Mr. Karim Rayani reports
MONTORO RESOURCES ENTERS INTO FINANCING FACILITY UP TO $2-MILLION CAD AND APPLIES FOR DRILL PERMIT ON ITS PECORS (NI, CU, PGE) MASSIVE SULPHIDE PROJECT, ELLIOT LAKE, ONTARIO
International Montoro Resources Inc. has initiated an exploration permit application and consultation process with the Ministry of Energy, Northern Development and Mines (ENDM) and local first nations communities to continue drilling on its 1,840-hectare Pecors nickel/copper/platinum group element project near Elliot Lake, Ont. The exploration permit will allow the company to delineate the extent of nickel, copper, and PGM (platinum group metal) mineralization discovered in 2015 diamond drilling and VTEM (versatile time-domain electromagnetic) survey on the Pecors anomaly. Past exploration and geophysical interpretation by the company has outlined a significant 5.7-kilometre-long and 4.2-kilometre-wide anomaly to be tested by drilling under the new exploration permit application. Sampling of diamond drill core in 2015 (DDH P-15-23) intersected a mineralized zone near the anomaly over 12 metres averaging 0.33 gram per tonne TPM (total precious metals), 0.11 per cent copper and 0.04 per cent nickel. The textures observed near the anomaly suggest a massive sulphide deposit may be hosted in the base of the gabbro intrusion and further work on the anomaly could lead to the discovery of a new deposit type (nickel/copper/platinum group element) in the Elliot Lake mining camp only 130 kilometres from Sudbury, Ont.
The company has entered into a financing facility for up to $2-million with Alumina Partners (Ontario) Ltd., an affiliate of New York-based private equity firm Alumina Partners LLC.
The investment agreement provides the company with an at-will financing facility over a period of 24 months, during which the company can draw down, at its sole discretion, equity private placement tranches of up to $250,000. Each tranche will be composed of units, with each unit consisting of one common share of the company and one common share purchase warrant, at discounts between 15 per cent and 25 per cent of the closing price of the common shares on the day prior to International Montoro's drawdown notice to Alumina. The exercise price of the warrants will be at a 25-per-cent premium over market at the time of the issuance and the warrants will have a term of 60 months. Each draw down from the facility may be subject to approval of the TSX Venture Exchange. All securities issued pursuant to a financing under the facility will be subject to a statutory hold period that expires four months and one day from issuance.
The company intends to use the net proceeds of financings under the facility, if any, for the advancement of its portfolio of projects in both Ontario and Newfoundland, for working capital for the ramp-up and development of its operations at the Pecors nickel project at Elliott Lake, and for general corporate purposes. No finders' fees will be paid in connection with a financing under the facility.
Karim Rayani, chief executive officer, commented: "The facility provides us with the necessary capital to advance our projects should and when we need it, the company is in the process of permitting the Serpent River/Pecors project in Ontario and continues to develop our prospective gold projects in Ontario and Newfoundland. The capital will be especially useful on the Pecors project as we see nickel continue to trade higher and as the EV [electric vehicle] conversation gets louder, with more emphasis being placed on nickel-intensive battery cell chemistries. The Pecors project is a great focus point for the company as nickel once again booms particularly with Europe predicted to rival China in terms of EV market share by the end of 2020."
The Pecors project is located in the historic Elliot Lake mining camp only 130 kilometres from the Sudbury basin, which hosts a $1-trillion market evaluation based on historic production and current reserves. Utilizing data from the company's 2007 VTEM survey and a subsequent 3-D model by L.E. Reed Geophysical Consultant Inc., the company completed the two-hole, 2,317-metre drill program to probe the source of the magnetic anomaly. Following the drill program in 2015, the company contracted Geotech to complete a ZTEM deep inversion airborne survey over the entire Pecors anomaly:
- Drill hole P-15-22 (1,000 metres -- approximately one kilometre) intersected a gabbro body -- the source of the magnetic anomaly -- yielding minor sulphides that contained nickel/copper/platinum group element values near the base.
- Drill hole P-15-23 (1,317 metres) also intersected the gabbro and also indicated the company may have made contact with the conductive anomaly, returning gold, platinum, palladium, copper and nickel values from core samples. Downhole probing by Crone Geophysics of P15-23 indicated that two distinct anomalies were detected and modelled at a depth of about 580 metres to 590 metres and 975 metres to 1,021 metres downhole.
- Mira Geoscience's 3-D Analyst further outlined an approximately 5.7-kilometre-long-by-4.2-kilometre-wide-by-2.2-kilometre-deep (double the previous estimates) anomaly. It further defines two high-probability massive sulphide targets (conductive and magnetic); see Dec. 3, 2019, news release.
- In the company's March 12, 2019, news release of the 3-D Geotech inversion data, the company got the (top-down view) of the Pecors (electromagnetic) anomaly. In September, 2019, through Geoscience Analyst, the company was able to view its Pecors project in a 3-D/interactive platform (underground view).
The technical content of this news release has been reviewed and approved by Alexander Pleson, PGeo, consulting geologist and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About International Montoro Resources Inc.
International Montoro Resources, listed on the TSX Venture Exchange for over 25 years, is a Canadian-based emerging resource company. The company is systematically exploring its extensive property positions in:
- Exploits zone, Newfoundland (Victoria and Slip projects -- gold prospect);
- Atikokan, Ont. (BlackFly -- gold prospect);
- Red Lake, Ont. (Camping Lake -- gold prospect);
- Elliot Lake, Ont. (Serpent River/Pecors -- nickel/copper/platinum group element discovery and uranium/rare earth elements);
- Quebec (Duhamel -- nickel-copper-cobalt prospect and titanium, vanadium and chromium prospect);
- Prince George, B.C. (Wicheeda North -- rare earth element prospect).
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