VANCOUVER, Sept. 3, 2015 /CNW/ - Amarc Resources Ltd.
("Amarc" or the "Company") (TSXV: AHR; OTCBB: AXREF) is pleased to
announce it has entered into an agreement (the "Agreement") with
Thompson Creek Metals Company Inc. ("Thompson Creek") (NYSE:TC;
TSX:TCM) pursuant to which Thompson Creek may acquire, through a
staged investment process within the next five years, a 30%
ownership interest in the IKE copper-molybdenum-silver porphyry
deposit and the surrounding district, which hosts a number of
prospective copper±molybdenum±gold deposit targets yet to be
drilled (the "IKE Project" or the "Project"). Amarc management
believes the IKE district has the potential to become an important
mining camp. Under the terms of the Agreement, Thompson Creek has
an option, after acquiring its 30% interest, to acquire an
additional 20% interest in the IKE Project, subject to certain
conditions, including the completion of a Feasibility Study.
Ron Thiessen, CEO of Amarc: "We
are pleased to welcome Thompson Creek, a company with a solid
reputation in British Columbia and
throughout North America as a
stable, experienced and responsible mine operator and metals
producer, to a project we believe will emerge as one of this
country's most important new mineral developments. Amarc and
Thompson Creek hold a common view of the potential of the IKE
property, and a shared commitment to efficiently advance it in a
manner that balances technical, environmental and social
considerations."
Robert Dickinson, Chairman of
Amarc: "HDI companies have a long history of discovering and
developing copper porphyry deposits in BC that have gone on to
generate decades of wealth and opportunity for British Columbians.
Thompson Creek's Mount Milligan mine northwest of Prince George, for example, is a copper-gold
porphyry that our group drilled and discovered years ago. We're
delighted that today, under Thompson Creek's committed leadership,
it is generating high-value jobs and economic benefits for British
Columbians, and we are excited to be joining forces with Thompson
Creek at IKE, a property we believe has the potential to become a
company maker in the years ahead."
Jacques Perron, President &
CEO of Thompson Creek: "We see the potential in the IKE Project and
are pleased to have the opportunity to team with Amarc to advance
the Project's development in the longer term. We believe this
Project has the potential to become highly significant and is an
excellent opportunity for Thompson Creek to increase its presence
in BC and to potentially develop another large-scale copper
operation. We believe that the phased structure of the
earn-in and the flexibility with which Thompson Creek may
contribute capital to the Project will allow us to participate in
an exciting project in a measured and thoughtful way as we navigate
the current metals market, as well as invest in future strategic
growth. Through Amarc we look forward to working with the HDI
team, which has an excellent track record of discovering and
developing projects in BC."
The Agreement
Under the terms of the Agreement, Thompson Creek can earn an
initial 30% interest in the Project under a Stage 1 Option by
funding $15 million of expenditures
on the property before December 31,
2019, of which $3 million is
committed for 2015. For each $5
million of project expenditures funded, Thompson Creek will
incrementally earn a 10% ownership interest. Stage 1 Option
expenditures can be accelerated by Thompson Creek at its
discretion. Amarc will remain as operator during the Stage 1
earn-in period.
In the event that its Stage 1 Option is fully exercised,
Thompson Creek will have a one-time right under a Stage 2 Option to
elect to earn an additional 20% ownership interest in the Project
(for a total 50% ownership interest). To fulfill its obligations
under the Stage 2 Option, Thompson Creek must commit within 120
days after exercising its Stage 1 Option in full, to fund and
complete a Feasibility Study for the IKE Project that could serve
as the basis for a final decision by a financial institution to
finance development of a mining project. This Feasibility Study
must be completed within a two-year period, which can be extended
to three years under certain circumstances. In addition, under the
terms of the Stage 2 Option, Thompson Creek is required to meet all
other expenditures necessary to maintain and advance the Project.
Operatorship will pass to Thompson Creek upon initiation of the
Stage 2 Option period.
The Agreement contemplates that the parties will form a joint
venture to develop the IKE Project once the earn-in period is
completed, provided that Thompson Creek earns a minimum 10%
interest. Amarc will remain operator of the Project in the instance
that Thompson Creek does not earn a 50% interest. Thompson Creek
will continue as operator until it ceases sole funding after its
acquisition of the initial 30% interest, and in the event that it
earns a 50% interest following the Stage 2 Option period.
During both the Stage 1 and Stage 2 Option periods, Amarc will
retain a co-expenditure right whereby it can solely fund additional
expenditures on the Project. Thompson Creek may elect to pay its
share of these additional expenditures upon completion of its Stage
1 Option and Stage 2 Option periods, failing which its ownership
interest will be reduced. The maximum amount that Amarc can recover
from Thompson Creek on completion of the Stage 1 Option period is
capped at $6 million. The maximum
amount that Amarc can recover from Thompson Creek on completion of
the Stage 2 Option period is capped at $10
million.
The Agreement is subject to a number of conditions precedent,
including Amarc's receipt of all necessary third party and
government consents and approvals. If the conditions are not
satisfied by Amarc on or before October 25,
2015, committed expenditures in the amount of $3 million must be repaid to Thompson Creek
together with interest thereon at a rate of prime plus 5% within
two years from the date of the Agreement.
The IKE Project
Amarc has made a significant copper-molybdenum-silver porphyry
discovery at its IKE project, located in south-central British Columbia ("BC") in the heartland of
the Province's producing porphyry copper mines (see Amarc news
release November 24, 2014). Together
with the surrounding district of additional prospective
copper±molybdenum±gold porphyry targets yet to be drilled, Amarc
management believes the IKE Project has the potential to possess
the grades and resource capabilities to develop into an important
mining camp.
Amarc currently holds a permit issued by the BC government for a
50-hole drill program at IKE. Crews are to be mobilized to the
field for the 2015 exploration season in the near-term. Drill
activities will focus on the IKE porphyry system to determine the
known deposit's full resource potential as defined by Amarc's 2014
drill results and post-drilling geological, geochemical and
geophysical surveys.
Like many major porphyry deposits, IKE formed in a very active,
multi-stage hydrothermal system that was extensive and robust. The
footprint of the hydrothermal system at IKE is over six square
kilometres. The nine discovery holes (5,400 metres) drilled by
Amarc in 2014 intersected long intervals of continuous chalcopyrite
and molybdenite mineralization from surface and over a broad area,
measuring 1,200 metres east-west by 600 metres north-south and to
depths of approximately 500 metres. Mineralization at IKE
remains open in all lateral directions and to depth.
At IKE, chalcopyrite and molybdenite mineralization appears to
have been precipitated during at least three stages of hydrothermal
activity. The mineralization occurs as fine to relatively coarse,
mostly discrete grains, mainly as disseminations and less commonly
in fractures and veins. Multi-element analyses returned
consistently and unusually low concentrations of metallurgically or
environmentally deleterious elements. These characteristics, and
the generally low concentrations of pyrite at IKE, suggest
excellent potential to produce clean, good-grade copper and
molybdenum concentrates by standard flotation processing.
Amarc is committed to working collaboratively with governments
and stakeholders to achieve the responsible development of its
projects, while contributing to the sustainable development of the
communities in which it works. Work programs are carefully planned
to achieve high levels of environmental and social performance,
including providing opportunities for employment, contracting and
training for local people if desired. The Company also continues to
build positive relationships with regulators, supporting
government's consultation duties to assist with timely and fair
regulatory decision-making.
About Thompson Creeks Metals Company Inc.
Thompson Creek is a North American mining company. The Company's
principal operating property is its 100%-owned Mount Milligan mine,
an open-pit copper and gold mine and concentrator in British Columbia. The Company's molybdenum
assets consist of the 100%-owned Thompson Creek Mine, an open-pit
molybdenum mine and concentrator in Idaho, its 75% joint venture interest in the
Endako Mine, an open-pit molybdenum mine, concentrator and roaster
in British Columbia, and its
Langeloth Metallurgical Facility in Pennsylvania. The Company's development
project is the Berg property, a copper, molybdenum, and silver
exploration property located in British
Columbia. The Company's principal executive office is
located in Denver, Colorado. More
information is available at www.thompsoncreekmetals.com.
About Amarc Resources Ltd.
Amarc is a British
Columbia-based mineral exploration and development company
with an experienced and successful management team that is focused
on advancing its IKE project, a major porphyry copper discovery in
the heartland of BC's copper mining industry with proximity to
mining infrastructure, power, rail and highways.
Amarc is associated with Hunter Dickinson Inc. (HDI) a
diversified, global mining company with a 25+-year history of
porphyry discovery and development success. Previous and current
HDI porphyry projects include some of BC's and the world's most
important mineral resources, such as Mount Milligan, Kemess South,
Kemess North, Gibraltar,
Prosperity, Xietongmen, Newtongmen, Florence, Sisson, Maggie and
Pebble. From its head office in Vancouver, Canada, HDI applies its unique
strengths and capabilities to acquire, develop, operate and
monetize mineral properties to provide superior returns to
shareholders.
Mark Rebagliati, P. Eng., a
Qualified Person as defined under National Instrument 43-101, has
reviewed and approved the technical content of this release.
ON BEHALF OF THE BOARD
Ronald W. Thiessen
Chief Executive Officer
Neither the TSX Venture Exchange nor any other regulatory
authority accepts responsibility for the adequacy or accuracy of
this release.
Forward Looking and other Cautionary Information
This press release includes certain statements that may be
deemed "forward-looking statements". All such statements, other
than statements of historical facts that address exploration
drilling, exploitation activities and other related events or
developments are forward-looking statements. Although the Company
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Assumptions used by the Company to
develop forward-looking statements include the following: Amarc's
projects will obtain all required environmental and other permits
and all land use and other licenses, studies and exploration of
Amarc's projects will continue to be positive, and no geological or
technical problems will occur. Factors that could cause actual
results to differ materially from those in forward-looking
statements include market prices, potential environmental issues or
liabilities associated with exploration, development and mining
activities, exploitation and exploration successes, continuity of
mineralization, uncertainties related to the ability to obtain
necessary permits, licenses and tenure and delays due to third
party opposition, changes in and the effect of government policies
regarding mining and natural resource exploration and exploitation,
the exploration and development of properties located within
Aboriginal groups asserted territories may affect or be perceived
to affect asserted aboriginal rights and title, which may cause
permitting delays or opposition by Aboriginal groups, continued
availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. For more information on Amarc
Resources Ltd., investors should review the Company's annual Form
20-F filing with the United States Securities and Exchange
Commission at www.sec.gov and its home jurisdiction filings that
are available at www.sedar.com.
SOURCE Amarc Resources Ltd.