Metallic Minerals Announces $6.3 Million Strategic Equity Investment by Newcrest Mining
TSX.V: MMG | OTCQB: MMNGF
Metallic Minerals Announces $6.3 Million Strategic Equity Investment by Newcrest Mining
May 10, 2023 – Vancouver, BC – Metallic Minerals Corp. (TSX.V: MMG; OTCQB: MMNGF) (“Metallic Minerals” or the
“Company”) is pleased to announce a strategic equity investment by a wholly-owned subsidiary of Newcrest Mining
Limited (“Newcrest”) in the form of a non-brokered private placement, with the goal of advancing the Company’s La
Plata copper-silver-gold-platinum group element alkalic porphyry project in Colorado, USA.
Pursuant to the private placement, Newcrest will complete a financing of $6.34 million, consisting of 15,838,593 units
of Metallic Minerals at a price of $0.40 per unit , with each unit comprising one common share and 0.75 of a common
share purchase warrant . This represents a 13% premium to the 20 -day volume weighted average price of Metallic
Minerals’ shares on the TSX-V on May 9, 2023. Each full warrant shall entitle Newcrest to purchase one common share
at an exercise price of $0.55, providing $6.5 million in additional funding, if exercised. The warrants shall be exercisable
for three years from the date of issue and contain a customary acceleration provision , which shall be effective if the
common shares trade for a period of 20 consecutive trading days at or above $0.825 on the TSX-V.
Following closing of the investment, Newcrest will hold 9.5% of the issued and outstanding common shares of Metallic
Minerals on a non-diluted basis and, including the warrants, 15.5% of the issued and outstanding common shares on a
partially diluted basis.
Metallic Minerals CEO and Chairman, Greg Johnson, stated, “As an industry leader with extensive expertise in precious
metals rich, alkalic porphyry systems, Newcrest was quick to recognize the geologic significance of the drill results from
our 2022 campaign at La Plata . We are very pleased to welcome them as a new major shareholder. Newcrest’s
investment is a strong endorsement of the technical merits and potential of the project and a vote of confidence in our
experienced team. This funding will enable us to fast-track our planned expansion drilling to follow-up the success from
2022. This year is shaping up to be one of the most exciting in our company’s history, with an updated resource estimate
in progress at La Plata and an inaugural resource at our Keno Silver project also underway.”
Metallic Minerals President, Scott Petsel, stated, “This is a transformational period for Metallic Minerals and the La
Plata project. Newcrest brings key, relevant exploration and operational experience and success in deposits of very
similar character to that of La Plata, particularly their Red Chris and Cadia -Ridgeway operations. Our technical team
has developed a follow-up drill program for La Plata that we expect can rapidly begin to define the extent of the high -
grade mineralization, which remains completely open to expansion from the discovery drilling in 2022. Hole 22-04
intersected 816 meters of continuous porphyry mineralization and ended in spectacular copper and precious minerals
grades. We are eager to discover the extent to which that high-grade mineralization continues laterally and to depth
and anticipate this new drilling will have a positive impact on the overall grade and value of the deposit . Our team is
very much looking forward to working with Newcrest to advance these common exploration and development goals.”
Fraser MacCorquodale, Newcrest’s GM Exploration, stated, “We are excited to become a cornerstone investor in
Metallic Minerals and to be able to contribute towards this promising copper and precious metal project in the United
States. We look forward to collaborating with the experienced management team at Metallic Minerals to leverage our
combined skills.”
In connection with the private placement, Metallic Minerals and Newcrest have entered into an investor rights
agreement, pursuant to which Newcrest will be entitled to certain customary rights including participation in future
equity issuances and a right to maintain its pro -rata position in the Company . Newcrest and the Company have also
agreed to certain customary standstill and transfer restrictions.
In addition, a technical committee will be formed with representatives from Metallic and Newcrest, providing access to
Newcrest’s substantial technical expertise in similar alkalic porphyry systems and underground bulk -tonnage, block-
cave mining operations. Newcrest shall also have a right to appoint a director to Metallic Minerals’ board, upon exercise
of the private placement warrants, if they hold at least 13% of the issued and outstanding shares of the Company.
Live Webinar
Metallic Minerals will be hosting a live webinar with guest, Byron King, on Thursday, May 11 at 10am PT | 1pm ET to
discuss the outlook for battery and precious metals and the importance of exploration to be able to deliver the
necessary critical minerals for the decade ahead, along with an overview on exploration plans for Metallic Minerals in
2023. To register, click here.
2
Net proc eeds of the private placement are intended to be used for exploration and development activities at the
Company's La Plata project, future exploration and development activities, working capital and general and
administrative expenses.
The private placement is expected to close, subject to customary conditions, upon acceptance by the TSX Venture
Exchange. The common shares issued pursuant to the private placement will be subject to a four -month hold period
from the date of issuance in accordance with applicable securities laws. No commissions or finder fees are payable in
connection with the private placement.
This press release is not an offer or a soli citation of an offer of securities for sale in the United States of America. The
common shares of Metallic Minerals Corp. have not been and will not be registered under the U.S. Securities Act of
1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption
from registration.
About Newcrest Mining
Newcrest Mining Limited (ASX, TSX, PNGX: NCM) is one of the world’s largest gold mining companies with headquarters
in Melbourne, Australia and operating mines in Australia, Canada and Papua New Guinea. Newcrest is a technical
industry leader, with particular expertise in exploration, deep underground block caving and metallurgical processing.
Newcrest is committed to creating a work environment where everyone can go home safe and healthy every day, and
where everyone actively contributes to this outcome; operating and developing mines in line with strong
environmental, social and governance practices; developing a diverse workforce; and developing and maintaining
strong relationships with communities and governments.
About Metallic Minerals
Metallic Minerals Corp. is a leading exploration and development stage company focused on copper, silver, gold and
other critical minerals in the La Plata mining district in Colorado, and silver and gold in the high-grade Keno Hill and
Klondike districts of the Yukon. Our objective is to create shareholder value through a systematic, entrepreneurial
approach to making exploration discoveries, growing resources, and advancing projects toward development.
At the Company’s La Plata project in southwestern Colorado the 2022 inaugural NI 43-101 mineral resource estimate
identified a significant porphyry copper-silver resource containing 889 Mlbs copper and 15 Moz of silver. Results from
2022 expansion drilling intercepted the longest and highest-grade interval ever encountered at La Plata and one of the
top intersections for any North American copper project in the past several years. An updated NI 43-101 resource
estimate for the La Plata project incorporating these results is expected in Q2 2023.
In Canada’s Yukon Territory, Metallic Minerals has consolidated the second-largest land position in the historic high-
grade Keno Hill silver district, directly adjacent to Hecla Mining’s operations, with more than 300 million ounces of high-
grade silver in past production and current M&I resources. Hecla Mining Company, the largest primary silver producer
in the USA and third largest in the world, completed the acquisition of Alexco Resources and their Keno Hill operations
in September 2022. Hecla is targeting to start production at the Keno Hill operations by Q3 2023. Metallic is anticipating
the announcement of inaugural mineral resource estimate at Keno Silver in the second half of 2023.
Metallic Minerals is also one of the largest holders of alluvial gold claims in the Yukon and is building a production
royalty business by partnering with experienced mining operators, including Parker Schnabel of Little Flake Mining from
the hit television show Gold Rush on the Discovery Channel.
All of the districts in which Metallic Minerals operates have seen significant mineral production and have existing
infrastructure, including power and road access. Metallic Minerals is led by a team with a track record of discovery and
exploration success on several major precious and base metal deposits in the region, as well as having large-scale
development, permitting and project financing expertise. The Metallic Minerals team has been recognized for its
environmental stewardship practices and is committed to responsible and sustainable resource development.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Website: www.mmgsilver.com Phone: 604-629-7800
Email: [email protected] Toll Free: 1-888-570-4420
3
Forward-Looking Statements
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than
statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation
of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results,
the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal
prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks,
reclamation, title, statements about expected results of operations, royalties, cash flows, financial position and future dividends as well as
financial position, prospects, and future plans and objectives of the Company are forward-looking statements that involve various risks and
uncertainties. Although Metallic Minerals believes the expectations expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from
those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors
that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals,
unsuccessful exploration results, unsuccessrul operations, changes in project parameters as plans continue to be refined, results of future
resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business
conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis,
accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on
operations and costs to remedy same and other exploration or other risks detailed herein and from time to time in the filings made by the
Company with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral exploration, development of mines and mining operations is an inherently risky business. Accordingly, the actual
events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the
risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the 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.