Altair Signs an Agreement to Acquire TWO GOLD Producing Properties IN Kazakhstan with Total Historic Indicated Resources of 947,900 OZ of GOLD, and Inferred Resources of 892,000 OZ of GOLD
Altair Resources Inc.
#1305 – 1090 W. Georgia Street, Vancouver, BC V6E 3V7 Canada
ALTAIR SIGNS AN AGREEMENT TO ACQUIRE TWO GOLD PRODUCING
PROPERTIES IN KAZAKHSTAN WITH TOTAL HISTORIC
INDICATED RESOURCES OF 947,900 OZ OF GOLD,
AND INFERRED RESOURCES OF 892,000 OZ OF GOLD
July 12th , 2021
Vancouver, British Columbia – July12th, 2021: ALTAIR RESOURCES INC. (“ALTAIR” or
the Company”) (TSX -V: AVX; Germany FRA: 90A; ISIN: CA02137W2004; WKN: WKN
A2ALMP) Mr. George S. Young, Chairman & CEO is pleased to announce the signing of a binding
agreement (“Agreement”) for the acquisition of two gold producing properties in Eastern and
Central Kazakhstan containing a total historic indicated resource of 947,900 oz of gold, open pit
and underground, and a total historic inferred resource of 892,600 oz of gold , open pit and
underground.
Current aggregate gold production at the two properties is approximately 21,000 ounces of
gold per year from the oxide zones of each property.
The reader is cautioned that historical gold resources cannot be relied upon as they need to be
confirmed by a Qualified Person through additional sampling, analysis and possibly additional
drilling. A National Instrument 43 -101 Mineral Estimate Repo rt and a Preliminary Economic
Assessment (“PEA”) on the properties has been commissioned by the company to qualify the
Historical Estimate and profile the property characteristics, in preparation for the commissioning
of a feasibility study on the expansion of the operations.
The properties will be owned 100% by Altair upon fulfillment of the acquisition payments to be
made following the completion of Due Diligence and following the completion of each of the first
two years of ongoing operation.
Additionally, a part and parcel financing will be completed in order to fund initial acquisition costs
of the properties. Altair will issue 20,000,000 units at $0.11 per unit with one warrant per unit at an
exercise price $0.18 for a term of one year. This fina ncing replaces the $0.05 per unit private
placement announced on May 26, 2021.
Highlights of the Eastern Kazakhstan property (the “A” gold deposit and the nearby high purity
quartz, “B” gold deposit, include the following:
• A December 2020 SRK* “MRE“ JORC report for the “A” deposit showed a total indicated
resource of 759,000 oz and a total inferred resource of 807,000 oz of gold, open pit and
underground, plus two higher grade shoots with 3g/t Au material, using a 0.3g/t COG.
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Altair Resources Inc.
#1305 – 1090 W. Georgia Street, Vancouver, BC V6E 3V7 Canada
• The May 2021 SRK* “MRE“ JORC report for the “B” deposit showed a total indicated
resource of 188,900 oz and a total inferred resource of 85,600 oz of gold, open pit and
underground with an average grade of 1.5g/t Au material, using a 0.3g/t COG.
*The SRK reports were prepared for the vendor of the properties, who has consented to this reference to these reports
in this press release.
• Current oxide mining is being carried out on the “A” deposit to 40m, which is being
processed using conventional heap leach technology.
• Current annual production is 12,000 oz Au, which may be increased to 30,000 oz Au p a
with mining of additional oxide deposits in the “A” license.
• The Company has commissioned a NI 43-101 “PEA” for the “A” & “B” properties.
• Exploration potential in the “A” license is very high, with potential for adding of additional
ounces at both target areas in strong alteration zones along major controlling structures
previously delineated and ready to be soil sampled and drilled.
Highlights of the Central Kazakhstan property (the “C” gold deposit), include the following:
• The “C” deposit has an exploration target of 480,000 to 500,000 ounces of gold with a grade
of between 1.4g/t and 1.45g/t @ 0.3g/t COG. This is not included in the above stated
Indicated and Inferred categories . Altair intends to conduct a drilling program to bring
this target to NI 43-101 compliant status.
• “C” is an operating oxide heap leach Au mine, producing 9,000 oz Au pa.
• The mineralization being pro cessed at “C” includes significant free gold with excellent
metallurgical properties, currently yielding 70% Au recovery in current test operations in
the oxide zone using a gravity circuit, in addition to the heap leach processing.
• Exploration potential at “C” is believed to be excellent, as the existing initial test mining
operations are only a small part of a much larger porphyry stockwork system, with Au & Cu
geochemical anomalies defined in 2020, east of both existing open cut pi ts covering areas
of 1000m x 800m each, ready to be drill tested to increase the oxide Au resource.
• A large target exists for a 3D IP survey to locate the deeper Cu -Au porphyry stockwork
mineralization at depth, for a potential future open cut sulphide operation.
QA/QC work is incomplete for the sulphide zone at “C” and therefore additional drilling must be
completed to get to a NI 43 -101 compliant resource in that zone. However, significant
metallurgical testing completed on the sulphide ore suggest s to Altair that there is a clear path to
production.
Both the Eastern and Central Kazakhstan properties are currently recovering gold using heap leach
technology, with gravity recovery also occurring on the Central property. The acquisition includes
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Altair Resources Inc.
#1305 – 1090 W. Georgia Street, Vancouver, BC V6E 3V7 Canada
the infrastructure and capital facilities of the two gold operations that are both currently delivering
gold Doré bars from their respective oxide zones through heap leaching, gravity concentration, and
further processing.
All gold production is sold at t he LBMA spot price to Samyruk Kazyna, the Sovereign Wealth
Fund of Kazakhstan.
Altair’s assessment, through its technical consultant, Core Mining Group Ltd, is that these projects
have the potential to generate robust cash flows with additional equipment upgrades, development
of the sulphide resources, and Western know-how.
Under the terms of the Agreement, the total consideration consists of:
• USD 75 million on the execution of the proposed transaction, at which time 70% of the
ownership shares shall be transferred to Altair Resources Inc.
• USD 15.5 million one year from the execution of the proposed transaction, at which time a
further 15% of the ownership shares shall be transferred to Altair Resources Inc.
• USD 15.5 million two years from t he execution of the proposed transaction, at which time
the remaining ownership shares shall be transferred to Altair Resources Inc.
The in-situ acquisition cost of this gold producing asset is $58 per ounce.
Altair Resources Inc. is in negotiations wi th a London Private Equity firm for debt financing and
has commissioned a NI 43 -101 PEA on the “A”, “B” and “C” deposits that is expected to be
completed during Q3 2021.
Altair has identified a legal team in Kazakhstan for the legal due diligence, and along with its
technical and financial teams, a full due diligence investigation will commence immediately.
The transaction is expected to close on October 1, 2021.
Altair, in conjunction with Core Mining Group Ltd, anticipates achieving the following key metrics:
• Average production of 81,800 ozs per year.
• Year 1 & 2: 36,400 ozs per year.
• Year 3: 80,700 ozs per year.
• Year 4 to 8: 119,700 ozs per year.
• Year 8 onwards: 65,600 ozs.
• AISC: $ 1,140 per oz.
Mr. George S. Young, Chairman & CEO stated, “We are extremely pleased to have entered into
this Binding Agreement to acquire two producing gold mines in Kazakhstan with such a sizeable
resource base. We are advancing in our discussions with providers of strategic acquisition capital
and potential partners for the acquisition and the further development of the sulphide resources,
followed by the expansion of the operations. Our plan, along with the deve lopment of our recently
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Altair Resources Inc.
#1305 – 1090 W. Georgia Street, Vancouver, BC V6E 3V7 Canada
announced Burkina Faso project, is to implement an aggressive acquisition and development
strategy to transform Altair from a junior exploration company to a mid -tier mining company as
rapidly as possible.”
An arm’s length finder’s fee may be paid in connection with the transaction.
Information of a technical and scientific nature that forms the basis of the disclosure in this press
release has been prepared and approved by Dr. Stewart A Jackson, a Qualified Person, under
National Instrument 43-101, and independent consultant of Altair Resources Inc.
About Altair Resources Inc.
Altair is a gold and precious metals exploration company. Altair recently announced the signing
of a binding agreement for the purchase of the Marbera 2 permits in Burkina Faso, hosting historic
resources of over 1.3 million ounces of gold as shown by ove r 387,000 meters of drilling and
294,000 samples.
Altair also has rights to acquire a 65-per-cent interest in the Simon gold and silver property located
in the state of Nevada. A past producer, the Simon property presents an excellent opportunity for
adding value, employing low -cost exploration activities to identify prime drilling sites in six
anomalous zones previously identified with gold, silver and copper mineralization. The Simon
property lies within the region that hosts the prolific Tonopah distr ict, the Round Mountain gold
mine and numerous other successful mining projects.
Altair is also continuing with its consideration and negotiations on other properties. The company
is evaluating the potential to acquire producing precious-metal and non-ferrous metal opportunities
in North and South America and Africa, in addition to Kazakhstan and Central Asia.
For further information:
George S. Young
Chairman, CEO, Altair Resources Inc.
+1 (806) 886- 3317
[email protected], www.altairresources.com
Neither 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.
Forward-Looking Statements:
This press release contains forward -looking statements with respect to the Company. By their
nature, forward-looking statements are subject to a variety of factors that could cause actual results
to differ materially from the results suggested by the forward -looking statements. In addition, the
forward-looking statements require management to make assumptions and are subject to inherent
risks and uncertainties. There is significant risk that the forward-looking statements will not prove
to be accurate, that the management’s assumptions may not be correct and that actual results may
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Altair Resources Inc.
#1305 – 1090 W. Georgia Street, Vancouver, BC V6E 3V7 Canada
differ materially from such forward -looking statements. Accordingly, readers should not place
undue reliance on the forward-looking statements.
Generally forward -looking statements can be identified by the use of terminology such as
“anticipate”, “will”, “expect”, “may”, “continue”, “could”, “estimate”, “forecast”, “plan”,
“potential” and similar expressions. Forward -looking s tatements contained in this press release
may include, but are not limited to, the completion of the private placement and the Company
receiving regulatory approval to the partial revocation order. These forward-looking statements are
based on a number of assumptions which may prove to be incorrect including, but not limited to,
the Company receiving regulatory approval to the private placement and the partial revocation
order application.
The forward-looking statements contained in this press release are made as of the date hereof or the
dates specifically referenced in this press release, where applicable. Except as required by law, the
Company does not undertake any obligation to update p ublicly or to revise any forward -looking
statements that are contained or incorporated in this press release. All forward -looking statements
contained in this press release are expressly qualified by this cautionary statement.