Mink Ventures Corporation (TSXV: MINK.P) ("Mink" or the "Company") is pleased to announce that it has entered into a Letter of Intent dated June 27, 2022 ("LOI") with Voltage Metals Corp. (CSE: VOLT) ("Voltage") with respect to an option to acquire an 80% interest in the Montcalm Ni-Cu-Co project (the "Transaction") which covers 38.8 sq. km and is located adjacent to Glencore's past producing Montcalm Mine which had historical production of approximately 3.9 million tonnes grading 1.25% Ni, 0.67% Cu and 0.051% Co (Ontario Geological Survey, Atkinson, 2011) The Montcalm project is located 60 km northwest of Timmins, Ontario and has excellent access and infrastructure.
Terms of the Option:
Pursuant to the terms of the LOI, and subject to entering into a definitive agreement (the "Transaction Agreement"), Mink will have the exclusive option to acquire an 80% interest in the Montcalm project from Voltage by making the following cash payments, share issuances and minimum work expenditures:
- Pay $25,000 to Voltage on or before the date of completion of the Qualifying Transaction (the "Effective Date");
- Issue 800,000 common shares in the capital of Mink to Voltage on or immediately prior to the Effective Date;
- Incur a minimum of $300,000 in work expenditures on the Property on or before April 10, 2023
- Pay $25,000 to Voltage on or before the first anniversary of the Effective Date;
- Issue 800,000 common shares in the capital of Mink to Voltage on or before the first anniversary of the Effective Date; and
- Incur a minimum of $300,000 in work expenditures on the Property on or before April 10, 2024.
Mink may accelerate and carry forward any of the cash payments or work expenditures. Upon full exercise of the option, Mink shall assume responsibility for payment of the aggregate 1.25% net smelter returns royalty to the extent of its relative ownership interest in the Montcalm project.
Mink proposes to complete a private placement raising not less than $1,000,000 (the "Private Placement") to fund the phase one work program on the Montcalm project and general and administrative operating expenses. Mink does not plan to make any changes to its board of directors in connection with the Transaction.
The Transaction, when completed, may be considered to be Mink's Qualifying Transaction for the purposes of the TSX Venture Exchange Inc. (the "Exchange"). The Company has requested its common shares to be halted by the Exchange pending review of the materials for the Transaction. Trading in the common shares of the Company is expected to remain halted until the closing or termination of the Transaction.
Mink, a capital pool company within the meanings of the policies of the Exchange, does not have any operations and has no assets other than cash. Mink's business is to identify and evaluate businesses and assets with a view to completing a Qualifying Transaction under the policies of the Exchange.
Completion of the Transaction is subject to a number of conditions, including but not limited to, successful negotiation of the Transaction Agreement, Exchange acceptance, and the completion of the Private Placement. There can be no assurance that the Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
This is an initial press release. The Company intends to issue a further press release once it has entered into the Transaction Agreement.
The Exchange has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.
Highlights of the Montcalm Project:
- 38.8 sq. km claim block adjacent to Montcalm Ni-Cu-Co Mine (historical production of approximately 3.9 million tonnes grading 1.25% Ni, 0.67% Cu and 0.051% Co (Ontario Geological Survey, Atkinson, 2011) with mine host geology (Montcalm Gabbro Complex "MGC") extending on to Mink's property.
- Mink's holdings cover ~ 66% of the gabbro zone component of the MGC shown in blue in the accompanying Figure 2. The gabbro zone is the primary host of the Montcalm Mine. Other significant features include the megabreccia zone known to host anomalous nickel and copper mineralization designated Unit 4 in Figure 2.
- There are a number of drill ready targets to be tested.
- Some of the higher priority VTEM targets and ground IP targets that remain to be tested are within or proximal to a prospective target area designated the "Hook Zone" located within the gabbro zone of MGC.
- A large portion of the southern section of the property has not been tested with airborne VTEM, which is capable of detecting deeper conductive zones between 350-400 meters below surface, well beyond the +- 200-meter capability of historical surveys. Known deposits at the adjacent mine were present well below the 200-meter elevation.
Future Exploration Plans which are subject to the completion and recommendations of an NI 43-101 report, which is currently underway, include:
- An airborne VTEM survey and airborne gravity survey in the southern part of the property to complement existing surveys;
- Maxwell Plate analysis of all VTEM data;
- Further ground induced polarization (IP) surveys over priority Hook Target VTEM anomalies and magnetic anomalies;
- Ground prospecting and sampling;
- Secure permits for a diamond drill program
Mr. Kevin Filo, P.Geo. (Ontario), is a qualified person within the meaning of National Instrument 43-101. Mr. Filo approved the technical data disclosed in this release.
Figure 1. Property Location
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About Mink Ventures Corporation:
Mink Ventures Corporation is a Capital Pool Company (CPC) that is focused on identifying and evaluating businesses and assets with a view to completing a Qualifying Transaction (QT). The Company has 8,367,500 shares outstanding.
About Voltage Metals Corp:
Voltage is a mineral exploration company with a highly experienced team focused on nickel and other battery metals exploration in the Canadian provinces of Ontario and Newfoundland. The Company looks to create shareholder value by aggregating and exploring projects that possess sound geology and brand-new discovery potential. Voltage has a deep roster of management and key stakeholders, who are expert in the essential resource trifecta of exploration, operations and finance.
Forward Looking Statements
This press release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future business and operations of Mink. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, general business, economic, competitive, political and social uncertainties; and the delay or failure to receive applicable Board or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. These forward-looking statements are made as of the date hereof and Mink disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/129344