He has gained extensive experience in mine permitting, compliance, National Instrument 43-101 resource modelling and related technical report requirements. Mr. Craig has occupied leadership positions ranging from mid- to executive management within various companies. He is a certified professional geologist and with an MS in economic geology.

Lawrence J. O'Connor has worked for 35 years in the natural resource business and is highly experienced in exploration, development and mine operations. Mr. O'Connor was vice-president of operations for Western Goldfields Inc., tasked with reinitiating mine operations at the Mesquite mine in Southern California. He also held the positions of chief executive officer and director of Sonoran Gold Ltd., and president of TerraBor Inc. and Nevada Colca Gold Inc. He was a key operational participant in the start-up of the Bema Gold and Eldorado Gold corporations. Mr. O'Connor has diverse operational experience in open-pit and underground mining including exploration, ore control, mine engineering, process management, reclamation closure and operations general management. He holds a BSc geology, is a qualified person in accordance with the Canadian National Instrument 43-101.

Thomas K. (Toby) Mancuso is a well-respected mine development geologist with more than 40 years of experience in exploration, operations and management of various mining companies. Mr. Mancuso previously held the position of president and CEO of Western Goldfields Inc. (now New Gold Inc.) and is credited with purchasing the operating Mesquite mine in Southern California from Newmont. Mr. Mancuso was also senior geologist for Freeport Gold Company and chief geologist for Kennecott Corp., where he specialized in advancing projects from exploration to production. At Kennecott, he began managing the Cahuilla project in 1993 and has been involved with the property to date. Mr. Mancuso is presently managing director for NexGen Mining Inc. and operates his own company, Mancuso Resource Development Services LLC. He received his MS geology at the University of Idaho School of Mines and BSc geology from Bowling Green State University.

The Utah Clipper gold-silver-base metal project is located in Lander county, Nevada, in one of the most highly prospective precious metal regions in Nevada and the world. The state of Nevada has played host to more than 150 million ounces of existing gold resources and historic production, and the project is situated on the highly prolific Battle Mountain-Eureka mineralizing trend adjacent to Barrick's Pipeline gold mine. The project exhibits exceptional exploration potential for both precious and base metals within a large land position comprising both patented and unpatented claims.

Multiple targets have been identified on the Clipper claims as summarized below:

  • High-grade shallow lead-silver system;
  • Historical direct shipping ore assayed 114.6 ounces per ton (3,925 grams) silver and 40.4 per cent lead;
  • High-grade deeper Carlin-type gold system confirmed by drilling that intersected anomalous gold within classic Carlin-type alteration;
  • Copper-zinc system with samples assaying up to 12.9 oz/ton (441 grams) silver, 2.2 per cent copper and 1.4 per cent zinc that were intersected in historic drilling.

A map illustrating the location of the Clipper project, Battle Mountain-Eureka mineralizing trend and surrounding gold mines is available on-line.

Peter Leger, president and chief executive officer of Teras Resources, commented: "We are very excited regarding this significant move forward for Teras. We are not only adding value by the acquisition of a high-profile project within the most prolific precious metal mining region in the United States, but also our new, highly experienced management team can now advance Cahuilla as well as our other projects to a whole new level in a very timely manner. In addition, we will have the internal expertise to evaluate, acquire, model and develop projects from exploration to mine production. Expanding the team to this degree will shorten the path to successfully increasing the value of Teras for our shareholders."

Steve Craig, president and chief executive officer of NVM, remarked: "I have always focused on building shareholder value by advancing assets through sound exploration principles and utilizing shareholder investments properly and prudently. Cahuilla is a familiar project to me as I managed the Kennecott group when the property was brought into the company in 1993. I have always liked Cahuilla and felt the project has excellent potential to become a world-class precious metal producer.

"Studying the project in detail over the last few months confirms to me that with the work Teras has done over the years, and the current plan being developed by our combined management, will advance Cahuilla resulting in a much larger resource base. I am excited to bring my team into a company with great projects and future as we intend to make Teras successful on multiple fronts."

Teras will grant 3.5 million options to purchase common shares of the company to directors, officers and consultants of NVM in accordance with the company's stock option plan. The options have an exercise price of nine cents per share. The expiry date of the options will be five years from the date of issuance.

Teras has determined that there are exemptions available from the various requirements of TSX Venture Policy 5.9 and Multilateral Instrument 61-101 for the issuance of the options to the directors and officers of Teras (Formal Valuation -- Issuer Not Listed on Specified Markets; Minority Approval -- Fair Market Value Not More Than 25 per cent of Market Capitalization).

Subject to the TSX Venture approval Teras has extended the terms of its 15-cent warrants set to expire on July 4, 2018, to July 4, 2019, and its 24-cent warrants set to expire on July 22, 2018, to July 22, 2019.

About Teras Resources Inc.

Teras is focused on developing its Cahuilla project located in Imperial county, California. The project encompasses an area of at least three kilometres by 1.5 km and Teras believes that the Cahuilla project has the potential to develop into a mining operation consisting of altered and mineralized sedimentary host rocks with numerous high-grade sheeted quartz veins. Teras filed an NI 43-101 technical report with an indicated resource of 1.0 million ounces of gold and 11.9 million ounces of silver on its Cahuilla project (70 million tons at an average grade of 0.015 ounce per ton gold and 0.17 ounce per ton silver with a cut-off of 0.008 ounce per ton gold) and inferred resource of 10 million tons grading 0.011 opt gold and 0.10 opt silver. Gold equivalent ounces are 1.2 million ounces in indicated class and 130,000 ounces in inferred class using a ratio of 55 ounces silver to one ounce of gold.

Dr. Dennis LaPoint, a qualified person under National Instrument 43-101 "Standards of Disclosure for Mineral Projects," and a director for Teras, is the company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the company's properties. Dr. LaPoint has reviewed and verified the mining, scientific and technical information contained in this news release. Dr. LaPoint is a registered geologist with the Society of Mining Engineers.

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