Delrey Acquires Vanadium Assets Strengthens Portfolio Within Strategic Energy Metals Sector
#3707 – 1111 Alberni Street, Vancouver, BC, V6E 0A8
T: 604-620-8904
www.delreymetals.com
News Release
Delrey Acquires Vanadium Assets
Strengthens Portfolio Within Strategic Energy Metals Sector
December 13, 2018 CSE:DLRY | FSE:1OZ
DELREY METALS CORP. (CSE:DLRY, FSE:1OZ) (“Delrey” or the “Company”) is pleased to announce it has
entered into and closed a share purchase agreement dated December 12, 2018 (the “Share Purchase
Agreement”) with WEM Western Energy Metals Ltd., a private arm’s length corporation (“WEM”), to
acquire all the issued and outstanding share capital of WEM. Pursuant to the terms of the Share
Purchase Agreement, the Company issued 4,250,000 common shares of the Company (each, a “Share”).
All securities issued pursuant to the Share Purchase Agreement will be subject to a four month statutory
hold period.
WEM owns a 100 percent undivided, unencumbered legal and beneficial interest in both the Peneece
and the Blackie Vanadium properties (the “Properties”), located in British Columbia. The Properties
cover a total area of 2,714 hectares and host vanadium mineralization within large bodies of titaniferous
magnetite. Both properties are strategically located on tidewater, near to the small coastal cities of Port
Hardy (Peneece – 68km) and Prince Rupert (Blackie – 96km).
About the Peneece and Blackie Vanadium Projects:
The Properties are comprised of large‐scale ultramafic complexes which are intruded by gabbroic bodies
hosting iron‐titanium‐vanadium (Fe‐Ti‐V) mineralization within massive titaniferous magnetite. Two of
the gabbro bodies mapped on surface display lateral extents of 4.8km x 0.8km (Peneece) and 1.2km x
0.4km (Blackie).
Highlights:
- Historic samples collected from the gabbro on the Blackie assay up to 2.14% V205.1
- The Blackie property is located in a historic mining district. The adjacent past‐producing Yellow
Giant Mine, located less than 10km from the property and operated by Banks Island Gold as
recently as 2015 initially boasted a 414% IRR, showing the economic potential that exists on
Banks Island2.
- McDougall (1984), commented that, “an unusually strong and extensive magnetic anomaly
exists over the [Peneece Property]. It was, and still remains the largest flux gate magnetic
anomaly noted by the writer during many years of work on the West Coast. The size and overall
magnetic intensity of the anomaly were only exceeded at the multi‐billion ton “Klukwan
pyroxenite‐amphibolite” deposit in S.E. Alaska.”
#3707 – 1111 Alberni Street, Vancouver, BC, V6E 0A8
T: 604-620-8904
www.delreymetals.com
- Magnetic concentrate from limited float samples collected distal to the magnetic anomaly on
the Peneece Property assayed up to 0.59% V205.1
- Both properties are easily accessible by boat or helicopter and workable year round. Historic
barge‐logging was completed within and near to the project areas, which has created a network
of logging roads and allows for low cost exploration and development.
An initial work program including a high‐resolution airborne magnetic survey is planned in the near term
on both Properties.
Morgan Good, President and CEO of Delrey commented: “Delrey continues to rapidly grow its portfolio of
quality projects prospective for metals relative to the energy metals sector. Our team has been
evaluating properties, specifically vanadium rich properties, for quite some time now. While the notable
increase in the price of vanadium is still specific to steel alloys, we’re anticipating the demand to
continue growing and the prevalence of vanadium redox flow batteries is clearly on the rise. The world
continues to move more and more toward renewable energy sources where the need for large capacity,
inexpensive and long‐lasting energy storage is an absolute necessity.”
About Delrey
Delrey is a mineral exploration company focused on the acquisition, exploration and development of
mineral resource properties, specifically in the strategic energy minerals space. The Company has an
option agreement to purchase a 100% interest in the highly prospective Sunset property situated in the
Vancouver Mining Division and located near Pemberton, British Columbia. In addition to its acquisition
of the Star, Porcher, Blackie, and Peneece Vanadium properties in BC, Delrey intends to review and
acquire projects showing potential for materials used in the energy storage and electric vehicle markets.
Delrey is based in Vancouver, British Columbia, and is listed on the CSE under the symbol “DLRY” and on
the FSE under the symbol “1OZ”.
About Vanadium
Vanadium is one of the largest percentage gainers among the battery metals group (Li, Co, Ni, Cu) since
early 2017 climbing from under $5/lb to over $29/lb where it currently trades. This ductile, malleable
and corrosion resistant transition metal has a wide range of use cases and can be found in automobiles,
pipelines, jet engines, redox flow batteries and as an alloy in steel production, among others. Currently
90% of global vanadium production is used as an alloy in the manufacturing of steel, with the grade of
the steel proportional to its vanadium content. New regulations recently emplaced by the
Standardization Administration of China (SAC) have eliminated Grade 2 steel rebar production in China,
replacing it with Grades 3, 4, and 5, which each consume progressively more vanadium. Global industrial
growth and increased building standards in earthquake prone areas are forecasted to keep demand for
vanadium strong.
The emerging market for Vanadium Redox Flow Batteries (“VRBs”) is showing tremendous potential.
VRBs are non‐flammable, reusable over semi‐infinite cycles and are shown to not degrade for more than
20 years, which make them an efficient alternative to traditional lithium‐ion batteries for grid power
storage. The energy generated by renewable sources such as wind and solar is not constant over time
and presents an excellent use case for VRBs to store excess power generated during peak production
#3707 – 1111 Alberni Street, Vancouver, BC, V6E 0A8
T: 604-620-8904
www.delreymetals.com
periods, which can be utilized during seasons with low wind or sun exposure. While the battery
technology is in its early stages, the recent commissioning of the world’s largest ever battery, a
200MW/800MWh vanadium flow battery in Dalian, China, is proof that the fledgling technology is
progressing at a fast rate. Currently VRBs account for only 2% of global vanadium demand, while many
estimates are forecasting the market share for VRB’s to increase substantially as the emerging VRB
space continues to grow.
Qualified person
Scott Dorion, P.Geo., is the designated Qualified Person of the Company as defined by National
Instrument 43‐101 and has reviewed and approved the technical information contained in this release.
Cautionary Notes
Note that these estimations precede National Instrument 43‐101, are repeated for historical reference
only, and are not to be relied upon. A qualified person has not done sufficient work to classify the
historical estimate as current mineral resources or reserves; and the issuer is not treating the historical
estimate as current mineral resources or reserves. Nevertheless, the estimates were completed by
competent individuals to the standard of the day, and are considered to be relevant to future
exploration of the property.
ON BEHALF OF THE BOARD OF DIRECTORS OF
DELREY METALS CORP.
“Morgan Good”
Morgan Good
President and Chief Executive Officer
For more information regarding this news release, please contact:
Morgan Good, CEO and Director
T: 604‐620‐8904
W: www.delreymetals.com
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, constitute “forward-looking information” as such term is used in
applicable Canadian securities laws. Forward-looking inform ation is based on plans, expectations and estimates of
management at the date the information is provided and is subject to certain factors and assumptions, including,
but are not limited to, general business and economic uncertainties. Forward-looking information is subject to a
variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary
materially from those projected in such forward-looking information. Factors that could cause the forward-looking
information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of
the assumptions referred to prove not to be valid or reliable, which could result in delays, or cessation in planned
work, that the Company’s financial condition and development plans change, delays in regulatory approval, risks
associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility
that results will not be consistent with the Company’s expectations, as well as the other risks and uncertainties
applicable to mineral exploration and development activi ties and to the Company as set forth in the Company’s
#3707 – 1111 Alberni Street, Vancouver, BC, V6E 0A8
T: 604-620-8904
www.delreymetals.com
Management’s Discussion and Analysis reports filed under the Company’s profile at www.sedar.com. There can be
no assurance that any forward-looking information will prov e to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, the reader should not place any
undue reliance on forward-looking information or stat ements. The Company undertakes no obligation to update
forward-looking information or statements, other than as required by applicable law.
1Historical information contained in this news release cann ot be relied upon as the Company’s Qualified Person, as
defined under NI 43-101 has not prepared nor verified the historical information.
2Adjacent Properties - This news release contains information about adjacent properties on which Delrey Metals
does not have the right to explore or mine. Investors are cautioned that mineral deposits on adjacent properties
are not indicative of mineral deposits on the Company's properties.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts
responsibility for the adequacy or accuracy of this release.