New Age Metals Announces Private Placement and First Tranche Closing Raising $920,550

- May 7th, 2018

New Age Metals Inc. (TSXV:NAM; OTCQB:NMTLF; FSE:P7J.F) announces a non-brokered private placement of up to $1,200,000 by way of combined non-flow-through units (“NFT Unit”) at a price of $0.09 per Unit and flow-through units (“FT Unit”) at a price of $0.11 per Unit of the Company.

New Age Metals Inc. (TSXV:NAM; OTCQB:NMTLF; FSE:P7J.F) announces a non-brokered private placement of up to $1,200,000 by way of combined non-flow-through units (“NFT Unit”) at a price of $0.09 per Unit and flow-through units (“FT Unit”) at a price of $0.11 per Unit of the Company.

Each NFT Unit will consist of one common share and one half of one non-transferable share purchase warrant (“Warrant”) with each whole Warrant being exercisable at a price of $0.15 per share during the first year and $0.20 per share during the second year for a period of two (2) years from the date of closing subject to an accelerated expiry clause.

Each FT Unit will consist of one flow-through common share and one half of one non-transferable share purchase warrant (“Warrant”) with each whole Warrant being exercisable at a purchase price of $0.15 per share during the first year and $0.20 per share during the second year for a period of two (2) years from the date of closing subject to an accelerated expiry clause.

The securities to be issued in connection with the private placement will be subject to a four-month plus one-day hold period from the date of closing in accordance with applicable Canadian Securities Laws. Completion of the private placement and any finder’s fees payable are subject to regulatory approval.

Warrant Accelerator Clause

The Warrants will be subject to an acceleration clause. If the closing price of the Company’s shares on the TSX Venture Exchange is at or above $0.30 per share for a period of ten (10) consecutive trading days during the exercise period, the Company may accelerate the expiry date of the Warrants to 30 calendar days from the date express written notice is given by the Company.

1st Tranche Closing

The Company is pleased to announce that it has closed the 1st tranche of the private placement raising an aggregate of $920,550. The Company issued 3,317,222 non-flow-through units (“NFT Unit”) at a price of $0.09 per Unit and 5,654,546 flow-through units (“FT Unit”) at a price of $0.11 per Unit of the Company under the terms and conditions above.

Finder’s fees were paid on part of the 1st tranche closing in the amount of $49,320 cash and 472,606 broker warrants on the same terms as the purchaser warrants, subject to regulatory approval.

All securities issued in connection with the 1st tranche closing are subject to a four month plus one day hold period expiring on September 8, 2018, in accordance with applicable Securities Laws.

The proceeds of the private placement will be used for the projects first economic study, a preliminary economic assessment (PEA), drilling specific targets and for working capital.

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River Valley 2018 Exploration & Development Objectives

  1. Ground IP geophysics from T3 south to T9 (Completed);
  2. Utilize the new resource estimation to establish further drill targets (Q1-Q3 2018);
  3. Continue with drilling in the northern portion of the project (slated for Q3-Q4 2018 & Q1 2019);
  4. Explore more target areas based on recommendations of the updated 43-101 and the 2018 geophysics (slated for Q3-Q4 2018 & Q1-Q2 2019);
  5. Complete mineralogical studies (Complete), ongoing Metallurgical studies;
  6. Continue to advance the River Valley PGM Project towards a Preliminary Economic Assessment (PEA) on the River Valley PGM Deposit; and
  7. Our Corporate Mandate is to build a series of open pits (bulk mining) over the 16 kilometers of mineralization. We will mine, crush, and concentrate on site, then ship the concentrates to Sudbury. The objective of NAM before the March 2018 43-101 was to increase the resource in the northern portion (Pine Zone/Dana North/Dana South/Lismer North) to over 1Moz of PGMs. The new 43-101 accomplished this.

Figure 1: Zone map of the River Valley PGM Deposit Note: The Yellow Band represents the footwall potential area of the River Valley Deposit based on the results of the Pine Zone where footwall mineralization was noted to extend 150 meters eastward from the Pine Zone/ T3 main deposit. At present the only area that has confirmed footwall mineralization is in the Pine Zone (defined from 2015 to 2017 drilling). Geophysics and exploration are in progress to test other areas of the deposit. Management’s specific focus is to outline a sufficient economic resource in the northern portion of the project, and then develop a series of open pits (bulk mining), crush, and concentrate on site, then ship the concentrates to Sudbury.

River Valley PGM Exploration Plan Going Forward

To date an approximate 140,659 meters (461,480 feet) in 628 drill holes have been conducted by the company as operator on the River Valley Project. Several independent NI 43-101 compliant resource calculations have previously been generated for the deposit through the exploration and development phases. In 2016, the company purchased 100% of Mustang Minerals’ southern portion of the River Valley contact (River Valley Extension, News Release – Oct 5th, 2016). This added 4 kilometers of mineralized strike length to the southern portion of the company’s main River Valley Project. The River Valley Deposit’s present resource, with approximately 4.6M PdEq ounces in Measured Plus Indicated mineral resources (0.4 g/t cut-off) and near-surface mineralization, covers over 16 kilometers of continuous strike length. The acquisition of the RVE adds an additional 4 kilometers for a total of 16 kilometers of strike. The March 2018 NI 43-101 report added a new inferred resource of PdEq (Oz) for a total of 729,658 ounces at a 0.4 g/t PdEq cut off on the River Valley Extension (RVE). The company continues to explore and enhance the River Valley PGM Deposit and is progressing towards the completion of a preliminary economic assessment, (PEA).

ABOUT NAM’S PGM DIVISION

NAM’s flagship project is its 100% owned River Valley PGM Project (NAM Website – River Valley Project) in the Sudbury Mining District of Northern Ontario (100 km east of Sudbury, Ontario). Presently the River Valley Project is North America’s largest undeveloped primary PGM deposit with Measured + Indicated resources of 160 million tonnes @ 0.44 g/t Palladium, 0.17 g/t Platinum, 0.03 g/t Gold, with a total metal grade of 0.64 g/t at a cut-off grade of 0.4 g/t equating to 3,297,173 ounces PGM plus Gold and 4,626,250 PdEq Ounces (Table 1). This equates to 4,626,250 PdEq ounces M+I and 2,713,933 PdEq ounces in inferred (see March 21st, 2018 press release). Having completed a 2018 NI-43-101 resource update the company is finalizing its 2018 exploration programs which will include geophysics, and extensive drill programs, which are all working towards the completion of a Preliminary Economic Assessment (PEA).Our objective is to develop a series of open pits (bulk mining) over the 16 kilometers of mineralization (Figure1), concentrate on site, and ship the concentrates to the long-established Sudbury Metallurgical Complex. Alaska: April 4th, 2018, NAM signed an agreement with one of Alaska’s top geological consulting companies. The companies stated objective is to acquire additional PGM and Rare Metal projects in Alaska. On April 18th, 2018, NAM announced the right to purchase 100% of the Genesis PGM Project, NAM’s first Alaskan PGM acquisition related to the April 4th agreement. The Genesis PGM Project is a road accessible, under explored, highly prospective, multi-prospect drill ready Pd-Pt-Ni-Cu property.

The results of the new resource estimation are tabulated in Table 1 below (0.4 PdEq cut-off).

Class Tonnes

‘,000

Pd (g/t) Pt (g/t) Rh (g/t) Au (g/t) Cu (%) Ni (%) Co (%) PdEq (g/t)
Total Measured 62,877.5 0.49 0.19 0.02 0.03 0.05 0.01 0.002 0.99
Total Indicated 97,855.2 0.40 0.16 0.02 0.03 0.05 0.01 0.002 0.83
Total Meas +Ind 160,732.7 0.44 0.17 0.02 0.03 0.05 0.01 0.002 0.90
Inferred 127,662.0 0.27 0.12 0.01 0.02 0.05 0.02 0.002 0.66
Class PGM + Au (oz) PdEq (oz) PtEq (oz) AuEq (oz)
Total Measured 1,440,248 1,999,575 1,999,575 1,136,930
Total Indicated 1,856,925 2,626,675 2,626,675 1,463,793
Total Meas +Ind 3,297,173 4,626,250 4,626,250 2,600,724
Inferred 1,578,367 2,713,933 2,713,933 1,323,809

Table 1: River Valley 2018 Resource Calculation (WSP Canada, Todd McCracken, P.Geo)

Notes:

  1. CIM definition standards were followed for the resource calculation.
  2. The 2018 resource models used Ordinary Krig grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids.
  3. A base cut-off grade of 0.4 % g/t PdEq was used for reporting resources.
  4. Palladium Equivalent (PdEq) calculated using (US$): $1,000/oz Pd, $1,000/oz Pt, $1,350/oz Au, $1750/oz Rh, $3.20/lb Cu, $5.50/lb Ni, $36/lb Co.
  5. Numbers may not add exactly due to rounding.
  6. Mineral Resources that are not mineral reserves do not have economic viability
  7. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

ABOUT NAM’S LITHIUM DIVISION

The Company has six pegmatite hosted Lithium Projects in the Winnipeg River Pegmatite Field, located in SE Manitoba. Three of the projects are drill ready. This Pegmatite Field hosts the world class Tanco Pegmatite that has been mined for Tantalum, Cesium and Spodumene (one of the primary Lithium ore minerals) in varying capacities, since 1969. NAM’s Lithium Projects are strategically situated in this prolific Pegmatite Field. Presently, NAM is the largest mineral claim holders for Lithium in the Winnipeg River Pegmatite Field. On January 15th 2018, NAM announced an agreement with Azincourt Energy Corporation (see Jan 15, 2018Feb 22nd, 2018 and April 11th, 2018May 2nd, 2018 Press Releases) whereby Azincourt will commit up to $4.1 million dollars in exploration, up to 3.25 million shares of Azincourt stock to NAM, up to $210,000 in cash, and a 2% net smelter royalty on all 6 projects. Exploration plans for 2018 are currently in progress, whereby a minimum of $600,000 will be expended this year. For complete details on the terms and conditions of the NAM/AAZ option joint venture please see the press release dated Jan 15th, 2018.

QUALIFIED PERSON

The contents contained herein that relate to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Carey Galeschuk, a consulting geoscientist for New Age Metals. Mr. Galeschuk is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical content of this news release.

On behalf of the Board of Directors

“Harry Barr”

Harry G. Barr

Chairman and CEO

ADDITIONAL INFORMATION

Should you have additional inquiries, please contact Paul Poggione, Corporate Development, Tel: 1-613-659-2773, email: PaulP@NewAgeMetals.com.

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.

Cautionary Note Regarding Forward Looking Statements: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as “continue”, “efforts”, “expect”, “believe”, “anticipate”, “confident”, “intend”, “strategy”, “plan”, “will”, “estimate”, “project”, “goal”, “target”, “prospects”, “optimistic” or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company’s ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward-looking statements.

Click here to connect with New Age Metals Inc. (TSXV:NAM; OTCQB:NMTLF; FSE:P7J.F) for an Investor Presentation.

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