Sterling Metals Signs Definitive Agreement to Acquire the Copper Road Project in Ontario
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UNITED STATES
Sterling Metals Signs Definitive Agreement to Acquire the
Copper Road Project in Ontario
February 14, 2024 – Toronto, Ontario – Sterling Metals Corp. (TSXV: SAG, OTCQB: SAGGF) (“Sterling” or
the “Company”) is pleased to announce that it has entered into a definitive share purchase agreement
(the “ Agreement”) dated February 13, 2024, with Copper Road Resources Inc. (the " Vendor") and its
wholly-owned subsidiary, 100797918 Ontario Inc. (the " Subsidiary") to acquire 100% interest in the
Copper Road Project (“ Copper Road” or the “ Project”), from Copper Road Resources Inc. (TSXV: CRD),
arm’s length parties to the Company (the “Transaction”). Located 80km north of Sault Ste. Marie, Ontario,
Canada, Copper Road is a 24,000ha high-potential brownfield copper-moly-silver-gold project associated
with the Midcontinent Rift (“MCR”), which until 2021 had never been fully consolidated. Recent porphyry
and breccia drill holes as well as past copper production from two mines suggest the potential for larger
intrusion related copper mineralization. The project benefits from its strategic proximity to substantial
infrastructure (Figure 1).
Transaction Highlights
• Accretive Acquisition Terms – Sterling is acquiring 100% of the Project in consideration for 98%
of the current issued and outstanding shares of Sterling and $460,000 in cash payments payable
in two tranches (see below for details). Upon completion of the Transaction, existing Copper Road
and Sterling shareholders will own approximately 49% and 51% of the Company, respectively.
• 24,000ha Project Surrounded by Robust Infrastructure – The contiguous claims stretch 30km and
includes the past producing Coppercorp and Tribag copper mines, multiple near surface porphyry
and breccia drill intercepts, and several surface anomalies discovered via trenching and sampling.
The Trans-Canada Highway cross es the Project , and surrounding infrastructure includes
hydroelectricity from the Montreal River, two copper smelters and the Port of Sault Ste. Marie.
• Positioned on an Important Geological Copper Belt in North America – The MCR is home to
numerous past-producing and present deposits around Lake Superior, including the prolific native
copper deposits of the Keweenawan Peninsula in the U.S., mined for more than 150 years . The
porphyry mineralization at Copper Road has been sourced to the same age range as the primary
mineralizing event within the MCR.1
1 Perello J., Silitoe R.H., and Creaser R.A., 2020, Mesoproterozoic porphyry copper mineralization at Mamainse Point, Ontario,
Canada in the context of Midcontinent rift metallogeny, Ore Geology Reviews 127
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• Multiple Breccia and Porphyry Zones Drilled in 2023 – Recent drilling confirm ed copper and
molybdenum mineralization over long intervals in the heart of the Project (See JR Zone, Figure 3).
o Breccia zone drill highlights include up to 38.63m of 1.06% Cu in R2301 and 50.17m of
0.88% Cu in R2304 from 76m and 79m downhole, respectively (Table 2).
o Porphyry highlights include intercepts of up to 95m of 0.2% Cu and 0.048% Mo from 4m
downhole in JR2302 (Table 1).
• Broadened Canadian Copper Exploration Portfolio for a Rising Copper Market – With
approximately $4M in treasury, the Project expands Sterling’s existing Canadian copper footprint
and leverages its strong technical team for maximum capital efficiency to discover tier 1 copper
projects in tier 1 jurisdictions.
Mathew Wilson, CEO of Sterling Metals, stated, “The Copper Road Project is a compelling asset which for
decades has seen fractured exploration until the consolidation of the land package by the Copper Road
team in 2021. Difficult markets have made the Project’s advancement challenging but together, with our
first-class team and strong treasury, this land package can see a regional targeting approach that builds
upon the success of the Copper Road team’s consolidation and recent porphyry and high -grade breccia
discoveries.”
Mr. Wilson, continued, “Importantly, the addition of the Project complements our existing portfolio of
Canadian exploration opportunities, and provides a suite of projects focused on extensive mineral systems
positioning us very well in anticipation of an upcoming copper super cycle. While our focus will shift
primarily to advancing Copper Road upon closing of the Transaction, we will remain committed to
understanding Adeline’s potential, providing the best leverage possible for our shareholders.”
Mark Goodman, Chairman of Copper Road stated, “ We are pleased to partner with Sterling on a
transaction that is compelling on many levels . This transaction not only provides immediate capital but
also brings forth dedicated technical expertise crucial for advancing the Copper Road Project swiftly.
Additionally, with the Project in a larger portfolio, we have multiple opportunities for discove ry and
advancement in tier 1 jurisdictions.”
Terms
In order to effect the Transaction, the Vendor will assign all its right, title and interest to the Project ,
including two option agreements (the " Option Agreements "), to the Subsidiary. The Company will
acquire, by way of an exempt takeover bid, all of the issued and outstanding common shares (the
"Purchased Shares") in the capital of the Subsidiary from the Vendor, in consideration, of the issuance to
the Vendor such number of common shares (the "Common Shares") in the capital of the Company which
is equal to 49% of the issued and outstanding Common Shares immediately upon closing of the
Transaction, and aggregate cash payments of $460,000 to the Vendor , comprised of $200,000 upon
execution of the Agreement and $260,000 upon closing of the Transaction.
The completion of the Transaction is subject to the satisfaction of certain conditions precedent, including
but not limited to receipt of all necessary consents, including the consent of the assignment of the Option
Agreements to the Subsidiary by the optionors to the Option Agreements , approvals and other
authorizations of any regulatory authorities, including but not limited to the approval of the TSX Venture
Exchange and the approval of the shareholders of the Vendor.
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Following the completion of the Transaction and subject to receiving shareholder approval, the Vendor
intends to distribute at least 90.1% of the Common Shares that it receives in connection with the
Transaction to its shareholders.
About the Copper Road Project
Location and Infrastructure
The Project covers 24,000ha and stretches approximately 30km. The Project is located in an area with a
rich mining history, 30km from Batchewana Bay and situated between Wawa, Sault Ste. Marie, Sudbury
and Timmins in Ontario, Canada (Figure 1) . The project is intersected by numerous highways and roads
including the Trans-Canada Highway (Highway 17), which crosses the westernmost portion and provides
major road connection to the city of Sault Ste. Marie. It is located 90km from the Port of Sault St Marie,
and 40km from the Montreal River, which includes four hydroelectric dams and generating stations. The
project is also ideally located in proximity to two copper smelters located outside of Sudbury.
Figure 1: Location of the Copper Road Project in Ontario, Canada located in proximity to significant
infrastructure
Geological Significance and History
The Project is situated within the Mamainse Point Formation of the Keweenawan Group within the
Proterozoic Southern Province, on the eastern edge of the MCR (Figure 2). The MCR is the same structure
that formed Lake Superior and the world-class Keweenawan peninsula copper-mining region in the U.S.,
which housed the initial copper rush in the mid-1800’s and was mined for more than 150 years.
The Mamainse Point area has a long history of prospecting, exploration, and mining activity dating to the
mid-1800’s with the production of copper, silver, and gold from the Coppercorp Mine from 1965 to 1972
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and the Tribag Mine from 1965 to 1973. The Coppercorp mine reportedly produced 1.02Mt at 1.16% Cu2
while t he Tribag Mine had r eported ore reserves of 600,000 tons at 2.2 % Cu 2 with reported copper
extracted of 16,000t from over 1Mt of ore from 1967-19743. Following closure of the mines, significant
sections of the district were closed to staking by the Ontario Government . As a result of this, and
fragmented land ownership, the area has seen only sporadic mineral exploration since the 1970s.
Figure 2: Geological map of the Midcontinent Rift showing the Copper Road Project’s location in
relation to the major copper deposits located along or near the MRC4
2 Independent Technical Report entitled “Coppercorp Property, Sautl Ste. Marie, Ontario”, dated December 5, 2017, prepared
by Trevor Boyd, PhD., P.Geo. for CR Capital Corp.
3 K.I. Hymas, P.Eng, August 23, 1966. Teck Corporation Limited. Report on Feasibility of Economic Production at the Tribag
Mine.
4 Independent Technical Report entitled “Coppercorp Property, Sautl Ste. Marie, Ontario”, dated December 5, 2017, prepared
by Trevor Boyd, PhD.,
P.Geo. for CR Capital Corp.
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Exploration
In late 2021, Copper Road consolidated the district for the first time since it was discovered in the 1960s.
2023 drilling focused primarily on confirming and expanding on the historical porphyry and breccia results
in the JR Zone, located approximately 1km from each other, in the center of the project (Figure 3).
Figure 3: Mineralization at the Copper Road Project
At the Jogran Porphyry, drilling has successfully confirmed the continuity of the copper and molybdenum
porphyry hosted mineralization over long intervals. This mineralization also extends to the southwest into
the mafic volcanics where it is associated with localized and discrete potassic alteration (magnetite and
biotite) occurring as haloes adjacent to quartz -carbonate veinlets and as local patches in the mafic
volcanics. Select holes from 2023 drilling as announced by Copper Road in a press release on November
30, 2023 are highlighted below in Table 1.
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Table 1: Select Intercepts from 2023 Drilling in the Jogran Porphyry
Note: The geometry of the mineralization zone is yet to be confirmed and the intervals may not represent true widths.
At t he Richards Breccia , f our (4) holes were drilled by Copper Road to test the continuity of the
mineralization originally drill -tested by Aurogin Resources in 1997 and 1998, with an additional hole
testing an area of high gradient chargeability, located approximately 200m to the west-northwest of the
breccia. Drilling successfully extended the breccia 50 to 60 m vertically below the known mineralization,
establishing the vertical extent of mineralization to 130m from surface. The breccia remains open at depth
and potentially to the northeast. Select holes from 2023 drilling as announced by Copper Road in a press
release on November 30, 2023 are highlighted below in Table 2.
Table 2: Select Intercepts from 2023 Drilling in the Richards Breccia
Note: The geometry of the mineralization zone is yet to be confirmed and the intervals may not represent true widths.
Junior Exploration Assistance Program Approval
Sterling is also pleased to announce that it has been selected by the Mineral Development Division of the
Newfoundland and Labrador Department of Industry , Energy and Technology (IET) to receive a grant
under the Junior Exploration Assistance Program (JEA) for exploration work conducted in 2023. The
Drill Hole Drill Intercept (metres) Grade
From To Length Cu (%) Ag (g/t) Mo (%)
J2301 8.00 350.00 342.00 0.13 1.18 0.015
Including 39.00 52.00 13.00 0.16 2.26 0.027
Including 69.00 98.00 29.00 0.10 1.60 0.040
Including 188.00 284.00 96.00 0.18 1.23 0.015
Including 198.00 212.00 14.00 0.20 1.12 0.053
Including 234.00 245.00 11.00 0.20 1.22 0.004
Including 256.00 279.00 23.00 0.25 1.55 0.009
Including 318.78 350.00 31.22 0.17 0.88 0.010
Including 318.78 335.00 16.22 0.21 1.17 0.016
J2302 4.00 201.00 197.00 0.17 1.62 0.025
Including 4.00 99.00 95.00 0.20 1.97 0.048
Including 5.00 26.00 21.00 0.27 2.15 0.120
Drill Hole Drill Intercept (metres) Grade
From To Length Cu (%) Ag (g/t) Mo (%) Au (g/t)
R2301 76.37 115.00 38.63 1.06% 3.55 0.002 0.07
Including 98.00 108.00 10.00 2.19% 7.96 0.002 0.11
R2304 79.00 129.17 50.17 0.88 4.56 0.002 0.09
Including 80.00 120.00 40.00 0.99 4.58 0.002 0.09
Including 81.00 89.00 8.00 2.09 16.00 0.004 0.21
Including 117.00 120.00 3.00 2.41 7.20 0.001 0.23
R2305 72.00 85.00 13.00 0.31 1.72 0.000 0.03
Including 73.83 75.00 1.17 2.03 11.17 0.001 0.18
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amount of the grant is to be determined. Sterling thanks the IET and the Government of Canada for their
financial support under the program toward the initial exploration of the Adeline Project.
Qualified Person
Jeremy Niemi, P.Geo., Senior Vice President, Exploration and Evaluation for Sterling Metals has reviewed
and approved the technical information presented herein.
About Sterling Metals
Sterling Metals (TSXV: SAG and OTCQB: SAGGF) is a mineral exploration company focused on large scale
and high -grade Canadian exploration opportunities. The Company is advancing the 29,000-hectare
Adeline Project in Labrador which covers an entire sediment -hosted copper belt, with demonstrated
potential for important new copper discoveries with significant silver credits, and the Sail Pond Project in
Newfoundland.
About Copper Road Resources
Copper Road Resources (TSXV: CRD) is a Canadian based explorer engaged in the acquisition, exploration
and evaluation of properties for the mining of precious and base metals. The Company is exploring for
large copper/gold deposits on the 24,000-hectare Batchewana Bay Project, 80km north of Sault St. Marie,
Ontario, Canada.
For more information, please contact:
Sterling Metals Corp.
Mathew Wilson, CEO and Director
Tel: (416) 643-3887
Email: [email protected]
Website: www.sterlingmetals.ca
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