Braveheart Resources Enters Into Letter of Intent for Purchase of Thierry Mine Project
Braveheart Resources Enters Into Letter of
Intent for Purchase of Thierry Mine Project
Calgary, Alberta--(Newsfile Corp. - August 18, 2020) - Braveheart Resources Inc.
(TSXV: BHT)
(OTCQB: RIINF)
("
Braveheart
" or the "
Company
") is pleased to announce that it has entered into a
letter of intent ("LOI") with Cadillac Ventures Inc.
(TSXV: CDC) (OTC: CADIF) ("Cadillac")
for the
purchase of a 100% interest in the Thierry Mine Project ("
Thierry
") near Pickle Lake , Ontario.
Under the terms of the LOI, Braveheart will acquire Thierry from Cadillac for the following consideration:
(i) $300,000 in cash; (ii) 13,500,000 common shares of Braveheart; and, (iii) a 2% net smelter royalty
("NSR") to be retained by Cadillac of which 1% of the NSR can be purchased by Braveheart for
$1,000,000.
Closing of the purchase of Thierry remains subject to the parties entering into a definitive
purchase and sale agreement (the "Definitive Agreement"), satisfactory completion of due diligence by
Braveheart and the approval of the TSX Venture Exchange. The intention of Braveheart and Cadillac is
to finalize the Definitive Agreement, which will include customary terms and conditions including
representations and warranties, and close the purchase of Thierry by Braveheart within the next 30 days.
The Thierry copper-nickel platinum group elements ("PGE") deposit was discovered by Union Miniere
Exploration and Mining ("UMEX") of Belgium in 1969 and mined through open pit and underground
workings between 1976 and 1982.
The mine was shut down due to low commodity prices.
Based on
historical records UMEX milled 5,800,000 short tons of copper and nickel mineralized material from the
deposit with an average grade of 1.13% Cu and 0.14% Ni.
In addition, precious metals payables
included 47,000 ounces of palladium, 17,000 ounces of gold, 17,500 ounces of platinum and 900,000
ounces of silver.
The most recent independent National Instrument 43-101 ("NI 43-101") Technical
Report and Resource Estimate was completed by P&E Mining Consultants Inc. in February 2012 (the
"2012 Thierry Technical Report") and is available on Cadillac's SEDAR profile at
www.sedar.com
.
The
2012 Thierry Technical Report estimates a measured and indicated resource at the Thierry underground
of 8,815,000 tonnes at a grade of 1.66% Cu and 0.19% Ni.
Additional measured and indicated metal
values include 0.13 gpt Pd, 0.05 gpt Au, 0.04 gpt Pt and 4.0 gpt Ag.
There are a further 14,922,000
tonnes in an inferred category at a grade of 1.64% Cu and 0.16% Ni.
Additional inferred metal values
include 0.21 gpt Pd, 0.10 gpt Au, 0.07 gpt Pt and 6.4 gpt Ag.
The Thierry project also contains a near
surface inferred resource at the K1-1 deposit.
The K1-1 deposit contains 53,614,000 tonnes at a grade
of 0.38% Cu and 0.10% Ni.
Additional inferred metal values include 0.14 gpt Pd, 0.03 gpt Au, 0.05 gpt
Pt and 1.83 gpt Ag.
The reader is cautioned that a Qualified Person has not done sufficient work to
classify the mineral resources stated in the 2012 Thierry Technical Report as current resources.
Braveheart is not treating this historical estimate as current mineral resources. While this estimate was
prepared in accordance with NI 43-101 and CIM 2005 in effect at the time, there is no guarantee that it
would be consistent with current standards and it should not be regarded as such. Braveheart has not
undertaken any independent verification of the data upon which the historical estimates are based. The
historical estimate is considered relevant to assess the mineralization potential of the property.
The Thierry Mine Project is located approximately 15 km west of Pickle Lake, Ontario and accessible on
a year-round basis by paved and all-weather roads.
The property is approximately 4,700 hectares in
size.
There is a municipal airport and nearby rail system and the provincial power grid is within eight km
of the mine.
The underground infrastructure includes a three-compartment shaft, production decline to
520 metres below surface and lateral developments on three levels.
The underground workings are
currently flooded.
Norman Brewster, President and CEO of Cadillac stated: "We believe the proposed transaction is a
compelling one to Cadillac and its shareholders, providing a significant cash injection, continued
exposure and upside to any success on Thierry and exposure to a broader property package through the
proposed proforma ownership in Braveheart.
The combination of Thierry with Braveheart's assets is a
natural one, and will create a meaningful consolidated and highly prospective land package and the
ability to accelerate unlocking value".
Ian Berzins, President and CEO of Braveheart commented: "The proposed acquisition of the Thierry
Mine Project represents a significant next step in the growth of our Company.
The project is very
complimentary to our Bull River underground copper, gold and silver mine in British Columbia and
provides the Company with project and geographic diversification.
Braveheart is focused on acquiring
and developing past-producing assets, in favourable Canadian jurisdictions with existing mineral
resources in place.
We were particularly drawn to this opportunity because of the significant
infrastructure already in place and the proximity to roads, grid power and established mining
communities".
Qualified person
Braveheart's disclosure of a technical or scientific nature in this news release has been reviewed and
approved by Ian Berzins P.Eng., who serves as president, chief executive officer and a director of the
Company and is a qualified person under the definition of National Instrument 43-101.
About Braveheart Resources Inc.
Braveheart is a Canadian based junior mining company focused on building shareholder value through
exploration and development in the favourable and proven mining jurisdictions of the East and West
Kootenays of British Columbia. Braveheart's main asset is the Bull River Mine project which has a
current mineral resource containing copper, gold and silver. The property is fully developed with 21,000
metres of underground developments in terms of ramps, raises and drifting on mineralized structures on
seven levels. The surface infrastructure includes a 750 tonne per day conventional mill with adjoining
crushing facilities as well as offices and mine maintenance facilities. The property is connected to grid
power and there is year-round access to the site by paved and all-weather roads.
Contact Information
Braveheart Resources Inc.
Ian Berzins
President & Chief Executive Officer
403-512-8202
Website:
www.braveheartresources.com
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under
applicable Canadian securities legislation. Forward-looking information includes, but is not limited to,
statements about completion of the purchase of the Thierry project, strategic plans, future work
programs and objectives and expected results from such work programs. Forward-looking information
necessarily involve known and unknown risks, including, without limitation: Braveheart and Cadillac
entering into the Definitive Agreement; risks associated with general economic conditions; inability to
access sufficient capital from internal and external sources, and/or inability to access sufficient capital
on favourable terms; and other risks.
Forward-looking information is 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 information and the risks identified in the Company's continuous
disclosure record. There can be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on forward-looking information. All forward-
looking information contained in this news release is given as of the date hereof and is based upon
the opinions and estimates of management and information available to management as at the date
hereof. The Company disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise, except as required by
law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new
release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/61998