Mr. Stephen Stewart reports
OREFINDERS UPDATES ON POWER ORE INC., ITS COBALT AND BATTERY METALS SPIN-OFF; ANNOUNCES POWER ORE SEED FINANCING
Orefinders Resources Inc. has provided an updated on its spinoff company, Power Ore Inc., which will acquire Orefinders' past-producing silver-cobalt Mann mines and MacMurchy properties vis a vis a court approved plan of arrangement (POA). Additionally, Power Ore is announcing pricing for its seed round financing, which is available to accredited investors. Total gross proceeds for Power Ore's seed round will be up to $1-million.
"We see this transaction as a win-win for Orefinders' balance sheet as this is akin to a non-dilutive financing. Additionally, all Orefinders shareholders who will be receiving distributed shares in Power Ore, and the new shareholders coming into Power Ore will have direct exposure to series of acquisitions in Canada's cobalt and battery metal sector. Our shareholders, in both Orefinders and Power Ore, can expect continued creative and accretive transactions which deliver value on a per-share basis," said Stephen Stewart, chief executive officer of Orefinders.
Power Ore update and timing
Subject to approval of the TSX Venture Exchange, Power Ore is targeting to list on the exchange in May, 2018, through a court-approved POA, after receiving approval from Orefinders shareholders. As a part of its listing process, Power Ore is completing its independent National Instrument 43-101 report on the Mann mines, an independent CIM (Canadian Institute of Mining, Metallurgy and Petroleum) valuation report and fairness opinion, and an audit of its financial statements. Remaining milestones include the completion of its seed round financing and Orefinders shareholder approval for the POA at its annual general and special meeting, which is currently scheduled for May 4, 2018. Pending Orefinders shareholder approval, Power Ore expects to achieve its listing in the days thereafter.
Seed round financing for Power Ore
Power Ore is announcing the commencement of its seed round non-brokered financing and is raising no more than $1-million for general working capital and work program purposes. The target capital raise amount is designed to meet the minimum capital requirements as per the TSX-V regulations. There are no founder shares or free shares being issued in Power Ore, and management is acting as the lead order in this financing.
Power Ore's seed round pricing is as follows:
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Hard-dollar units are five cents each and include a common share plus a half warrant exercisable at eight cents for two years from closing.
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Flow-through units are six cents each and include common share plus a half warrant exercisable at 10 cents for two years from closing.
Subscription agreements for Power Ore's financing are available upon request. Please inquire by e-mail at sstewart@orefinders.ca. The financing is only available to accredited investors.
Additional information and a corporate presentation about Power Ore are available on-line.
Power Ore is positioning itself to be the owner of a diversified portfolio of battery metal assets in Canada and is focused on two things:
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Assets whose metals are used in the manufacture of batteries for electrical or autonomous vehicles and for mass energy storage on the grid or in homes -- specifically, cobalt and nickel;
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Advanced-stage assets in Canada -- where discoveries have been made, mineralization is understood and infrastructure is in place.
Power Ore's first assets will be 100-per-cent ownership of the Mann silver-cobalt mine and the MacMurchy nickel property, both of which are in the Cobalt-Gowganda district of Ontario.
About the Mann silver and cobalt mine
The Mann mines are silver and cobalt assets located in Milner township, Ontario, within the Cobalt-Gowganda region. The property hosts nine historical shafts and a ramp driven to the 210-foot level. They were in production at various times in the 20th century and have recorded historical production prior to 1987 of over 330,000 ounces of silver. The Mann mines consist of 867 hectares, west of Cobalt, Ont., in the renowned Temiskaming silver area, from which 570 million ounces of silver and over 28 million pounds of cobalt have been produced. There are excellent road access and local infrastructure available.
Diamond drilling from 2011 and 2012 confirmed high-grade silver and cobalt mineralization values, which are listed in an attached table.
About the MacMurchy nickel property
The MacMurchy property is located approximately 25 kilometres west of the Mann property and is underlain by Archean volcanic and sedimentary rocks. Drilling by Creso on a gold-rich quartz vein showing in 2008 returned anomalous gold associated with quartz veins, which included a one-metre interval that assayed 7.43 per cent nickel and 2.1 grams per tonne platinum plus palladium plus gold (see MNDM AFRI 20005253).
MANN MINE DRILL RESULTS BY CRESO (2011 TO 2012)
-- HIGH-GRADE SILVER AND COBALT INTERSECTIONS
(from MNDM AFRI 20011567)
Hole No. From To Length Cobalt
(m) (m) (m) grade
(%)
MN11-01 111.5 117.3 5.8 0.34
Including 112.9 114.3 1.4 1.12
MN11-03 11 11.4 0.4 0.20
Hole No. From To Length Silver
(m) (m) (m) grade
(g/t)
MN11-01 29 58.3 29.3 131
Including 37 38 1 2,320
Including 52.2 52.7 0.5 1,210
MN11-03 21.3 50 28.8 181
Including 35.9 41 5.2 978.5
Including 39.8 40.5 0.7 5,130
MN11-02 27.8 34.3 6.5 17.9
And 95 144.5 49.5 14.3
Including 47.8 48.4 0.6 141
MN12-06 16.6 38.3 21.7 58.7
Including 23.3 24.7 1.4 695
Qualified person statement
The technical information contained in this news release has been reviewed and approved by Charles Beaudry, PGeo, director and vice-president, exploration, for Orefinders, who is a qualified person as defined in NI 43-101, Standards of Disclosure for Mineral Projects.
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