Minfocus Announces Agreement to Acquire Further Interest in Coral Zinc Project
Minfocus Announces Agreement to Acquire Further Interest in Coral Zinc Project
June 28, 2018 - Minfocus Exploration Corp. (TSX-V: MFX) (“Minfocus” or “Company”) is pleased to
announce that it has agreed to an offer to acquire a 45% ownership interest (“New Coral Interest”) in the
80% interest in the Coral Zinc Project tenures that Minfocus does not hold. Minfocus currently holds a
direct 20% interest in the Coral Zinc Project tenures , and the New Coral Interest would represent a n
additional 36% beneficial ownership interest in the Coral Zinc project. Minfocus will issue 7,500,000
common shares (“Coral Shares”) plus 7,500,000 share purchase warrants. Each share purchase warrant
shall be exercisable for two years to purchase one common share of Minfocus at an exercise price of
$0.05 per share. The agreement is subject to certain condition precedents and receiving TSXV approval
of the terms of the agreement. No New Control Person as defined under TSXV Policy shall be created as
result of the issuance of the Coral Shares.
Prior to the acceptance of the offer, Minfocus commissioned and received an independent valuation report
from the consulting firm RPA of Toronto for the value of the 36% beneficial interest to be purchased.
The valuation report provided an estimate of the value of the New Coral Interest as a range of values on a
“Fair Market Basis”, which RPA’s report defines as, “the price that an informed, willing, and
independent purchaser would pay to an informed, willing and independent seller, at a specific time.”
In August 2017, under the current Coral Zinc Project option agreement, Minfocus announced it had
earned a direct 20% interest in the Coral tenures, which do not expire until November 2024 . Under the
current option agreement, Minfocus could earn an additional 20% direct interest (cumulative 40%) in the
Coral tenures by completing a further $550,000 in exploration expenditures and making a payment of
$40,000 (in cash or shares) by September 30, 2018.
Dr. Graham Wilson, P.Geo.(Ont), independent Director and Minfocus’ Qualified Person, noted, “ This
offer is an exceptional opportunity for Minfocus to further consolidate its interest in the Coral Zinc
Project. We believe that the offer represen ts a valuable complement t o the earlier acquisition and
consolidation of the Poco claim into the Coral Zinc Project, particularly in view of the recent LiDAR
results and sequential revelations, over the years, of at least three major zinc anomalies at the Coral Zinc
Project, the core of each, as currently understood, remaining untested by past drill programs”
These recently completed property agreements further solidify Minfocus’ ground positions at these two
promising Mississippi -Valley-Type (“MVT”) zinc projects in British Columbia, the Coral Zinc Project
and the Peregrine Zinc Project. These projects are in addition to a third MVT zinc project recently
optioned by Minfocus, the Round Pond Zinc Project in Newfoundland.
Coral Zinc Project, British Columbia
This news also follows the recent announcement of acquisition of an additional (36 ha) tenure at its Coral
Zinc Project covering the remaining part of the “Poco Ridge Showings” (see Minfocus news release Apr
16, 2018). A significant new exploration target has been identified within two 1975 historic geochemical
surveys. The new target area hosts historic trenching and sections sampled over an area of roughly 600
metres x 75 metres. The Poco Ridge Showings include a trench with an average 5.1% zinc-lead over 11.9
metres (“Lower Trench”), and a parallel trench 7 metres away with an average 19.3% zinc -lead over 3.5
metres (“Upper Trench”). The assays ranged from 0.3% to 9.2% Zn+Pb in the Lower Trench; 0.6% to
43.4% Zn+Pb in the Upper Trench.
Also, Minfocus announced recently ( see Minfocus news release June 4, 2018) the r esults of further
analysis of the 2017 LiDAR survey on its Coral Zinc Project in British Columbia. A previously
undetected structurally disturbed zone over 1,800 metres long and up to 200 metres wide is clearly visible
in LiDAR images. This extensive structure is believed to be the source of the large zinc anomaly above
Hound Dog Creek, one of several large zinc soil geochemical anomalies on the Coral Zinc Project. The
structure contains ten (10) outcropping intensely weathered sulphide boxwork gossans, three with visible
remnant galena, scattered over an additional 900 metres farther southwest from the Hound Dog Creek
anomaly. No historical drilling has ever tested this previously undetected structural zone.
Peregrine Zinc Project
Minfocus also announces the closing of the previously announced acquisition of the strategic additional
(20 ha) tenure that is contiguous with its Peregrine Zinc Project tenures in southeastern British Columbia
(see Minfocus news release May 8, 2018) . Minfocus has issued a total of 550,000 shares to the vendor
and granted a 2.0% NSR royalty to acquire the claim under the terms of the agreement. Minfocus shall
retain the option to buy back 1.0% of the NSR royalty for $500,000 to reduce the royalty to a 1.0% NSR
interest.
The new Peregrine tenure is contiguous to the existing Peregrine Zinc Project tenures and on the
mineralized stratigraphic trend and ho rizons identified from historic exploration by Cominco. In 1986,
Cominco completed trenching and chip sampling at two showings at the Peregrine Zinc Project. At
Showing No. 1 , on the new ly-acquired tenure, using 1 -metre intervals, sampling channeled obli quely
across breccia zones in the Cambrian-age Jubilee Formation returned assays over 17 m of 11.1% Zn,
including an interval of 14.3% Zn over 11 m with assays ranging from 2.90% to 25.2% Zn. At Showing
No. 2, on existing Peregrine tenures , similar trench sampling assayed 11.7% Zn over 1.7 m . Cominco
reported that surface mineralization at the two main showings investigated is of “significant extent and
grade.” Historical soil geochemical surveys in the area were reported by Cominco to have “numerous
highly a nomalous zinc values ranging from 5,000 to 30,000 ppm Zn with moderately to locally very
anomalous 100 to 1,500 ppm lead values .” All assays and analyses were performed at Cominco’s
exploration laboratory in Vancouver, B.C.
About Minfocus Exploration Corp.
Minfocus Exploration Corp. is a Canadian company currently advancing a portfolio of base-metal projects including
three Mississippi-Valley-Type zinc projects in British Columbia and Newfoundland and a Platinum Group Element
(“PGE”)–enriched Ni -Cu-Pt-Pd project in N.W. Ontario. Minfocus has a successful management group with a
record of multiple discoveries of deposits worldwide, including gold and uranium deposits in Mongolia and PGE -
rich resources in Ontario, including the discovery of the first platinum-rich Ni-Cu-Pt-Pd deposit in the Midcontinent
Rift, the Current Lake deposit (+700,000 oz. Pt-Eq).
For further information, please contact:
Kenneth B. de Graaf
President & Chief Executive Officer
Email: [email protected]
The Qualified Person who has reviewed and approved the technical content contained in this release is Dr. G raham C. Wilson ,
P.Geo.(Ont), a director of Minfocus.
Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is define d in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release includes certain forward -looking statements concerning the future performance of the Company’s business and
operations as well as management’s objectives, strategies, beliefs and intentions. Forward -looking statements are often identifiable
by the use of words such as “may”, “will”, “might”, “would”, “plan”, “believe”, “expect”, “anticipate”, “intend”, “estimate”,
“scheduled”, “forecasts” and similar expressions or variations (including negative variations) of such words and phrases.
Forward-looking statements are based on the current opinions and expectations of management, and are subject to a number of risks
and uncertainties that may cause actual results, performance or achievements of the Company to be materially different from those
currently anticipated by such statements. Factors that could cause actual results or events to differ materially from curren t
expectations include, among other things, the possibility that future exploration results will not be consistent with the Company’ s
expectations, fluctuating commodity prices, delays in commencing the Company’s proposed drilling program, exploration costs
varying significantly from estimates, the availability of financing, and other risks identified in the Company’s documents filed w ith
the Canadian securities regulatory authorities at www.sedar.com. Any forward-looking statement speaks only of the date on which it
is made, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to updat e any
forward-looking statement.