CSE – MICH
VANCOUVER, BC, Nov. 14, 2022 /CNW/ - Mich Resources Ltd. (CSE: MICH) (the "Company") is pleased to announce that it has entered a binding Letter of Intent (the "LOI") with Pavey Ark Minerals Inc. ("Pavey") whereby the Company has an option to purchase a 100% interest in Pavey's Chrome-Puddy Property ("Chrome-Puddy", the "Property", or the "Acquisition Target").
Acquisition Target Summary
Chrome-Puddy is located in the Thunder Bay Mining Division, of Ontario, Canada approximately 85 kilometers (km) north of Lac des Iles Palladium Mine, measures 1,450 hectares (ha) in size, and covers over 90% of the 6.5 km strike length of the Chrome Puddy Ultramafic Intrusion within the region.
The Property is comprised of historically identified Nickel (Ni), Copper (Cu), Cobalt (Co) and Platinum Group Metals (PGM) sulphide targets that can be rapidly advanced to drill stage with drill permits pending. The Property also has a bulk tonnage historical resource (non 43-101 compliant) with Ni-Co-Fe oxide mineralization, and encompasses the past-producing high-grade Chrome Lake Mine, the only chromium producer in Ontario to date.
David Suda, President and CEO commented "The Company is very excited to have an LOI in place for a Property with critical and EV metal potential in a mining friendly district. The Chrome-Puddy intrusion has not seen systematic exploration since the 1960's and much of the historical work did not assay for the full suite of potential commodities. We feel this untested metal prospectivity coupled with the shallow nature of the historical drilling and untested electromagnetic anomalies puts MICH in a desirable position for new discoveries."
Historical Exploration Highlights
- Grab samples analyzed by the Thunder Bay Resident Geologist office report values including 5.02% Cu, 2.1% Ni, 0.42 g/t gold (Au), 1.5 g/t Platinum (Pt) and 3.75 g/t Palladium (Pd);
- Grab sample assays of serpentinite with magnetite veins by Pavey Ark included 1.39 % Ni, 0.45g/t Pt+Pd, 0.65 g/t Au;
- Multiple untested airborne Dighem, ground MaxMinEM and VLF-EM conductors remaining;
- Ni-rich magnetite zone with historical drill intersections included 48 m assaying 0.36% Ni, 0.17% Cu, 9.1% recoverable iron (Fe);
- Historical resource of 30 M tons grading 0.27% Ni, 7.2% recoverable Fe, and 0.02 Co to a depth of 400 ft (Commerce Nickel Mines Ltd. Annual Report 1966);
This historical resource was prepared by Commerce Nickel Mines Ltd. in 1966 and is not considered by the Company to be a "current resource". Insufficient work has been done by a Qualified Person to verify the estimate and the estimate should not be relied upon, as at this time the resources are not NI 43-101 compliant and further drilling and analysis by a Qualified Person would be required to upgrade or verify this historical resource as a current mineral resource. Pavey Ark Minerals Inc. has compiled the information from historical sources that are believed to be reliable, however, the Company makes no warranty as to the accuracy and reliability of the estimate.
Chrome-Puddy currently has an approved Ontario Junior Exploration Program (OJEP) grant in the amount of $63,800 for 2022 exploration activities.
Following a successful closing of the proposed acquisition, the Company anticipates moving the Property forward through systematic exploration with the goal of defining a bulk tonnage mineralized body.
Additional Pavey Property
Also included in the terms of the LOI, is the transfer of a 100% interest in Pavey's Danby Triangle Property ("Danby", or the "Additional Property"). Danby is a 1,504 ha Magmatic Sulphide Ni-Cu-PGM target located within the Thunder Bay Mining District approximately 122 km north of the city of Thunder Bay, and within 40km of the Lac des Iles Palladium Mine. The Additional Property is comprised of seven contiguous staked claims, covering a total of 94 claim units. Historical drilling at the Additional Property has intersected anomalous Chromium (Cr), Ni, Cu, Pt+Pd+Au in gabbro/metapyroxenite with values up to 511 ppm Cr, 428 ppm Ni, 405 ppm Cu and 165 ppb Pt+Pd+Au.
Rob L'Heureux, M.Sc., P.Geol., of APEX Geoscience Ltd. has reviewed the news release and assumes responsibility for scientific and technical disclosure contained herein.
Terms of the Acquisition
As consideration for a 100% interest in the Property, as well as the Additional Property, the LOI contemplates the following cash payments, share issuances and agreed upon terms to be honoured by MICH:
- a one-time cash payment to Pavey of $200,000;
- the issuance of 5,000,000 MICH shares to Pavey;
- a 1.5% NSR afforded to Pavey;
- $150,000 to Pavey on each of the 2nd ,3rd and 4th anniversaries of the closing of the Transaction;
- share issuances valued at $250,000 on each of the 2nd, 3rd and 4th anniversaries of the closing of the Transaction.
- work program funding to advance the project as follows:
- Year 1 of $550,000 minimum, and
- Years 2 and 3 of $700,00 per year minimum.
Completion of the acquisition of Chrome-Puddy remains subject to several conditions, including the satisfactory completion of due diligence, receipt of any regulatory approvals, the negotiation of definitive documentation, including an option agreement and a share purchase agreement, among other documents, and the completion of a minimum $1 million in financing concurrent with the closing of the Transaction. In addition, completion of the acquisition of Chrome-Puddy will be considered a fundamental change which will require CSE and shareholder approval.
Trading in the shares of the Company has been halted since the Company announced its intention to acquire the Pecoy copper project (the "Pecoy Acquisition") on July 31, 2021 as completion of the Pecoy Acquisition would have been considered a fundamental change under CSE Policy. On November 1, 2022 the Company announced that it had terminated agreements with respect to the Pecoy Acquisition and will no longer pursue that acquistion. Trading will remain halted until the acquisition of Chrome-Puddy closes, the required approvals noted above are obtained, and the resulting issuer approved for listing. There is no guarantee that the acquisition of Chrome-Puddy will close or that the listing of the resulting issuer will be approved.
About the Company
The Company is a British Columbia public company with a registered office at 25th Floor, 700 West Georgia Street, Vancouver, BC, V7Y 1C3. The Company's common shares are listed on the Canadian Securities Exchange (CSE) under the trading symbol "MICH" and reporting in British Columbia and Ontario. The Company is principally engaged in the acquisition and exploration of mineral properties.
On behalf of Mich Resources Ltd.
President and Chief Executive Officer
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to: the proposed acquisition of the Property and Additional Property, and concurrent $1 million financing (collectively, the "Transaction"); the satisfaction of the conditions and closing of the Transaction (including Exchange and shareholder approval); general business and economic conditions.
Although management of the Company believe that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These risk factors include, but are not limited to: the Transaction may not close on the terms set forth herein, or at all; risks relating to the availability of financing; risks relating to the receipt of all requisite approvals for the Transaction, including the approval of the Exchange and shareholders; risks associated with the business of the Company; business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; changes in interest and currency exchange rates; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); political risk and social unrest; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting mining concessions); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays in the supply of equipment and services; and other risk factors as detailed from time to time.
The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
OJEP is an initiative of the Ontario government established to attract investment in early exploration, expand the pipeline of mineral development projects, including critical minerals, and lead to more mines and jobs in the province of Ontario.
SOURCE Mich Resources Ltd.
View original content: http://www.newswire.ca/en/releases/archive/November2022/14/c8955.html