Toronto, Ontario--(Newsfile Corp. - February 1, 2023) - Caprock Mining Corp. (CSE: CAPR) ("Caprock" or the "Company") is pleased to announce that it has entered into a binding option agreement dated January 31st, 2023 (the "Option Agreement") setting out the terms of an option to acquire a 100% interest in the Ackley Lithium-Tin-Molybdenum-REE property ("Ackley", or the "Property") located in south-eastern Newfoundland from Dean Fraser (the "Optionor"), the arms-length owner of the Property (the "Transaction").
Ackley comprises three claim blocks that collectively span an area of 4,550 hectares located less than two hours' drive from St. John's. The claim blocks overlie portions of the contact zone of a large Devonian-aged granite complex with Proterozoic metasediments and volcanics, parts of which are "greisened", or hydrothermally altered, that is similar in age and lithology to the Mount Pleasant deposit in New Brunswick and the East Kemptville deposit in Nova Scotia. Limited historical exploration work across the eastern claim block (the "Main claim block") by companies including Esso Minerals, American Zinc, Inco and others, discovered occurrences and anomalies of lithium, tin, molybdenum, tungsten and REE's.
Recent magnetometer survey work over part of the Main claim block indicates that the altered contact zone may be extensive, covering several square kilometres. Recent limited prospect sampling and historical Esso trenches across the Main claim block returned assays of up to 0.91% lithium dioxide, 5.0% molybdenum, 0.67% tin and 1-5% fluorine on surface. Newfoundland government survey maps of this region report some of the highest lake sediment values for REE's on the entire island.
President & CEO of Caprock, Vishal Gupta states, "High-grade lithium, molybdenum and tin mineralization on surface, a large prospective alteration halo spanning several square kilometres, and its location in a mining-friendly jurisdiction, are some of the characteristics that attracted us to Ackley. The opportunity to add this lithium-focused Property to our existing portfolio of precious metals properties in Ontario provides Caprock's shareholders an incredible optionality in today's turbulent commodity markets."
Terms of the Transaction
Pursuant to the Option Agreement, Caprock has an option to acquire a 100% interest in the Property by incurring the following obligations over the course of three years (which may be accelerated at Caprock's option) from the date of the signing of the Option Agreement:
- Issuance of 5,200,000 common shares of the Company (1,300,000 immediately and 1,300,000 on each of the 12, 24 and 36 month anniversaries of execution of the Option Agreement);
- Payment of $125,000 in cash ($20,000 immediately, $25,000 on the 12 month anniversary of execution of the Option Agreement, $30,000 on the 24 month anniversary of execution of the Option Agreement and $50,000 on the 36 month anniversary of execution of the Option Agreement); and
- Incurring qualified expenditures on the Property totaling $750,000 ($150,000 within the first 12 months of execution of the Option Agreement, an additional $250,000 within 24 months of execution of the Option Agreement and an additional $350,000 within 36 months of execution of the Option Agreement).
Upon the completion of the above obligations by Caprock, the Optionor will retain a 2% NSR on the Property, of which half would be buyable by Caprock for $1,000,000 at any time.
Figure 1
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About Caprock Mining Corp.
Caprock Mining Corp. is a Canadian mineral exploration company focused on opportunities in the historical Beardmore-Geraldton Gold Belt ("BGB") of Ontario. The company's 100% interest in six gold exploration properties gives it a substantial landholding in the BGB - a belt that has produced over four million ounces of gold historically, and contains the world-class Greenstone gold project (formerly known as the Hardrock gold project) which is being brought to production by a joint venture partnership between Equinox Gold and Orion Mine Finance. With an experienced management team that has a strong exploration pedigree, Caprock is poised to advance its portfolio of gold exploration properties in the BGB to generate incremental shareholder value.
The scientific and technical information disclosed in this release has been reviewed and approved by Mr. Vishal Gupta, the Company's President & CEO. Mr. Gupta is a P.Geo. registered with the Professional Geoscientists of Ontario (PGO), and a. "qualified person" as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects.
For More Information
Please contact:
Vishal Gupta
President & CEO
E-Mail: vgupta@caprockmining.com
Cautionary Statement Regarding Forward-Looking Statements
All statements in this press release about anticipated future events or results constitute forward-looking statements including, but not limited to, statements with respect to: those that address the anticipated closing of the Option Agreement and necessary approvals for the closing of the Option Agreement. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. All statements, other than statements of historical fact, included herein, are forward-looking statements, and include: the future exercise of the option by Caprock, including receipt of the consideration payable and the occurrence of the expenditures by Caprock required for it to exercise the option. Although Caprock believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Caprock can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in Caprock's periodic filings with Canadian securities regulators. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Important factors that could cause actual results to differ materially from Caprock's expectations include risks associated with the business of Caprock; risks related to reliance on technical information provided by Caprock; risks related to exploration and potential development of the Company's mineral properties; business and economic conditions in the mining industry generally; fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and First Nation groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risk factors as detailed from time to time and additional risks identified in Caprock's filings with Canadian securities regulators on SEDAR in Canada (available at www.sedar.com). Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Caprock does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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