Dr. Jaap Verbaas reports
CAVU MINING SIGNS DEFINITIVE AGREEMENT TO ACQUIRE 100% INTEREST IN THE STAR COPPER GOLD PORPHYRY PROJECT IN BC
Cavu Mining Corp. has signed a definitive agreement to option a 51-per-cent interest in the Star copper-gold porphyry project in Northern British Columbia from Prosper Gold Corp. The company purchased 49 per cent of the Star project on April 20, 2022, and now has a path to own 100 per cent of the asset. The Star project is located in the traditional territory of the Tahltan and Taku River Tlingit First Nations.
- The Star project is a copper-gold porphyry in the Golden Triangle.
- Cavu owns a 49-per-cent interest in the Star project and has signed a definitive option agreement to earn the remaining 51-per-cent interest in the Star project.
- Over 13,000 metres of modern drilling has been completed within the 6,829-hectare claim block.
- The Star project is fully permitted for advanced exploration with 200 drill sites until 2026.
- A data verification program will be planned in the near future.
- Cavu will make payments of 1.25 million shares and $1,155,000 over two years.
"The signing of the definitive agreement gives us a path towards full ownership of the Star project and allows us to start working towards a comprehensive exploration program," stated Dr. Jaap Verbaas, chief executive officer of Cavu. "This fully permitted and drill-ready porphyry project is a great addition to our portfolio and we are looking forward to starting exploration. The company has been taking big strides this year with a 5,000-metre drill program starting on the Hopper and the acquisition of the Star project in the Golden Triangle of B.C."
The Star copper-gold porphyry project
The Star project is a copper-gold porphyry of 6,829 ha. The project is located about 50 kilometres of the community of Telegraph Creek. Regionally, the property is within the Stikine Arch, an important geological region that hosts a number of large porphyry copper-gold projects (such as the Red Chris and Galore Creek deposits, 135 km southeast and 105 km southwest of the property, respectively).
The main Star target is mineralized to a depth of 700 m below surface and contains a preserved supergene-enriched zone (notable drill results are indicated in the "Selected intercepts of the Star target" table). There are also four additional targets on the Star project that are known to host copper mineralization but are not drilled to the same extent. Cavu is compiling and analyzing all existing data in order to plan a comprehensive exploration program.
Access to the Star project is through a fixed-wing airstrip on site and a network of trails and drill-roads. Camp facilities are on-site and were previously used in 2014. The project is permitted for drilling until March 31, 2026.
Additional information on the Star project can be found in the updated Cavu presentation.
A multiyear, area-based (MYAB) exploration permit for the Star project was granted in 2020 and expires in 2026. The exploration permit allows for 200 drill sites and further trail building to service those drill sites. Upon the completion of due diligence, the exploration permit will be transferred to Cavu from Prosper Gold.
Data verification program
The company intends to do complete a data verification program to:
- Photograph and index historical drill core;
- Resample and assay specific drill-core intersects;
- Assess whether any infrastructure on site requires specific upgrades.
On-site infrastructure includes an on-claim airstrip and a camp built to host an exploration crew of 20 people.
Terms of the acquisition
The 51-per-cent interest in the Star project is held by Prosper Gold, who is also the operator of the project. Cavu and Prosper have signed a definitive option agreement whereby Cavu may acquire the 51-per-cent interest by: (i) issuing 1.25 million common shares to Prosper within seven days after the definitive agreement being signed; and (ii) cash payments to Prosper in the amounts of:
- $100,000 within seven days of the effective date;
- $285,000 by July 1, 2022;
- $385,000 within one year of the effective date;
- $385,000 within two years of the effective date.
Should Cavu not exercise the 51-per-cent option in full, Prosper shall have a 30-day period from the termination date to purchase Cavu's 49-per-cent interest in the Star project for a lump sum cash payment of $500,000.
The Star project is subject to a royalty with certain legacy owners representing 2 per cent of net smelter returns upon commercial production. One-half of the royalty may be repurchased from the royalty holders for a price of $2-million.
Cavu closed the 49-per-cent acquisition by way of an asset purchase agreement with Deloitte Restructuring Inc. (in its capacity as the court appointed receiver of Otso Gold Corp.), following receipt of an approval and vesting order from the Supreme Court of British Columbia, by payment of a lump sum cash amount of $220,000.
None of the results in this news release have been independently verified by the company. As such, the results should be interpreted to be historical in nature and investors are cautioned not to rely unduly on such results.
Roger Hulstein, PGeo, is the qualified person for the company as defined in the National Instrument 43-101 and has reviewed the technical information presented within this news release.
About Cavu Mining Corp.
Cavu Mining is a mining company engaged in the acquisition, exploration and development of mineral projects containing metals used in green technologies and the renewable energy sector. The company is currently focused on the exploration of its Hopper copper-gold porphyry project in Yukon and recently acquired Star copper-gold porphyry project in B.C.
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