New Dimension Signs Binding Letter of Intent with Cerrado Gold for Sale of Minera Mariana Argentina S.A.
New Dimension Signs Binding Letter of Intent with Cerrado Gold for Sale of
Minera Mariana Argentina S.A.
TSX-V: NDR
VANCOUVER, BC
,
Oct. 28, 2020
/CNW/ - New Dimension Resources Ltd. (TSXV:NDR) (the "Company", New Dimension" or "NDR") is pleased to announce that
it has entered in to a Binding Letter of Intent ("LOI") with Cerrado Gold Inc. ("Cerrado") for the sale of its 100% interest in its Argentine subsidiary,
Minera
Mariana Argentina S.A
. ("Minera Mariana")(the "Transaction").
Minera Mariana
is owner of the Las Calandrias and Los Cisnes gold-silver projects, in addition to
an extensive portfolio of exploration concessions in the Eastern Deseado Massif,
Santa Cruz Province
, southern Argentina. The transaction is subject to
successful completion of due diligence and is expected to close on or around
November 30
, 2020.
Cerrado is owner and operator of the Minera Don Nicolas ("Don Nicolas") gold mine, a 1,000 tonne per day gold mining/processing facility located immediately
adjacent to
Minera Mariana's
Las Calandrias project.
Highlights of the Transaction
New Dimension will receive
USD 50,000
in cash within 10 days of signing of the Binding LOI.
New Dimension will receive
CAD 2.25 million
in Cerrado shares. The exact price and number of shares to be issued will be calculated based on the price of
Cerrado's shares as determined in anticipation of a concurrent financing with its planned listing on either the Toronto Stock Exchange or TSX Venture
Exchange (expected to be completed by
December 31, 2020
).
New Dimension will retain indirect exposure to future exploration and operational success at both Las Calandrias and Don Nicolas through its shareholding in
Cerrado.
Eric Roth
, New Dimension's President and CEO, commented today: "I am very pleased to be announcing today the sale of our Argentine subsidiary,
Minera
Mariana
, to Cerrado Gold. This agreement will allow the Las Calandrias project, in particular, to benefit greatly from the exploration and operational expertise of
the Don Nicolas team, with its geographical proximity to
Don Nicolas'
current mining/processing operations at Paloma and Martinetas also providing Las
Calandrias with synergies for potential future development.
With the divestiture of
Minera Mariana
, the Company will now be able to focus its activities on advancing its recently acquired Scandinavian projects - the high-
grade copper-rich Løkken and Kjøli massive sulfide projects in
Norway
, and the Southern Gold Line orogenic gold project in
Sweden
- as well as its two Canadian
high-grade gold Joint Ventures - Domain and
Savant Lake
. With the Company's renewed focus on a quality mix of high-grade gold and copper projects in
favourable jurisdictions within the northern hemisphere, I look forward to keeping the market informed as we advance our projects towards drilling."
Las Calandrias Project Overview
Las Calandrias is an advanced-stage gold-silver project located immediately adjacent to
Don Nicolas'
mining operations at Paloma and Martinetas. The project
currently contains two main mineralized zones – i) the bulk-tonnage, dome-hosted Calandria Sur deposit and ii) the high-grade Calandria Norte and Morena
vein/breccia zones. The Calandria Sur zone is located along the southern limit of the Company's claim block and extends across this boundary into
Don Nicolas'
claim block (where it is known as the Escondido mineralized zone). The high-grade Calandria Norte and Morena gold-silver vein/breccias lie along NE-trending
structures in the central portion of the Las Calandrias claim block and were the focus of the Company's most-recent (2018) drilling. Further potential still exists to
expand the known mineralized zones at Calandria Norte, Morena, and the sub-parallel Despreciada/Nido vein zones through drilling.
Qualified Persons and Disclosure Statement
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101, and approved by
Eric
Roth
, the Company's President & CEO, a director and a Qualified Person under NI 43-101. Mr. Roth holds a Ph.D. in Economic Geology from the University of
Western Australia
, is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM), and is a Fellow of the Society of Economic Geologists (SEG). Mr.
Roth has over 25 years of experience in international minerals exploration and mining project evaluation.
On Behalf of the Board of New Dimension Resources Ltd.
"Eric Roth"
__________________________
Eric Roth
, Ph.D., FAusIMM
President & CEO
About New Dimension Resources Ltd
New Dimension is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable jurisdictions with a focus on high-
grade gold and base metal deposits. The Company's precious metals focus is on the discovery through exploration of high-grade gold deposits on its recently
optioned Southern Gold Line Project (
Sweden
), as well as on its active Joint Ventures with Ethos Gold Corp. at Savant
Lake (Ontario
) and Yamana Gold Inc. at
Domain (
Manitoba
), and the divestiture of
Sierra Blanca
(Argentina) to Austral Gold Ltd. The Company's base metals focus is on the discovery of high-grade
copper-rich VMS deposits on the district-scale land positions around the past-producing Løkken and Kjøli mines in central
Norway
. Field activities are underway on
all projects, with the primary focus being to advance priority targets to drilling.
Cautionary Notes and Forward-looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically
identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future
events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of New Dimension,
including the timing, completion of and results from the exploration and drill programs described in this release. Although the Company believes that such
statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain
assumptions and analyses made by New Dimension in light of their experience and perception of historical trends, current conditions and expected future
developments, as well as other factors management believes are appropriate in the circumstances. This information, however, is subject to a variety of risks
and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.
Important factors that could cause actual results to differ from this forward-looking information include those described under the heading "Risks and
Uncertainties" in New Dimension's most recently filed MD&A. New Dimension does not intend, and expressly disclaims any obligation to, update or revise the
forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking
information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy
of this release.
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For further information:
New Dimension Contacts: Eric Roth, Email: [email protected]; Karen Davies, +1 604-314-2662
CO: New Dimension Resources Ltd.
CNW 09:30e 28-OCT-20