Clean Air Metals Announces Payment to Rio Tinto to Maintain Escape Lake Property Option
Clean Air Metals Announces Payment to Rio Tinto to Maintain Escape
Lake Property Option
THUNDER BAY, ON
,
Oct. 12, 2021
/CNW/ -
Clean Air Metals Inc. ("Clean Air Metals" or the "Company")
(TSXV: AIR) (FRA: CKU) (OTCQB:
CLRMF)
is pleased to announce that it has paid, for and on behalf of Benton Resources Inc. ("Benton") (TSX:V BEX), the sum of CAD
$1 Million
directly to Rio Tinto Exploration Canada Inc. ("RTEC") as Vendor, pursuant to the terms of the definitive option agreement (the "Option Agreement")
entered into between the Company and
Benton
in order to satisfy a payment requirement of
Benton
under its pre-existing option with RTEC (see
previous press release dated
January 6, 2020
and
May 14, 2020
). The Company acquired an option to acquire a 100% right, title and interest in and
to the Escape Lake Property (the "Escape Lake Property"), subject to a 1.0% net smelter return royalty to be retained by RTEC, from
Benton
under
the Option Agreement, with such option conditional on
Benton
exercising its pre-existing option to acquire the Escape Lake Property from RTEC and
under the Option Agreement, the Company has agreed to make all of the payments of
Benton
to RTEC that are required in order for
Benton
to
exercise the pre-existing option. Clean Air Metals agreed to pay to RTEC an aggregate of
C$6 million
in order for
Benton
to exercise the pre-existing
option,
C$3 million
of which was originally paid by
Benton
to RTEC on
October 9, 2019
, and
C$1 million
of which was paid by the Company to RTEC
on
October 9, 2020
. The remaining financial obligation to RTEC on behalf of
Benton
is
$1 million
due
October 9, 2022
.
In addition, pursuant to the Option Agreement outlining the terms of a definitive share purchase agreement dated
January 6, 2020
entered into
between the Company and Magma Metals Pty Ltd. ("Magma"), the Company completed the acquisition of 100% of Panoramic Resources Limited's
indirect subsidiary, Panoramic PGMs (
Canada
) Ltd. ("Pan PGMs"), which owns the Thunder Bay North Property (the "TBN Property"), hosting the
Current Lake Deposit. Pan PGM's is now a 100% wholly-owned subsidiary of Clean Air Metals. In consideration of the acquisition of Pan PGMs,
Clean Air Metals has also agreed to pay to Magma in equal installments over a three-year period, an aggregate of
C$9 million
,
C$4.5 million
of which
was paid on closing of the transaction on
May 14, 2020
, and
C$1.5 million
of which was paid on
May 14, 2021
. Two payments of
$1.5 million
remain
by
May 13, 2022
and
May 13, 2023
respectively.
The Escape Lake Property and the TBN Property are collectively referred to as the "TBN Project". The Company has the right to prepay all remaining
property payments at any time. There are no additional exploration or other spending commitments required to fully vest the Option Agreement.
Social Engagement
Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (
Canada
) Ltd. acknowledge that the Thunder Bay North Project is on the
traditional territories of the Fort William First Nation, Red Rock First Nation and Biinjitiwabik Zaaging Anishinabek. The parties together are the
Cooperating Participants in a Memorandum of Agreement dated January 9, 2021.
The Company is also in discussions with Red Sky Metis Independent Nation and the Metis Nation of Ontario and other non-proximate First Nation
communities. Woodland Heritage Northwest, a Metis-owned consultancy has been retained to conduct archaeological studies on the Thunder Bay
North Project and surrounding areas.
About Clean Air Metals Inc.
Clean Air Metals' flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near
the City of
Thunder Bay
, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Clean Air Metals project hosts the Current Lake Deposit
and magma conduit and the Company is actively exploring the Escape Lake Deposit, a twin structure to the Current Lake Deposit. Executive
Chairman Jim Gallagher and CEO Abraham Drost lead an experienced team of geologists and engineers who are using the Norilsk magma conduit
stratigraphic and mineral deposit model to guide ongoing exploration and development studies. As the former CEO of North American Palladium Ltd.
which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine
turnaround and creation of significant value for shareholders.
ON BEHALF OF THE BOARD OF DIRECTORS
"
Abraham Drost
"
Abraham Drost
, Chief Executive Officer of Clean Air Metals Inc.
Website:
www.cleanairmetals.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Cautionary Note
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking
statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet
determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or
performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of
risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without
limitation: political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks
related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies;
the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits;
risks related to the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses; results of technical studies,
benchmark reports, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations;
risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed
elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing
undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume
any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or
results could differ materially from the Company's expectations or projections.
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SOURCE
Clean Air Metals Inc.
View original content:
http://www.newswire.ca/en/releases/archive/October2021/12/c1282.html
%SEDAR: 00005465E
For further information:
Abraham Drost, Chief Executive Officer of Clean Air Metals Inc., Phone: 807-252-7800, Email: [email protected]
CO: Clean Air Metals Inc.
CNW 03:01e 12-OCT-21