VANCOUVER, April 11, 2018 /CNW/ - Boreal Metals Corp.
("Boreal" or the "Company") (TSXV:BMX) is pleased to
announce the execution of a definitive agreement (the
"Agreement") with EMX Royalty Corporation ("EMX")
(NYSE American: EMX, TSXV: EMX) for the acquisition of the
Mjövattnet and Njuggträskliden cobalt and nickel projects (the
"Projects") by Boreal Energy Metals Corp. ("BEMC"), a
newly created subsidiary of Boreal.
The Mjövattnet and Njuggträskliden Projects are located in the
prolific Skellefteå mining area in Northern Sweden. Mineralization is
comprised of massive sulfide bodies enriched in nickel, copper, and
cobalt, with both properties hosting historic
resources1. Platinum group elements (PGE) and gold
are also known to be enriched in the zones of mineralization, but
have not been systematically assessed, representing additional
exploration potential. The Projects have undergone only
limited modern exploration which follows Boreal's development plans
to acquire past producing projects and apply modern
techniques.
"With the acquisition of Mjövattnet and
Njuggträskliden, Boreal is executing its exploration project growth
strategy by building on an excellent foundation of base and energy
metals exploration projects in Scandinavia," stated Karl
Antonius, President and CEO. "As Sweden and the European
Union look towards the future needs for innovation and
strategic metals, our projects with historic production have the
potential to be part of the production chain. The acquisition
of projects continues to deliver significant benefits
to Boreal's shareholders and partners."
Transaction Commercial Terms
The Agreement with EMX contains the following commercial
terms:
- Subject to regulatory approval, at closing, EMX will transfer
its Mjövattnet and Njuggträskliden exploration licenses to
BEMC.
- At closing, BEMC will issue to EMX common shares of BEMC that
represents a 4% equity ownership in BEMC. This will increase
EMX's share of equity ownership to 9.9%; BEMC will have the
continuing obligation to issue additional shares of BEMC to EMX to
maintain its 9.9% interest in BEMC, at no additional cost to EMX,
until BEMC has raised CDN$3,000,000
in equity. Thereafter, EMX will have the right to participate
pro-rata in future financings at its own cost to maintain its 9.9%
interest in BEMC. The issuance of BEMC shares to EMX, as set
forth in the definitive agreement, is subject to receipt of TSX
Venture Exchange approval.
- EMX will be granted an uncapped 3% net smelter return ("NSR")
royalty on each Project, of which a 1% NSR royalty may be purchased
by BEMC on or before the fifth anniversary of the closing date in
0.5% increments for a total of USD$2,500,000 in cash and common shares of
BEMC.
- EMX will receive annual advance royalty ("AAR") payments of
USD$20,000 for each Project,
commencing on the second anniversary of the closing, with each AAR
payment increasing by USD$5,000 per
year until reaching USD$60,000 per
year.
- EMX will also be reimbursed 312,000 Swedish Krona (roughly
USD$37,000) for its acquisition costs
and previous expenditures on the Project
Overview of the Mjövattnet and Njuggträskliden
Projects
The 9,000 hectare Njuggsträskliden and 6,400 hectare Mjövattnet
licenses cover multiple drill defined zones of nickel-rich sulfide
mineralization. The Projects were recognized during a
nationwide reconnaissance exploration program for nickel conducted
between 1968 and 1984 by the Swedish Geological Survey ("SGU") and
other government entities. This led to the discovery of
nickel mineralization at Mjövattnet in 1971, followed by the
discovery of Njuggträskliden in 1974. More than 80 nickel
occurrences were identified during the reconnaissance programs,
with state funded drill programs defining multiple historic mineral
resources. Mjövattnet and Njuggträskliden contained some of
the highest average grades of nickel1 of the resources that were
defined in the 1970's and 1980's.
Over the course of 20 years, several hundred holes were drilled
on the Projects, intersecting both disseminated and massive styles
of nickel-copper-cobalt sulfide mineralization associated with a
suite of Proterozoic-aged mafic and ultramafic intrusions.
The mineralization remains open at depth, and possibly along strike
in several cases. More recent work included geophysical
surveys and limited re-sampling of historic drill core for platinum
group elements (PGE) and gold. These elements are shown to be
enriched at Njuggträskliden and Mjövattnet, but their distribution
is not well understood at present, and represents additional upside
potential.
The Projects are accessible year-round, with infrastructure
including paved roads, water and power, as well as skilled labour
in nearby municipalities.
Given the limited shallow historic drilling (i.e., generally
drilling <150 m) and untested
targets at depth and along strike, Boreal believes that there is
excellent potential for new discoveries at the Mjövattnet and
Njuggträskliden properties.
About Boreal Metals Corp.
Boreal is a mineral exploration company focused on the discovery
of Zinc, Copper, Silver, Gold, Cobalt and Nickel deposits in
exceptional, historical mining project areas spanning Sweden and Norway. The Company aims to
discover new economic mineral deposits in known mining districts
that have seen little or no modern exploration techniques.
The Company is led by an experienced management team and technical
team, with successful track records in mineral discovery, mining
development and financing.
Qualified Person
Daniel MacNeil, P.Geo, a
Qualified Person as defined by National Instrument 43-101, has read
and approved all technical and scientific information related to
the Modum project contained in this news release. Mr. MacNeil
is Vice President Exploration for Boreal Metals Corp.
On behalf of Boreal Metals Corporation
Karl Antonius, President
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain statements that may be deemed
"forward‐looking statements". Forward‐looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Although Boreal Metals Corp.
believes the expectations expressed in such forward‐looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance, are subject to risks and
uncertainties, and actual results or realities may differ
materially from those in the forward‐looking statements. Such
material risks and uncertainties include, but are not limited to,
Boreal Metals Corp.'s ability to raise sufficient capital to fund
its obligations under its property option agreements, to maintain
its mineral tenures and concessions in good standing, to explore
and develop its projects, to repay its debt and for general working
capital purposes; changes in economic conditions or financial
markets; the ability of Boreal Metals Corp. to obtain the necessary
permits and consents required to explore, drill and develop the
projects and if obtained, to obtain such permits and consents in a
timely fashion relative to Boreal Metals Corp.'s plans and business
objectives for the projects; the general ability of Boreal Metals
Corp. to drill test its projects and find mineral resources; if any
mineral resources are discovered or acquired, the Company's ability
to monetize any such mineral resources; and changes in
environmental and other laws or regulations that could have an
impact on the Company's operations. Forward‐looking statements are
based on the reasonable beliefs, estimates and opinions of Boreal
Metals Corp.'s management on the date the statements are made.
Except as required by law, Boreal Metals Corp. undertakes no
obligation to update these forward‐looking statements in the event
that management's beliefs, estimates or opinions, or other factors,
should change.
______________________________
1 As summarized in Table 1 from: A Summary of Results
of Nickel Prospecting; Swedish Geological Company ("NSG")
Report PRAP 87007, dated May 13,
1987.
SOURCE Boreal Metals