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Power Metal Resources #POW – Golden Metal Resources Nevada Presentation Released Highlighting Exploration Potential of the Recently acquired Projects Located in Mining Friendly Nevada
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company has prepared an information presentation covering the recently acquired Golconda Summit, Garfield, and Stonewall Projects (collectively the “Projects”) all located in mining friendly Nevada, USA.
This information presentation may be viewed through the following link:
https://www.powermetalresources.com/presentation/golden-metal-resources-presentation/
The Nevada Projects are held by Golden Metal Resources Ltd (“Golden Metal”) a wholly owned subsidiary of Power Metal and include the Golconda Summit carlin-type gold Project, Stonewall epithermal-type Au-Ag Project, and the Garfield skarn-type Cu-Au Project.
The details underlying the acquisition of the Nevada Projects are provided in previous Power Metal announcements which can be viewed through the following links:
Golconda (1 June 2021)
Garfield/Stonewall (17 June 2021)
PRESENTATION HIGHLIGHTS:
Regional Background
· The Company views Nevada as one of the most prospective jurisidctions in the world for the discovery of world class precious metal deposits.
· Nevada was ranked #1 in the Investment Attractiveness Index in the Fraser Institute Annual Survey of Mining Companies, 2020 1.
· The Projects are located within some of the prolific mining trends within the state including the Battle Mountain – Eureka Trend (Golconda Summit), and the Walker Lane Mineral Trend (Stonewall and Garfield).
Golconda Summit Project
§ The Golconda Summit Project (“Golconda”) is located entirely on the Bureau of Land Management (“BLM”) ground less than 15km east of the town of Winnemucca, Nevada.
· Golconda is located within the same host rocks (Havallah Sequence upper plate rocks as well as lower plate Edna Mountain Formation and Antler Peak Limestones) as the nearby multi-million ounce Turquoise Ridge, Lone Tree Complex, and Marigold gold mines.
· Previous exploration on the Project by the Nerco Mineral Company is 1989 encountered significant gold mineralisation located within upper plate Havallah Sequence rocks including surface mechanised trenching assay results of 7.6m of 24.0g/t Au and 15.2m of 8.6g/t Au, as well as shallow reverse circualtion driling results of 10.7m @ 3.9g/t Au 2.
· Golconda is considered by the Company to be prospective for the identification of additional near-surface gold mineralisation within Havallah Sequence upper plate rocks as well as for Carlin-type replacement style gold mineralisation within lower plate Edna Mountain Formation and Antler Peak limestones located below the Golconda thrust fault.
· Permits for trenching and drilling are currently being prepared and will be submitted shortly, with receipt of full permits expected within 4-6 weeks.
Garfield Project
§ The Garfield skarn-type Cu-Au Project (“Garfield”) is located approximately 10km east of the town of Hawthorne in Mineral County, Nevada.
§ Garfield is 100% owned by Golden Metal and is located entirely on BLM ground.
§ The Garfield Project was originally centered around a small gossan exposed within extensive Quarternary alluvial sediments which cover most of the Project. Work undertaken in 2016 by previous owner Sunrise Resources plc included a single trench excavated within the gossan which returned 22m of 0.33% copper, including a 2m sub-interval which graded 2.18% copper (16-18m) and a separate 2m sub-interval grading 1.2g/t Au. The trench ended in copper and gold mineralisation and remains open along strike.
§ Follow up regional prospecting returned several >1% (up to 5.53%) copper grab samples kilometres from the main gossan showing. No additional follow up work has been completed to date.
§ Golden Metal will carry out extensive grid-based soil sampling as well as prospecting which aims to prove up the continuity of skarn and porphyry-style mineralisation between the various copper rich historic sampling sites.
Stonewall Project
§ The Stonewall epithermal-type Au-Ag Project (“Stonewall”) is located approximately 15m south of the historic mining town of Goldfield in Nye County, Nevada.
§ Stonewall is 100% owned by Golden Metal and is located entirely on BLM ground.
§ The Stonewall Project is centered on a approximately 1.2km long (open along strike) milky-white quartz vein with prevalent low-sulphidation epithermal boiling textures, which varies in thickness between 15-20m along its outcropping extent.
§ Minimum shallow historic drilling tested a limited strike length along the vein (away from the surface samples displaying the strongest epithermal-type boiling textures) and returned downhole epithermal vein intersections of up to 12m in width with stockwork zones up to 70m wide with anomalous gold, silver and mercury results.
§ Following a Phase I Programme which will include prospecting, geological mapping and rock sampling, Golden Metal plans on executing a diamond drilling programme on the Property which will not only test the eastern extent, where boiling textures at surface are best developed, but also the broader system at depth where it is postulated the Au-Ag boiling zone of the system could be found.
BACKGROUND TO GOLDEN METAL AND PLANNED CORPORATE ACTIVITY
Golden Metal is a private United Kingdom domiciled company which is a wholly owned subsidiary of Power Metal.
The intention is to arrange an initial public offering of Golden Metal in the London capital markets targeting admission to trading in Autumn 2021 and the Company is taking preparatory steps to enable that proposed listing.
Glossary
Carlin deposit: Sediment-hosted disseminated gold deposits which are typically found in Nevada. They are characterised by invisible (typically microscopic) gold which is found within the crystal lattice of pyrite and arsenopyrite grains.
Epithermal deposit: Gold deposits which are formed from gold rich hydropthermal fluids within shallow crustal levels.
Gossan: Often red, orange or brown Intensely oxidized, weathered or decomposed rocks found at surface which result from the weathering of mineralised country rocks (typically sulphide-rich, including pyrite).
Low sulphidation epithermal boiling textures: Sub-classification of epithermal deposits which form at shallower crustal depths than high sulphidation deposits. The main control for gold deposition within these systems is fluid boiling (which leads to the formation of boiling textures) caused by a decrease in confining pressure as gold-rich hydrothermal fluids migrate to the surface.
Quaternary alluvial sediments: Young sedimentary cover which typically post-dates most gold mineralisation in Nevada. These sediments typically erode from nearby mountains and are transported to adjacent basins by fluvial action. They then form a blanket of loose sediment which covers bedrock within the valley bottoms, obscuring any precious or base metal mineralisation within these areas.
Skarn deposit: Deposits which form within carbonate rich host rocks adjacent to porphyry deposits.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
References:
1: Fraser Institute Annual Survey of Mining Companies, 2020, published 23 February 2021 see: https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2020
2: Summary Report for the Golconda Summit Property Iron Point Mining District, Humboldt County, Nevada; unpublished report prepared for Carlin Gold Corporation and Toquima Minerals US Inc. by K. Brook, dated 4 April 2006.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries
The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources (POW) – Acquisition of Gold-Copper Projects Nevada USA
Signed Agreement to acquire a 100% Interest in the Garfield Gold-Copper and the Stonewall Gold Exploration Properties Located in Nevada, USA
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the execution of an agreement (the “Agreement”) to acquire two exploration properties in Nevada USA.
The projects include the Garfield Gold-Copper Project and the Stonewall Gold Project (together the “Acquisition Properties” or the “Properties”), acquired outright from London quoted Sunrise Resources plc (LON:SRES).
The Properties will be acquired by a Nevada limited liability new company which will be the wholly owned local Nevada operating company for Golden Metal Resources Limited (“Golden Metal”), Power Metal’s 100% owned UK private subsidiary.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“The Acquisition Properties provide Power Metal with further exposure to precious and base metals exploration in Nevada USA and complement the recently acquired option over the Golconda Summit Gold Property, also in Nevada and announced on 1 June 2021.
Through this transaction Golden Metal, the wholly owned Power Metal subsidiary, now has a trio of gold – silver – copper exploration projects, targeting major metal discoveries in Nevada USA.
We expect to launch ground exploration in Nevada shortly, initially targeting near surface significant gold mineralisation at the Golconda Summit gold property and thereafter initial work programmes on the two properties acquired with today’s announcement. Further updates to the market in this regard are expected in the near term.”
VENDOR AND PROPERTY INFORMATION
The Vendor of the Properties is London AIM quoted Sunrise Resources plc (LON:SRES) and its two Nevada based wholly owned subsidiaries SR Minerals Inc and Westgold Inc.
The Acquistion Properties consist of two portfolios of United States Department of the Interior Bureau of Land Management (“BLM”) Mining Claims held 100% and in good standing by SR Minerals Inc. for the Garfield Gold-Copper Project (“Garfield”); and by Westgold Inc. for the Stonewall Gold Project (“Stonewall”).
Garfield
The Garfield Project is located approximately 10km east of the town of Hawthorne in Mineral County, Nevada. Garfield is in the prolific Walker Lane mineral belt which hosts several world class gold-silver epithermal (Comstock Lode, Tonopah), copper-gold porphyry (Anaconda), and iron-oxide-copper-gold deposits (Pumpkin Hollow).
Garfield was staked to cover a small area of gossanous material occurring at surface and discovered by Sunrise Resources in 2015. Initial sampling over the gossan returned rock results up to 6% Cu, 3.5g/t Au, and 124g/t Ag. A single 26m trench was oriented over part of the gossan in 2016 and returned an interval of 22m of 0.33% copper, including a 2m sub-interval grading 2.18% copper (16m-18m), and a separate 2m sub-interval grading 1.2g/t Au. The trench ended in mineralisation and remains open along strike. No additional follow up work has been completed on the Project.
The Company plans on executing a Phase 1 work programme that will include a property wide systematic soil geochemical survey designed to test continuity of skarn and porphyry-style mineralisation and elevated copper between the various historic grab sampling localities. The soil survey will be followed by a programme of trenching which should provide a cost effective means of evaluating any copper, gold and silver anomalies identified by the soil survey.
In addition the 2016 trench will be re-opened and extended to provide coverage of the mineralisation which currently remains open along strike.
Stonewall
Stonewall is located approximately 15km south of the historic mining town of Goldfield in Nye County, Nevada. Stonewall is also in the prolific Walker Lake mineral belt, and less than 60km southwest of the famous silver deposits of Tonopah which produced over 138 million ounces of silver from 1900-1921.1
Stonewall is centred on an approximately 1.2km long (open along strike) milky-white quartz vein with prevalent low-sulphidation epithermal boiling textures, which varies in thickness between 15-20m along its outcropping extent.
Rock sampling by previous operators returned anomalous gold-silver values (up to 1.17g/t Au and 161g/t Ag) with elevated mercury, which is characteristic of the shallow parts of a low-sulphidation epithermal system.
Minimal shallow historic drilling tested a limited strike length along the vein and returned downhole epithermal vein intersections up to 12m in width with stockwork zones up to 70m wide with elevated gold and silver results. Drilling was completed along parts of the vein easily accessible for a road, with the zones displaying the strongest epithermal textures remaining untested.
Placer Dome Inc. (now Barrick Gold Corp.), who optioned the Stonewall property in 2003, completed fluid inclusion analysis on surface samples which determined formation temperatures of 170°C, consistent with the upper parts of the epithermal System.
Considering the widths of the quartz vein and surrounding stockwork/alteration zones (up to 70m), the mapped strike-length extent (currently 1.2km; but remains open under cover) and the well developed boiling textures found at surface, the Company is of the belief that the Stonewall vein may represent the upper parts of a sizeable buried low-sulphidation epithermal system.
The Company plans on executing a diamond driling programme at Stonewall which will not only test the eastern extent, where boiling textures at surface are best developed, but also the broader system at depth where it is postulated the Au-Ag boiling zone of the system would be found.
TRANSACTION TERMS
The principal terms to acquire a 100% interest in the Properties are as follows:
– Power Metal will pay initial consideration of £20,000 cash and £61,875 payable through the issue to the Vendors of 2.25 million new ordinary shares of 0.1p each in Power Metal at a price of 2.75p per share (“new Ordinary Shares”)(“Consideration Shares”).
– In addition, Power Metal will issue to Sunrise Resources plc 2.25 million warrants with an exercise price of 3.75p per new Ordinary Share and life to expiry of 2 years from the date of issue (“Warrants”). Should the volume weighted average price (“VWAP”) of Power Metal shares meet or exceed 10 (ten) pence for 5 trading days Power Metal may serve notice on Sunrise Resources plc providing 14 calendar days to exercise and pay for the Warrants or the Warrants will be cancelled.
– The Vendors will retain a 2% Net Smelter Return (“NSR”) Royalty over the Properties. 1% of each Project NSR royalty may be repurchased by Golden Metal for US$1,000,000 at any time.
– The Properties will be acquired by a Nevada limited liability newly formed company and the local operating company wholly owned by Golden Metal, Power Metal’s 100% owned UK private subsidiary.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 2,250,000 Consideration Shares to be admitted to trading on AIM which is expected to occur on or around 24 June 2021 (“Admission”). The Consideration Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
Following Admission, the Company’s issued share capital will comprise 1,149,017,211 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
References:
1Tonopah History – Tonopah, Nevada (tonopahnevada.com)
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Power Metal Resources #POW: Agreement – Golconda Gold Property Nevada USA
Agreement – Golconda Gold Property Nevada USA
Company has Signed an Assignment and Assumption Agreement Allowing it to Earn a 100% Interest in the Golconda Summit Gold Property Located in Nevada, USA
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the execution of an Assignment and Assumption Agreement (the “Agreement”) between its wholly-owned subsidiary Golden Metal Resources Ltd. (“Golden Metal”) and GR Silver Mining Ltd. (“GR Silver”).
The Agreement gives Golden Metal an option to earn-in to 100% of the Golconda Summit Gold Property (“Golconda Summit” or the “Property”) located in central Nevada, USA.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“We recently formed Golden Metal to act as a holding company for new acquisitions of precious and base metal projects located in North America and I am pleased to announce this first transaction within the mining friendly state of Nevada.
The option agreement on the Golconda Summit Gold Property gives the Company exposure to an exciting carlin-type gold project located in the highly gold endowed Great Basin district at the confluence of the prolific Battle Mountain-Eureka and Getchell gold trends.
I look forward to updating the market with further information on the Property in the coming weeks.”
Vendor and Property Information
GR Silver Mining Ltd is a Vancouver based publicly traded (TSX-V:GRSL) junior mining company focused on advanced stage silver-gold assets in Mexico.
GR Silver has held an option agreement since 11 August 2017, to earn-in to 100% of the Golconda Summit Gold Property from the underlying vendor Eureka Resources Conversion LLC (“Eureka Resources”), a private Nevada based company.
Golconda Summit is an early-stage gold exploration project comprising 44 current Bureau of Land Management (“BLM”) Lode Claims held in the name of Eureka Resources.
The Property is located approximately 15km east of to the town of Winnemucca, at the confluence of the prolific Battle Mountain-Eureka Trend and Getchell Trends and within Nevada’s Great Basin metallogenic province which is one of only six global gold belts hosting gold endowments of +200Moz. The Property is approximately:
- 35km southwest of the Nevada Gold Mines LLC (“Nevada Gold” a Barrick Gold Corporation/Newmont Corporation joint venture) Turquoise Ridge Complex underground and open-pit mines which have Total 43-101 compliant Resources (Measured & Indicated) of 130Mt @ 4.30g/t Au (for 18Moz Au) inclusive of Total Reserves (Proven & Probable) of 83Mt @ 5.02g/t Au (for 13Moz Au) 1;
- 20km northwest of Nevada Gold’s Phoenix Operation Lone Tree open-pit mine which reportedly produced 4.2Moz Au at an average grade of 2.06g/t Au up until its closure in 2006 2; and
- 25km northwest of SSR Mining Inc.’s Marigold open-pit mine with current Total 43-101 compliant Resources (Measured & Indicated) of 5.11Moz Au (341Mt @ 0.47g/t Au) 3.
Previous exploration work on the Property by Nerco Mineral Company in 1989 encountered significant gold mineralisation located within upper plate Havallah Sequence rocks including trench assay results of 7.6m @ 24.0g/t Au and 15.2m @ 8.6g/t Au, as well as shallow drilling results of 10.7m @ 3.9g/t Au.4
The Property is considered prospective for the identification of additional near-surface gold mineralisation within Havallah Sequence rocks as well as for Carlin-type replacement style gold mineralisation within lower plate Edna Mountain Formation and Antler Peak Limestone units located below the Golconda thrust fault.
Assignment and Assumption Agreement
- The Agreement signed with GR Silver allows Golden Metal to earn a 100% interest in the Golconda Summit Gold Property located in Humboldt County, Nevada, USA.
- The Agreement signing fee is to be satisfied through a cash payment of US$60,000 (circa £42,495) to GR Silver, to be paid by Power Metal from exisiting cash resources.
- Golden Metal will be assigned the underlying option agreement (“Underlying Option”) signed on 11 August 2017, between GR Silver and the underlying vendor Eureka Resources Conversion LLC.
Underlying Option Agreement
- The Underlying Option agreement allowed GR Silver to earn a 100% undivided interest in the Golconda Summit Gold Property upon satisfying either the Staged Payments Option or the Accelerated Payment Option, both outlined below (Golden Metal will assume the terms of this agreement unchanged):
Staged Payments Option
– Ten thousand (US$10,000) dollars due and payable on the execution of the Underlying Option (Paid previously by GR Silver);
– A further fifteen thousand (US$15,000) dollars due and payable on or before the second (2nd) anniversary of the effective date (Paid previously by GR Silver);
– A further fifteen thousand (US$15,000) dollars due and payable on or before the third (3rd) anniversary of the effective date (Paid previously by GR Silver);
– A further twenty thousand (US$20,000) dollars due and payable on or before the fourth (4th) anniversary of the effective date (by 11 August 2021);
– A further twenty-five thousand (US$25,000) dollars due and payable on or before the fifth (5th) anniversary of the effective date (by 11 August 2022);
– A further fifty thousand (US$50,000) dollars due and payable on or before each of the sixth (6th), seventh (7th), eight (8th), ninth (9th) and tenth (10th) anniversaries of the effective date, for a combined total of $335,000.
Accelerated Payment Option
– GR Silver may accelerate the exercise of the Underlying Option at any time by paying the owner a lump sum cash payment equal to one million (US$1,000,000) dollars less any annual Undelying Option payment paid to the owner prior to the date thereof.
Upon completion of the earn-in agreement, Eureka Resources will be granted a 1% net smelter return royalty which can be bought back at any time within one (1) year after commencement of production of any minerals from the Property for a price of one million dollars (US$1,000,000).
Golconda property maps are available on the Company’s website through the following link:
Golconda Property Maps | Power Metal Resources plc
The maps include:
Figure 1: Regional scale Golconda Summit Property Map
Figure 2: Property scale Golconda Summit Property Map
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
References:
Source 1: Nevada Gold Mines Technical Report on the Turquoise Ridge Complex, State of Nevada, USA; NI 43-101 Report dated 25 March 2020. https://s25.q4cdn.com/322814910/files/doc_downloads/operations/Turquoise-Ridge-Technical-Report-March2020.pdf
Source 2: Magmatic-Hydrothermal Gold Mineralization at the Lone Tree Mine, Battle Mountain District, Nevada; 1 August 2019. https://doi.org/10.5382/econgeo.4665
Source 3: SSR Mining Inc Mineral Reserves and Resources Statement, announced 30 March 2021 https://www.ssrmining.com/_resources/2021-03-30-Reserves-and-Resources-Final.pdf
Source 4: Summary Report for the Golconda Summit Property Iron Point Mining District, Humboldt County, Nevada; unpublished report prepared for Carlin Gold Corporation and Toquima Minerals US Inc. by K. Brook, dated 4 April 2006.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Tertiary Minerals (TYM) – Notification of Major Holdings – Bergen Asset Management
TR-1: Standard form for notification of major holdings
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NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible)i |
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1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: |
Tertiary Minerals PLC |
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1b. Please indicate if the issuer is a non-UK issuer (please mark with an “X” if appropriate) |
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Non-UK issuer |
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2. Reason for the notification (please mark the appropriate box or boxes with an “X”) |
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An acquisition or disposal of voting rights |
X |
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An acquisition or disposal of financial instruments |
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An event changing the breakdown of voting rights |
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Other (please specify)iii: |
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3. Details of person subject to the notification obligationiv |
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Name |
Bergen Asset Management, LLC |
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City and country of registered office (if applicable) |
Delaware, USA |
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4. Full name of shareholder(s) (if different from 3.)v |
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Name |
BNP Paribas Securities Services as Custodian for Bergen Global Opportunity Fund, LP. |
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City and country of registered office (if applicable) |
New York, USA |
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5. Date on which the threshold was crossed or reachedvi: |
26 November 2019 |
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6. Date on which issuer notified (DD/MM/YYYY): |
28 November 2019 |
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7. Total positions of person(s) subject to the notification obligation |
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% of voting rights attached to shares (total of 8. A) |
% of voting rights through financial instruments |
Total of both in % (8.A + 8.B) |
Total number of voting rights of issuervii |
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Resulting situation on the date on which threshold was crossed or reached |
7.32% |
N/A |
7.32% |
478,075,665 |
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Position of previous notification (if applicable) |
N/A |
N/A |
N/A |
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8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii |
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A: Voting rights attached to shares |
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Class/type of ISIN code (if possible) |
Number of voting rightsix |
% of voting rights |
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Direct (Art 9 of Directive 2004/109/EC) (DTR5.1) |
Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1) |
Direct (Art 9 of Directive 2004/109/EC) (DTR5.1) |
Indirect (Art 10 of Directive 2004/109/EC) (DTR5.2.1) |
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35,000,000 |
7.32% |
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SUBTOTAL 8. A |
35,000,000 |
7.32% |
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B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a)) |
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Type of financial instrument |
Expiration |
Exercise/ |
Number of voting rights that may be acquired if the instrument is exercised/converted. |
% of voting rights |
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SUBTOTAL 8. B 1 |
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B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b)) |
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Type of financial instrument |
Expiration |
Exercise/ |
Physical or cash settlementxii |
Number of voting rights |
% of voting rights |
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SUBTOTAL 8.B.2 |
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9. Information in relation to the person subject to the notification obligation (please mark the applicable box with an “X”) |
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Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii |
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Full chain of controlled undertakings through which the voting rights and/or the |
X |
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Namexv |
% of voting rights if it equals or is higher than the notifiable threshold |
% of voting rights through financial instruments if it equals or is higher than the notifiable threshold |
Total of both if it equals or is higher than the notifiable threshold |
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Bergen Global Opportunity Fund, LP |
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Bergen Asset Management, LLC |
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Eugene Tablis |
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10. In case of proxy voting, please identify: |
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Name of the proxy holder |
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The number and % of voting rights held |
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The date until which the voting rights will be held |
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11. Additional informationxvi |
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Place of completion |
Florida, USA |
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Date of completion |
27 November 2019 |
END
Tertiary Minerals (TYM) Issue of Convertible Security
The Company hereby announces that on 26 November 2019 it has issued a convertible security with the nominal value of £263,000 (at the purchase price of £232,000) pursuant to, and on and subject to the terms and conditions set out in, the convertible securities issuance deed dated 19 November 2019, the details of which were disclosed to the market on 20 November 2019.
For more information please contact:
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Tertiary Minerals plc: |
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Richard Clemmey, Managing Director |
+44 (0) 1625 838 679 |
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Patrick Cheetham, Chairman |
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SP Angel Corporate Finance LLP Nominated Adviser and Broker |
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Richard Morrison |
+44 (0) 203 470 0470 |
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Caroline Rowe |
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About Tertiary Minerals plc
Tertiary Minerals plc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration company building and developing a multi-commodity project portfolio – Industrial minerals, base and precious metals.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Tertiary Minerals plc (TYM) Secures up to £622,000 Investment by way of Convertible Securities
Highlights:
- Up to a nominal amount of £653,000 in zero coupon convertible securities allows Tertiary Minerals plc to fund the planned exploration programmes on its recently acquired Pyramid Gold and Paymaster Polymetallic Projects in Nevada and for general working capital purposes.
- Funding provided by U.S. based fund, Bergen Global Opportunity Fund, LP, an institutional investor.
- Staged funding potentially minimises dilution to existing shareholders.
The Company announces that it has entered into a convertible securities issuance deed (the “Agreement”) with Bergen Global Opportunity Fund, LP (the “Investor”), a U.S. based institutional investment fund, in connection with an issuance by the Company of zero coupon convertible securities having a nominal amount of up to £653,000 (the “Convertible Securities”).
The Convertible Securities will (subject to satisfaction of certain conditions) be issued in tranches and the Company will make an announcement of the issue of each Convertible Security. The initial Convertible Security will have the purchase price of £232,000 and the nominal value of £263,000 and will be issued shortly. Any subsequent Convertible Securities will be issued at a time agreed between the Company and Investor and will be purchased at their nominal value. The aggregate nominal value of any subsequent Convertible Securities issued will be determined by mutual consent of the Company and Investor but will not exceed £390,000.
Each of the Convertible Securities will have a term of 24 months.
The Convertible Securities will (subject to the satisfaction of certain conditions) be convertible into ordinary shares of the Company (the “Shares”), in whole or in part, at the option of Investor. The Company will make an announcement each time any Convertible Securities are converted in whole or in part and will specify in such announcement the relevant conversion price, which will be, at Investor’s election: (a) 95% of the average of five daily volume-weighted average prices of the Shares on AIM during a specified period preceding the relevant conversion or (b) 135% of the average of the daily volume-weighted average prices of the Shares for the 20 consecutive trading days immediately prior to 19 November 2019.
The Investor has agreed to certain, substantial, limitations on its ability to dispose of the Shares following a conversion of the Convertible Securities. The Investor is also contractually precluded from shorting the Company’s shares.
The Company will have the right to repurchase the initial Convertible Security for cash at 100% of its nominal value (and without a fee or penalty) within 120 days of the issue date of the initial Convertible Security.
In connection with the Agreement:
(A) the Company will issue to the Investor 17,000,000 Shares by way of a commencement fee in relation to the overall funding (“Commencement Fee Shares”);
(B) the Company will issue to the Investor 18,000,000 Shares at par to collateralise the investment (“Collateral Shares”). Investor may be required to make a further payment to the Company once all of the obligations of the Company under the Agreement have been finally met and no amount remains outstanding to the Investor, depending on the price of Shares at such time; and
(C) the Company has agreed that it will issue 22,000,000 warrants with an exercise period of 48 months from the date of issue (the “Warrants”) to the Investor entitling the Investor (or any subsequent holder of the Warrants) to subscribe for one Share per Warrant at the exercise price equal to 0.33588 pence.
The Company has applied for admission of the Commencement Fee Shares and Collateral Shares to trading on AIM, and this is expected to become effective at 8:00a.m. on or around 26 November 2019.
Application will be made to the London Stock Exchange for any Shares issued and allotted on exercise of the Warrants or conversion of the Convertible Securities to be admitted to trading on AIM. The Convertible Securities will only be issued to the extent that the Company has corporate authority to do so.
The proceeds for the issue of the Shares and the Convertible Securities will be used by the Company to fund the planned exploration programmes on its recently acquired Pyramid Gold and Paymaster Polymetallic Projects in Nevada and for general working capital purposes.
Total Voting Rights
Following admission of the Commencement Fee Shares and Collateral Shares, the Company will have 478,075,665 Shares in issue with each Share carrying the right to one vote. There are no Shares currently held in treasury. The total number of voting rights in the Company is therefore 478,075,665 and this figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure and Transparency Rules.
Richard Clemmey, Managing Director of the Company, commented today: “The current market for natural resource companies remains very challenging and we are therefore pleased to have secured a flexible method of financing as opposed to a straight equity raise which, in the current market, often come at a large discount to the share price and would be highly dilutive.”
“The staged funding now enables the Company to move ahead with exploration and development on our two new exciting projects, Pyramid and Paymaster.”
About Tertiary Minerals plc
Tertiary Minerals plc (ticker symbol ‘TYM’) is an AIM-traded mineral exploration company building and developing a multi-commodity project portfolio – Industrial minerals, base and precious metals.
About Bergen Asset Management LLC
Based in the U.S., Bergen Asset Management, LLC is an institutional investor with a particular focus on direct investments in small-cap companies around the world, and a track record of success.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
For more information please contact:
|
Tertiary Minerals plc: |
|
|
Richard Clemmey, Managing Director |
+44 (0) 1625 838 679 |
|
Patrick Cheetham, Chairman |
|
|
SP Angel Corporate Finance LLP Nominated Adviser and Broker |
|
|
Richard Morrison |
+44 (0) 203 470 0470 |
|
Caroline Rowe |
|
Tertiary Minerals: A bargain catch in a monster mining region
- Nevada continues to shine
- A change in direction for Tertiary Minerals
- Paymaster project shows promise
- Pyramid Project: A golden catch
- Gold and Silver on the rise
Nevada continues to shine
Ranked as the world’s top jurisdiction for mining investment – when it comes to fishing for metals, Nevada looks to be the place to net a winner.
At the beginning of July mining super-heavy-weights Barrick Gold and Newmont Goldcorp announced the official launch of their huge joint gold mining venture in Northern Nevada – marking another prestigious boost for the world-class mining jurisdiction.
Following a visit to the joint projects Nevada Governor Steve Sisolak commented:
“There’s a reason why Nevada is ranked as one of the more attractive jurisdictions in the world for mining investment. It’s not only the geological attractiveness, but that we have a true partnership with the state and federal government in growing a responsible, safe, and beneficial industry for our local communities”
Tertiary Minerals a fresh strategy kick starts with Nevada Prospects
Another company that’s been hooked by Nevada’s outstanding mining opportunities is AIM- traded mineral exploration and development company Tertiary Minerals (AIM:TYM).
Over the last year the company has made a strategic move to broaden its portfolio beyond the existing focus on fluorspar. As well as maintaining projects for the EU listed critical mineral, Tertiary are now aiming to build a multi-commodity project portfolio including precious metals, base metals and industrial minerals.
The company are hopeful that by targeting a number of mining friendly jurisdictions they can provide shareholders with exciting projects capable of generating revenue across a shorter timescale, as well as earlier stage projects which can be developed organically.
With its rich mining history, geology and supportive government the company have set their sights on Nevada to provide this, announcing the acquisition of two new projects in the state; the Paymaster polymetallic project and the Pyramid gold project.
Paymaster project shows promise
Back in February, Tertiary staked claim to the Paymaster zinc-copper-silver-Cobalt-Tellurium prospect, an area of more than 390 acres located approximately 30km south west of Tonopah, Nevada.
The project showed immediate promise with Tertiary revealing that grab samples had produced significant assays up to 21% zinc, 6.5% lead, 3.3% copper and 253g/t silver as well as high levels of high-tech metals tellurium and cobalt. 
Shareholders were left waiting in anticipation until July for further sample results. But the wait appears to have been well worth it.
Soil sampling revealed two large zones of zinc-silver mineralisation for follow-up exploration, with rock sampling from their Valley Prospect providing assays of 7.5% zinc, 4.3% lead and 180g/t silver.
Richard Clemmey, Managing Director of the Company, commented: “We are pleased to be reporting these two new targets as a result of follow up of our soil sampling results at the Paymaster Project and to be closing in on drill targets at such an early stage in the life of the project.”
Pyramid Project a golden opportunity
Quick to keep developing their portfolio, Tertiary soon set their sights on Gold, securing a 20-year lease (with the option to buy) over a group of nine patented claims in the Walker Lane area.
With Walker Lane rated such a highly prospective area for gold mining,, Tertiary did extremely well to snap up the site. Particularly considering that historic drilling results at hole PYR9 intersected visible gold and assayed 1.52m grading 17.8 g/t Au from 94.5m down hole.
As commented by MD Mr Clemmey “Projects with high-grade gold results in drilling that have not already been followed up are hard to find in Nevada.”
Gold and Silver shine demonstrating safe haven potential
Now looks as good a time as ever for Tertiary to be digging for gold and silver. The precious metals have once again demonstrated their safe-haven qualities during the recent periods of economic uncertainty.
Earlier in August gold prices surged through $1,500 a troy ounce for the first time in over six years, whilst silver broke above the $17 a troy ounce mark for the first time since the 14th June 2018. These results perhaps a demonstration of the unique security that gold and silver stocks can offer during economic slowdowns.
Meanwhile, Tertiary will be pleased to hear that Commerzbank’s raw materials analyst Daniel Briesmann has predicted that prices for the metal are on the up. He’s forecast a three-month price of $2,800 per tonne at the end of 2019. Zinc is currently at around $2,260 per tonne.
“I don’t see production coming back onto the market at current levels, so I think we will see a supply deficit, which has already been recorded for the first months of the year” said Briesmann.
Tertiary a bargain
All said, sat just above it’s lowest price of 0.18p, at just 25p, Tertiary looks to be a bargain catch for investors, and offering significant upside potential.
As well as the two highly promising additions discussed, Tertiary’s portfolio includes three strategic fluorspar deposits located in Europe and the USA containing JORC compliant Mineral Resources of over 13 million tonnes of fluorspar mineral.
Fluorspar is an EU listed critical mineral used primarily in metallurgical, ceramics, and chemical industries; as well as for, optical, lapidary, and other important uses.
However, it’s Tertiary’s Paymaster and Pyramid projects which I’d recommend keeping your eyes on. As news starts to flow from these projects and investors catch on I’d expect to see the share price jump.
Back to our analogy ‘fishing for metals’.. always remember, good things come to those who bait! Sorry, I mean wait. These projects are in their early stages. So set out your camping chair, cast your lines and wait to reel it in.
By Harry Dacres-Dixon
Sources:
Brand Communications – Treasure Hunting in Nevada with Tertiary Minerals (TYM): Walker Lane marks the spot for gold
Brand Communications – Tertiary Minerals plc (TYM) New Project Acquisition and MB Project Update
Brand Communications – Tertiary Minerals (TYM) – New Project Acquisition in the Pyramid Mining District of Nevada, USA
Fastmarkets AMM – Analysts divided on 2019 zinc price forecast
Financial Times – Gold prices top $1,500 as haven rally accelerates
Kitco – Gold and Silver Prices Explode to the Upside
Treasure hunting in Nevada with Tertiary Minerals (TYM): Walker Lane marks the spot for gold.
By Harry Dacres-Dixon
- Treasure hunting in Nevada
- Walker Lane: The treasure chest you’ve been looking for
- Tertiary Minerals kick start their hunt for gold
- Gold in Walker Lane not drying up anytime soon
Treasure hunting in Nevada
Ahoy, me hearties! If you’re planning on going hunting for hidden treasures anytime soon, Nevada might be a good place to start. The state ranked as the top jurisdiction in the world for investment according to the Fraser Institute Investment Attractiveness Index. An outcome of both it’s geological attractiveness and the effects of government policy on attitudes toward exploration investment.
It’s no surprise either. The area has world class infrastructure and has been a prolific producer of key metals including copper, cobalt, lithium silver and gold. When it comes to gold, Nevada is up there with the best of them. In fact, if Nevada were a country, it would be the world’s fourth-largest gold producer, behind only China, Australia and Russia.
Walker Lane: The treasure chest you’ve been looking for
Its success lies significantly in three regions Carlin, Cortez and Walker Lane. Whilst the Carlin region has previously taken the headlines, it’s the Walker Lane trend which looks capable of delivering the next big pot of gold.
The Walker Lane is a geologic trough than runs roughly in line with the border between California and Nevada, where the North American Plate meets the Pacific Plate. As well as a significant producer of silver and copper, the mineral belt is host to a number of past and current multi-million-ounce epithermal gold deposits.
Its history stretches back to the late 1850s with the discovery of the famous Comstock Lode. The gold belt holds some of North America’s most crucial mining districts including Comstock, Tonopah, Goldfield, Bullfrog and Aurora.
It’s currently being explored by the likes of Kinross and Barrick at the producing Round Mountain Mine, Gryphon Gold at the Borealis Mine, Newcrest Mining at the Redlich project and Coeur Mining at their Sterling Mine which holds a total inferred resources of 709,000 ounces.
A study by data mining and mineral exploration specialists BW Mining found that, to date, approximately 50 million ounces of gold had been discovered in an area covering roughly 140,000 square kilometres.
For junior gold hunters in Nevada, the Walker Lane Gold Belt offers miners a significantly cheaper exploration target than in Carlin, where sites not already snatched up by the big players are typically deep and out of financial reach for newcomers.
In contrast, Walker Lane remains underexplored offering substantial potential upside. The area is also already known to hold outstanding high-grade gold zones such as at Newrange Golds Pamlico gold project, compared to the Carlin Trend which is generally mining ore less than a gram per tonne.
Tertiary Minerals kick start their hunt for gold
Sounds like an ideal location to go hunting for gold I’d say. And so Tertiary Minerals (TYM) feel too. The AIM-traded mineral exploration and development company announced at the end of May that it was joining the party in Walker Lane, securing a 20-year lease (with the option to buy) over a group of nine patented claims in the area.
The acquisition falls “in line with our strategy to build a new project portfolio which will enable the Company to reduce its future geographical, technical, permitting and commodity risk exposure and provide long-term shareholder value” said MD Richard Clemmey.
Their sites situated in the Pyramid Mining District lies at the Northwest end of the Walker Lane, 40km away from Reno. The company reported that the area has undergone limited exploration in 1989-90.
As part of their announcement, TYM revealed that drilling at hole PYR9 had intersected visible gold and assayed 1.52m grading 17.8 g/t Au from 94.5m down hole. Shiver me timbers!
Mr Clemmey as would be expected was rather happy to deliver the news, commenting: “We are delighted to have acquired an interest in the Pyramid Project. Projects with high-grade gold results in drilling that have not already been followed up are hard to find in Nevada.
Gold in Walker Lane not drying up anytime soon
The move looks an intelligent one for TYM. Whilst Nevada is famous for its droughts, gold supplies in Walker Lane don’t look like they’ll be drying up anytime soon.
This acquisition is just the first step though. Let’s hope that X marks the spot for Tertiary and their next series of announcements reveal some serious treasures.
References
BW Mining Walker Lane
Coeur Mining Sterling, Nevada
Fraser Institute Annual Survey of Mining Companies, 2018
Investing News Nevada’s Walker Lane Gold Trend Ripe for Discovery
TSX Media Nevada Gold Explorer’s Big Exploration Plans Paying Off
321 Gold Treasures of the Walker Lane