The Company Intends to Drill Stratabound Cu-Ag
Targets Proximal to the Rio 27 Mine and Epithermal Gold
Targets Beginning in 2024
VANCOUVER, BC, Nov. 20,
2023 /CNW/ - Vortex Metals Inc. (TSXV: VMS) (FSE:
DM8) (OTCQB: VMSSF) ("Vortex" or the "Company") is pleased to
announce that it has signed the definitive agreement with "Windows
Minerals SCM and SLM Rio 27 De Farellon Sánchez" (Jointly the
optionors) for an option to acquire up to an 80% Interest in the
Illapel Copper Project. This follows the letter of Intent (LOI)
that was entered into on June 27,
2023, with SCM Ventana Minerals Group, a Santiago, Chile based mining Company, as
referenced by the press release issued on June 27th
https://vortexmetals.ca/vortex-metals-to-acquire-up-to-an-80-interest-in-compelling-copper-project-in-chile/.
Illapel Copper Project Highlights:
- Favorable Geology Extends north and south from the Rio 27
Mine,
- Exploration Permits Obtained for Drilling and Exploration
- Access to Paved Roads, Power Grid and Water
- 8,000 Hectare Prospective Land Package
- Year round drilling
- Low Elevation- 1500 metres above sea level
Project Overview
The Illapel Copper Gold project is located in the Commune of
Illapel, Choapa Province of the Fourth Region of Chile and is 250 km north of Santiago. The nearest town is the mining
centre of Illapel located 25 kilometres away. Drilling may
potentially commence after all regulatory approvals, including the
approval from Toronto Venture Stock Exchange (TSXV) have been
received.
The region surrounding Illapel has seen extensive
mining activity, both past and present. Of particular note,
the El Espino copper-gold (IOCG) Project (Engineering feasibility
complete; awaiting final permits. Source: www.pucobre.cl) is
located approximately 14km to the north, and is presently planned
for development by Pucobre. Several small gold and copper
mines also operate in the immediate área.
Exploration Overview
Stratabound copper and silver mineralization at the Rio 27 mine
is associated with NNE-trending structures and felsic dykes where
they are intersected by WNW-trending structures and ocoite
(andesite porphyry) dykes. Mineralized structures are hosted within
a variable sequence of volcaniclastic rocks, and a vertical control
is also present, with certain stratigraphic units being more
favorable to manto-style mineralization. The favorable geology
extends immediately north and south from the mineralization at Rio
27, and has also been identified in outcrop at multiple locations
throughout the concession area with associated copper oxides.
In addition to the copper-silver mineralization, Vortex has
identified several epithermal veins in the western portion of
the project area that are similar geologically to gold-copper
mineralization in the Farellon Sanchez district immediately to the
west.
Given the above, once all regulatory approvals, including the
approval from the TSXV are obtained, Vortex is in the process of
designing a systematic program of geology and drill-testing that
will:
- Test high-priority, drill-ready targets immediately to the
north and south along strike from the Rio 27 mine;
- Map, sample and test drill-targets associated with the
epithermal veins in the western portion of the concession area,
and;
- Begin mapping and sampling of the favorable structures and
dykes, with cross-cutting ocoite and associated copper oxides, that
are found at multiple locations within the project area.
The above program will allow Vortex to rapidly test
high-priority, drill-ready targets while concurrently advancing the
regional geologic work to generate additional targets for
drilling.
Vikas Ranjan, Chief Executive
Officer and a Co-Founder of Vortex Metals, stated "we are very
excited to conclude the Definitive Agreement and begin exploration
work. Illapel is a drill-ready project that extends
from, an existing copper mine. Opportunities
like this are extremely rare and we look forward to
drilling."
Terms and Conditions
The Optionors are the beneficial and legal owners of an
undivided one hundred percent (100%) interest in the Illapel
Property that includes portions of Rio 27 Concessions that also
host the Rio 27 Mine.
Optionors have agreed to grant an exclusive option to Vortex to
acquire a sixty percent (60%) interest in, and to, the
Property (the "First Option"); and If the First Option is exercised
in full, the Optionors have agreed to grant an exclusive option to
Vortex to acquire a further twenty percent (20%) interest, for a
total of 80% in the entity that will be incorporated upon exercise
of the First Option subject to the terms set forth herein (the
"Second Option". Such terms are described later in this press
release under the heading Terms and Conditions of the Illapel
Copper Deal.
The Option will also include parts of Rio 27
Concessions that host the Rio 27 Mine, an existing mining
operation owned by SLM Rio 27 De Farellon Sánchez . The Rio 27
mine has been in production since 2010 with its near-site
processing plant. Farellon Sánchez has advised that to date,
approximately 400,000 tonnes of mineralized material with an
average grade of 1.39% copper has been processed at site. The
option agreement provides a right of first refusal (ROFR) on the
Rio 27 Mine and processing facility.
Co-founder and Executive Chairman, Michael Williams commented that "with Illapel
property option now in our property stable alongside our two
Mexican projects Riqueza Marina and
Zaachila, we believe that we
provide our shareholders with three excellent opportunities to
potentially make a discovery that could dramatically impact Vortex
Metal."
The transaction is subject to several conditions including the
approval of the TSX Venture Exchange. The material terms and
conditions of the definitive agreement are as follows:
Grant of First Option
Vortex may exercise the First Option by satisfying all of the
following conditions (collectively, the "First Option Conditions
of Exercise"):
making cash payments to Windows Minerals in the
following amounts and dates:
$200,000 on the
date which is five (5) Business Days following the Closing
Date;
$150,000 no later
than twelve (12) months from the Closing Date;
$200,000 no later
than twenty-four (24) months from the Closing Date;
$275,000 no later
than thirty-six (36) months from the Closing Date;
$275,000 no later
than forty-eight (48) months from the Closing Date; and
completing Share issuances to Windows Minerals
in the following amounts and dates:
3,000,000 no later than the earlier of: (A) date
that is twenty-four (24) months from the Closing Date; and (B) the
date on which the Company sells all, or substantially all, of its
operations in Mexico;
5,000,000 no later that the date that is sixty
(60) months from the Closing Date; and
15,000,000 no later than the date that is
seventy-two (72) months from the Closing Date.
making cash payments to SLM Rio in monthly
installments of $4,500 starting six
(6) months from the Closing Date, with a cap of $226,000, corresponding to Vortex's contribution
to settle an ENAMI Debt.
incurring Exploration Expenditures on the
Property in the following amounts and dates:
$2,000,000 by the
date which is twenty-four (24) months from the Closing Date;
and
an additional $1,000,000 by the date that is thirty-six (36)
months from the Closing Date;
an additional $2,000,000 by the date that is forty-eight (48)
months from the Closing Date; and
an additional $5,000,000 by the date that is sixty (60) months
from the Closing Date.
completing a Pre-Feasibility Study on the
Property no later than the date that is seventy-two (72) months
from the Closing Date. Notwithstanding the forgoing, Vortex
may extend the time to complete the Pre-Feasibility Study
referenced in this Section 5.1(d) to the date which is no later
than the date which is eighty-four (84) months from the Closing
Date by paying $200,000 in cash to
the Optionor at the end of year five or sixty (60) months from the
effective date of this agreement.
Vortex may, at its sole and absolute discretion, accelerate the
funding with respect to the Exploration Expenditures set forth in
Section 5.1(d) above. If Vortex incurs in Exploration Expenditures
in an amount greater than required be an applicable date in 5.1(d),
then such excess shall be credited toward the next Exploration
Expenditure requirement.
If Vortex incurs in excess of $10,000,000 in Exploration Expenditures on the
Property prior to the date that is sixty (60) months from the
Closing Date, but ultimately does not exercise the First Option,
Windows Minerals will grant Vortex the Expenditure Return Royalty
on its Property and a mortgage and prohibition to transfer the
Property in favor of Vortex to secure payment of the Expenditure
Return Royalty. Such mortgage and prohibition shall be postponed to
those securities required by financing institutions to fund the
development of a mining project over the Property. The Expenditure
Return Royalty will have a cap on royalty payments equal to the
amount of Exploration Expenditures incurred by Vortex on Windows
Minerals' Property.
All Vortex Shares issuable pursuant to the Definitive Agreement
will be subject to a 12-month contractual escrow from the date of
issuance. It is expected that Ventana will nominate one person to
the board of Vortex following the definitive agreement becoming
effective upon receiving all regulatory approvals, including the
approval of Toronto Venture Stock Exchange (TSXV).
Dr. John E. Larson, Ph.D., is a
qualified person ("QP") as defined by NI 43-101 and has reviewed
and approved the technical content of this press release.
About Vortex Metals Inc.
Vortex Metals Inc. is the parent company of Mexican subsidiary
Empresa Minera Acagold, S.A. de C.V., which is the owner of a 100%
interest in two drill-ready high-potential
copper volcanogenic massive sulfide (VMS) properties
(Riqueza Marina and Zaachila)
in the state of Oaxaca, and a third high-potential gold
property (El Rescate) in the state of Puebla.
The Oaxaca projects incorporate the most highly
prospective areas of high-grade copper mineralized surface
exposures ('gossans') and prominent gravity anomalies along an
emerging copper VMS belt that includes Minaurum Gold's
(TSXV:MGG) Santa Marta project.
Forward-Looking
Statements
This press release may contain forward looking statements that
are made as of the date hereof and are based on current
expectations, forecasts and assumptions which involve risks and
uncertainties associated with our business including permitting
approvals, any private placement financings, the uncertainty as to
whether further exploration will result in the target(s) being
delineated as a mineral resource, capital expenditures, operating
costs, mineral resources, recovery rates, grades and prices,
estimated goals, expansion and growth of the business and
operations, plans and references to the Company's future successes
with its business and the economic environment in which the
business operates. All such statements are made pursuant to the
'safe harbour' provisions of, and are intended to be
forward-looking statements under, applicable Canadian securities
legislation. Any statements contained herein that are statements of
historical facts may be deemed to be forward-looking statements. By
their nature, forward-looking statements require us to make
assumptions and are subject to inherent risks and uncertainties. We
caution readers of this news release not to place undue reliance on
our forward-looking statements as several factors could cause
actual results or conditions to differ materially from current
expectations. Please refer to the risks set forth in the Company's
most recent annual MD&A and the Company's continuous disclosure
documents that can be found on SEDAR at www.sedar.com. The
Company does not intend, and disclaims any obligation, except as
required by law, to update or revise any forward-looking statements
whether as a result of new information, future events or
otherwise.
The Company cautions that mineralization on, or production from,
neighbouring properties is no guarantee of the existence of similar
mineralization or a guarantee of future production from the Illapel
Project.
Neither the 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.
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SOURCE Vortex Metals