Rover Critical Minerals Signs LOI to Acquire High Purity Silica Asset with Average 99.6% SiO2 in Golden, British Columbia
Rover Critical Minerals Signs LOI to Acquire High Purity Silica Asset with Average 99.6%
SiO2 in Golden, British Columbia
V ANCOUVER, BC / ACCESSWIRE / July 24, 2024 / Rover Critical Minerals Corp.
(TSXV:ROVR) (OTCQB:ROVMF) (FSE:4XO) ("Rover" or the "Company") is pleased to
announce that it has entered into a non-binding letter of intent to acquire a 100% interest in the
Silicon Valley Silica Project, near Golden, British Columbia (the "Transaction") Orichalcum
Holdings Inc. (the "Vendor").
The 1,760-hectare (4,349-acre) Silicon Valley Silica Project, located adjacent to the town of
Golden, B.C. and the Sinova Quartz silica quarry, hosts approximately 12 kilometers of
regionally mapped strike length of the high-purity quartzite beds of the Ordovician Mount
Wilson Formation. Sampling in 2017 encountered up to 99.9% SiO2 and an average of 99.6%
SiO2 along a traverse of approximately 190 metres, along strike with the adjacent Sinova Quartz
silica quarry. Deleterious elements were found to be very low, with an average of 0.03% Fe2O3,
0.02% CaO, 0.02% MgO, 0.01% P2O5, and 0.10% Al2O3. Details of the Project are outlined
below.
As the demand for renewable energy sources like solar power grows, driven by global initiatives
to combat climate change, the market for high-purity silica (also known as high-purity quartz, or
HPQ) is poised to expand significantly. With the acquisition of Silicon Valley Silica Project,
Rover is poised to gain a strategic position in the rapidly expanding critical minerals market.
Judson Culter, CEO of Rover states, "On June 10th, the Government of Canada announced that
silicon metal had been added to Canada's Critical Minerals List, in addition to announcing
additional funding for the semiconductor and chip manufacturing industry. The U.S. Government
also has silicon on its critical minerals list, therefore making the project potentially eligible for
DoD or DoE funding through the Defense Production Act Investment (DPAI) program. Through
this Transaction, Rover is gaining a strategic and timely position in what is becoming one of the
most sought-after high-purity silica districts in Canada with a project located adjacent to one of
the largest high-purity silica producers in the country. Silica, despite being the second most
abundant mineral in the Earth's crust, is rare in its purest form, and is in increasingly high
demand as a crucial element in the production of photovoltaics (PV) and semiconductors.
Management closely follows industry trends, evident from companies like Intel, which is on track
to build the world's largest chip-making complex in Ohio, with $20 billion invested by the
company to date. Factoring in macro-economic demand for chips in AI applications, along with
the geopolitical risks of Taiwan holding current market share of the chip industry, this deal has a
bright future."
Paddy J. Moylan, Rover's President and Director, comments, "Silicon Valley is a deal we have
been working on for some time. Silicon Valley is special. It is transformational for our company
and investors. This project has huge potential. We already have boots on the ground within a
short walk to a world-class asset, which is exciting! I will be on site as work progresses.
Importantly, from an ESG point of view, it ticks many boxes. I look forward to finalising the
definitive agreement imminently. Rover has formed a terrific working relationship in the area,
and I am thrilled that Case Lewis, will join us as our exploration manager. I have come to know
Case well and he will be a strong advocate for Rover and Silicon Valley. We will keep investors
informed of progress at all material times as we advance towards positive news flow."
About High Purity Silica
Silicon, which is derived from high-purity silica, is the primary material in the majority of solar
panels, also called photovoltaic (PV) cells. Silicon metal is essential to the manufacture of
computer chips and semiconductors, used in almost any and everything electronic. It is also used
in aluminum production for aerospace applications, as well as anodes in emergent next-
generation lithium-ion batteries. Although silica is abundant in the Earth's crust, silica deposits
with a high degree of purity and volume - those which are in economic demand - particularly in
excess of 99% SiO2, are a relatively rare occurrence, especially in Canada and the U.S..
About Canada's Critical Minerals List June 10 Update
The Critical Minerals List was first released in 2021 and consisted of 31 minerals which were
deemed essential to Canada's green and digital economies. On June 10, 2024, the Government of
Canada released an updated Critical Minerals List which increased the number of critical
minerals to 34, now including silicon metal.
To be included in the Critical Minerals List, the Government of Canada must consider that: (1)
the supply chain of the material is threatened; (2) there is a reasonable chance of the mineral
being produced by Canada and; (3) the mineral is considered to be one of the following:
• essential to Canada's economic or national security; or
• required for the national transition to a sustainable low-carbon and digital economy; or
• positions Canada as a sustainable and strategic partner within global supply chains.
https://www.canada.ca/en/natural-resources-canada/news/2024/06/government-of-canada-
releases-updated-critical-minerals-list.html
Project Highlights - Silicon Valley Project, Golden, B.C.
• 1,760 hectares (4,349 acres) adjacent to the town of Golden, B.C., and less than 1km
from the Canadian Pacific Railway Golden Rail Yard with easy year-round access.
(Figure 1)
• High-purity quartzite of the Ordovician Mount Wilson Formation with up to 12 km of
regionally mapped strike length on the property and up to 300 metres apparent width at
surface. Bedding strikes 120 to 140º and dips from 60 to 75º.
• On the same lithological unit and close to both Sinova Global's Sinova Quartz quarry pit
(500m to south) and the Moberly Silica Mine (9.0 km to north). Sinova Quartz has been
permitted for over 1,000,000 tonnes of annual silica production. (1)
• The HCJ MINFILE occurrence on the Project was first reported in 1972 by Dr. L.B.
Halferdahl, who characterized the quartzite unit as containing sequences with thicknesses
of 30 metres or more of very white to grey high grade silica material, with no impurities
being visible with examination even with a 20x hand lens and thus having the potential
for ferrosilicon-grade material. The quartzite silica bed at the Silicon Valley Project was
mapped to extend at least from the HCJ MINFILE occurrence at the north end of the
current Property, to the Sinova Quartz quarry at the south end of the Property. (2)
• 2018 sampling extending from 50 metres from the boundary of the adjacent Sinova
Quartz quarry tenure encountered up to 99.9% SiO2 and an average of 99.6% SiO2 from 7
grab samples taken over a traverse of approximately 190 metres, along strike from the
Sinova Quartz quarry. Deleterious elements were found to be very low, with an average
of 0.03% Fe2O3, 0.02% CaO, 0.02% MgO, 0.01% P2O5, and 0.10% Al2O3. Grab samples
in the northern area of the Property yielded grades up to 99.1% SiO2. (Figure 2) (3) *
• Also in 2018, 92 Resources Corp (now Patriot Battery Metals Inc (TSX:PMET)), the
former owner of the majority of the Silicon Valley Project area, encountered grades of
99.11, 98.56 and 98.28% SiO2 from grab samples in the northern area of the Property.
(Figure 3) (4) *
• According to Sinova Global's website, regarding their expansion at Sinova Quartz:
o Quartz from this deposit requires very limited processing relative to material from
other quartz operations. With high-purity silica and correspondingly low levels of
impurities such as boron, iron, phosphorus and aluminum, the Sinova Quartz
operation creates minimal by-products and requires less energy to process.
o A tailings management facility is not necessary to mitigate environmental
impacts. Only primary crushing will be done on-site then it will be stockpiled and
hauled offsite to be processed.
o No wastewater will be treated at the Sinova Quartz project as minimal water will
be used in processing for dust control, and no tailings facilities will be
constructed. (1)
Figure 1. Silicon Valley Project Map
Figure 2. Silicon Valley Project Map - South Sampling Area
Figure 3. Silicon Valley Project Map - North Sampling Area and HCJ MINFILE Location
Transaction Terms
The Company has entered into the Transaction with Orichalcum Holdings Inc., dated July 19,
2024, an arm's length party. The terms of the option agreement are set forth below:
In order to exercise the Option and acquire a 100% interest in the Property, the Company is
required to:
a. incur at least $1,020,000 in exploration expenditures over 24 months from the signing of
a definitive agreement. A minimum of $20,000 is to be incurred in the first three months.
b. issue common shares to the Vendor as follows:
i. 2,000,000 common shares of the Company ("Common Shares") on or before
ninety (90) days after the date of execution of the Definitive Agreement;
ii. such number of Common Shares having an aggregate value of $50,000, on or
before the 6-month anniversary of the execution date of the Definitive Agreement,
calculated based on the 10-day VWAP;
iii. such number of Common Shares having an aggregate value of $100,000, on or
before the 12-month anniversary of the execution date of the Definitive
Agreement, calculated based on the 10-day VWAP;
iv. such number of Common Shares having an aggregate value of $200,000, on or
before the 24-month anniversary of the execution date of the Definitive
Agreement, calculated based on the 10-day VWAP;
v. such number of Common Shares having an aggregate value of $200,000, on or
before the earlier of the 36-month anniversary of the execution date of the
Definitive Agreement or the issuance of a mining or quarry permit for the
Property, calculated based on the 10-day VWAP;
vi. such number of Common Shares having an aggregate value of $250,000, on or
before the earlier of the 48-month anniversary of the execution date of the
Definitive Agreement or the commencement of commercial production on the
Property, calculated based on the 10-day VWAP.
c. make cash payments to the Vendor in the aggregate amount of $855,000 as follows:
i. $10,000 on signing of the Definitive Agreement;
ii. $15,000 within 10 weeks of signing the Definitive Agreement;
iii. $80,000 on or before the 12-month anniversary of signing the Definitive
Agreement;
iv. $200,000 on or before the 24-month anniversary of signing the Definitive
Agreement;
v. $200,000 on or before the earlier of the 36-month anniversary of signing the
Definitive Agreement or the issuance of an extraction permit for the Property;
vi. $350,000 on or before the earlier of the 48-month anniversary of signing the
Definitive Agreement or the commencement of commercial production on the
Property.
If the Buyer fails to satisfy the payment terms and conditions of the Option, Buyer's option to
acquire the Property will terminate, and the Property shall automatically become the sole
possession of the Vendor. Buyer must ensure the claims will be in good standing for at least 12
months following the date of termination.
The Vendor will retain a 2% Gross Overriding Royalty ("GORR") on the Property. For so long
as the Company holds an interest in the Property the Company shall have the right to purchase, at
any time prior to production, 0.5% of the Vendor's GORR (for cancellation) for purchase price of
$500,000, and an additional 0.5% for an additional $500,000.
The Property shall be surrounded by a specified area of interest in which any claims staked
within this area by the Vendor or the Buyer shall automatically be included in the Definitive
Agreement.
Buyer to maintain all claims in good standing until the exercise of the Option.
Additional Technical Details on the Silicon Valley Project, B.C.
The property is underlain by thick sequences of extremely pure quartzite of the Ordovician
Mount Wilson Formation, occurring as north-northwest striking, usually steeply east-dipping
thrust panels.
Locally, quartzite of the Mount Wilson Formation occurs as friable sandstone, grading deeper to
well cemented quartzite. Several faulted and displaced segments of the Mount Wilson quartzite
unit occur on the Property, totaling approximately 12 kilometres of strike length at an average
apparent width of 250-300 metres at surface. Structurally repeated segments of the same
lithological unit host the Moberly Silica Mine (9.0 kilometres to the north), which previously
produced up to 150,000 tonnes of silica sand annually, and the Sinova Quartz silica quarry (500
metres to the south), which produced up to 90,000 tonnes of silica annually, both of which
exhibit economic grade silica greater than 99.6% SiO2 purity. (5)(6)
The quartzite can be described as frosty white, sedimentary quartzite with a clastic texture
containing fine, well-rounded polished grains 1/8 - 1/4 mm in diameter. Very competent bonding
allows breaking to occur through the quartz grains.
* Cautionary Note
The reader is cautioned that grab samples are selective by nature and may not represent the true
grade or style of mineralization across the property.
Sources
1. https://sinovaglobal.com/wp-content/uploads/2023/05/Sinova-Quartz-Brief-Final.pdf
2. https://apps.nrs.gov.bc.ca/pub/aris/Report/03685.pdf/
3. https://apps.nrs.gov.bc.ca/pub/aris/Report/37599.pdf/
4. https://apps.nrs.gov.bc.ca/pub/aris/Report/38110.pdf/
5. https://minfile.gov.bc.ca/Summary.aspx?minfilno=082N++001
6. https://minfile.gov.bc.ca/Summary.aspx?minfilno=082N++043
$0.03 Unit Financing
Further to the Company's release of July 3, 2024, the Company $0.03/unit financing (the
"Private Placement") is now closed. Rover received total orders of $327,344 resulting in the
issuance of 10,911,467 common shares, and 10,911,467 common share purchase warrants. No
finders' commissions will be paid in connection with the Private Placement. The closing is
subject to final acceptance and approval by the TSX Venture Exchange. It is expected that a new