Constantine Metals Resources (CEM-V) Sells Horseshoe Claims for Cdn$4.5 million plus Royalties
Nov 7, '16 - NR
Constantine Metal Resources is pleased to announce it has entered into a Property Purchase Agreement with Lake Shore Gold Corp. a wholly owned division of Tahoe Resources Inc. (THO-T), to sell certain of its mineral claims that are situated adjacent to Lake Shore’s Fenn-Gib gold project in Ontario. The Agreement does not include Constantine’s very high-grade past producing Munro Croesus Gold Property. Details of the Agreement include:
Constantine will receive Cdn$4.5 million cash for sale of 100% interest in its mineral claims known as the Horseshoe, Four Corners and the Meunier Add-on claims, totaling 1,326 ha.
Constantine will retain a 1% Net Smelter Return royalty (“NSR”) on the Horseshoe claims, as well as the right of first refusal on the NSR associated with the underlying property agreement.
Lake Shore will transfer to Constantine 100% interest in patented mining claim L39421 that is contiguous to Constantine’s Munro-Croesus claims; while Lake Shore will retain a 1.5% NSR.
Constantine will retain the rights to the NSR buy-down provisions associated with the underlying property agreements on all of the properties sold to Lake Shore,
The transaction is expected to close by November 30, 2016.
Constantine will continue to control a significant portfolio of high-quality Ontario gold projects, with a 7100 hectare land position that is 84% of the original pre-sale size. This includes the large, well located Golden Mile Property in Timmins and the past producing Munro Croesus Gold Property that is renowned for its exceptionally high-grade past production. The 21 claim unit Munro Croesus Gold Property is located approximately three thousand meters northwest and along trend of the Fenn-Gib gold deposit.
Wayne Livingstone, Chairman states, “Upon closing the transaction Constantine will have over $5 million in cash to co-fund the exploration development of our advanced flagship Palmer Copper-Zinc-Silver-Gold Project, in Southeast Alaska. The Palmer Project is being advanced in partnership with Dowa Metals & Mining Co., Ltd., which starting in 2017 will be funded 49% by Dowa and 51% by Constantine. We continue to control significant landholdings in Timmins including the past producing Munro Croesus Gold Property and retain exposure to the Fenn-Gib project through our NSR royalty rights on the properties being sold.”
About the Company
Constantine is a mineral exploration company led by a proven technical team with a focus on premier North American mining environments. The Company’s principal asset is the Palmer copper-zinc-silver-gold Project located in Southeast Alaska that is being advanced in partnership with Dowa Metals & Mining Co., Ltd. who can earn 49% in the project by making aggregate expenditures of US$22 million by December 31, 2016. About US$19.5 million has been spent to date, and any unspent funds at year end will be carried over into the Joint Venture.
Palmer is a resource expansion stage, high-grade volcanogenic massive sulphide (VMS) project, with an Inferred Mineral Resource of 8.1 million tonnes grading 1.41% copper, 5.25% zinc, 0.32 g/t gold and 31.7 g/t silver*. The project is located in a very accessible part of coastal Southeast Alaska, 60 kilometers by road from the year-round deep sea port of Haines. Mineralization at Palmer occurs within the same belt of rocks that is host to the Greens Creek mine, one of the world’s richest VMS deposits. There are at least 25 separate base metal and/or barite occurrences and prospects on the Palmer property, indicating the potential for discovery of multiple deposits. Constantine also controls a portfolio of quality gold projects in the Timmins camp Ontario and Yukon. Management is committed to providing shareholder value through discovery, meaningful community engagement, environmental stewardship, and responsible mineral exploration and development activities that support local jobs and businesses.
Please visit the Company’s website ( www.constantinemetals.com) for more detailed company and project information.
On Behalf of Constantine Metal Resources Ltd.
“Garfield MacVeigh”
President
For further information please contact:
Garfield MacVeigh, President or Darwin Green, VP Exploration
Phone: 604-629-2348. Email: info@constantinemetals.com |
