Temas Resources Enters Strategic Partnership with Erin Ventures for Development of Erin’s Piskanja Boron Project
Temas Resources Enters Strategic Partnership with Erin Ventures for
Development of Erin’s Piskanja Boron Project
VANCOUVER, British Columbia, December 17, 2020 Temas Resources Corp. (the “Company”
or “Temas Resources”( (CSE: TMAS, OTCQB: TMASF), is pleased to announce that it has
entered into a letter of intent with Erin Ventures Inc. (“Erin”) for the joint development of
Erin’s Piskanja Borate Project, located in Serbia (“Piskanja”).
Piskanja is Erin’s wholly owned boron deposit with an indicated mineral resource of 7.8 million
tonnes (averaging 31.0 per cent B 2O3), and an inferred resource of 3.4 million tonnes
(averaging 28.6 per cent B2O3), calculated in accordance with the Canadian Institute of Mining
Definition Standards on Mineral R esources and Reserves (CIM Standards), as disclosed in
Erin’s report titled, “Mineral Resource Estimate Update On The Piskanja Borate Project, Serbia,
October 2016 - Amended February 28 2019” - prepared by SRK Consulting (UK) Ltd. The
responsible persons f or the Updated MRE are Dr Mike Armitage (C.Eng. C.Geol.) and Dr
Mikhail Tsypukov who are both employees of SRK and Qualified Persons in accordance with
the CIM Definition Standards on Mineral Resources and Reserves (CIM Standards), and
independent of Erin Ventures.
The salient terms in the letter of intent (“LOI”) as are follows:
Upon execution of a definitive option agreement (the “Option Agreement”), Temas will
have the sole, exclusive, immediate, and irrevocable option to earn up to 50% equity
interest in Balkan Gold (Erin’s wholly owned subsidiary which holds the license to the
Piskanja Boron Project) by expending a total of €10.5 million towards the development
of Piskanja, within a 36 -month period (subject to acceleration at the election of Te-
mas).
Upon receiving necessary regulatory approvals, Temas will make a one-time payment
of 250,000 Temas common shares and 250,000 share purchase warrants (at $1.00 for
4 years) to Erin.
The terms of the LOI will form the basis of the Option Agreement, which the p arties
contemplate will be entered into no later than April 15, 2021.
Temas has until February 28, 2021 to complete its due diligence regarding Piskanja.
Each €210,000 advanced to the Project by Temas will earn Temas an additional 1%
undivided equity interest in Balkan Gold, to a maximum of 50% interest for €10.5M.
Upon acquisition of 50% interest in Balkan Gold by completing its expenditures, Temas
will be entitled to representation on the board of Balkan Gold, voting rights, and dilu-
tion provisions, among other rights regarding the governance of Balkan Gold.
The Option Agreement will include standard dilution provisions.
Erin will remain operator on the project until such time as Temas has exercised the
Option and earned its 50% interest in Balkan Gold, at which point Temas will become
operator of Piskanja.
During the three year option period, a joint technical committee made up of members
from both Erin and Temas will have final say on matters pertaining to programs and
budgets.
This LOI is non-binding, with the terms subject to the parties entering into a binding
Option Agreement.
The Option Agreement will be subject to satisfactory completion of due diligence, ap-
plicable regulatory approvals, board approvals, shareholder approvals as may be re-
quired, amongst other factors.
“We are extremely excited by this development” said Tim Daniels, CEO of Erin. “Temas is an
exceptionally good fit for this project. Not only are they willing to match their funding
commitments for Piskanja, with the anticipated equity requirements for project development
right through to production, but in addition, they have an experienced management team
with like-minded thinking towards the development of Piskanja. Undoubtedly we are stronger
with them as our partner.”
Michael Dehn, CEO of Temas stated “having the ability to work on a great project and high
demand commodity, that would be the only European production of borates that should add
significant shareholder value. When considering Piskanja, alongside our Ilmenite deposits in
Canada, we believe that Temas is becoming a very compelling story. Having access to premier
projects that could produce products that end up in consumer and industrial products is
intended to allow Temas evolve from an explorer to producer.”
Piskanja is located in a historical mining region that has excellent infrastructure for mining
including roads, rail, electric power, experienced miners, and is 250 km south of Belgrade,
Serbia by paved roads. Erin Ventures reported on August 31, 2010, that it had been granted
a license for the Piskanja boron deposit in Serbia by the Serbian Ministry of Mining and Energy.
The license includes the entire known historical mineralized area along with a substantial
amount of previously unexplored ground.
SRK Mineral Resource Statement as at July 19, 2016 for the Piskanja
Deposit prepared in accordance with CIM Standards
Mineral Resource
Category1
Cut-off
(B2O3)
Tonnage, Mt
B2O3
Grade, %
Contained
B2O3, Mt3
Indicated 12% 7.8 31.0 2.4
Inferred2 12% 3.4 28.6 1.0
1Mineral Resources are not Mineral Reserves as they have no demonstrated economic viability.
Temas is not aware of any factors (environmental, permitting, legal, title, taxation, socio -
economic, marketing, political, or other relevant factors) that have materially affected the
Mineral Resource Estimate.
2Inferred mineral resources are considered too speculative geologically to have economic
considerations applied to them that would enable them to be categorized as mineral reserves.
There is also no certainty that these inferred mineral resources will be converted to the
measured and indicated categories through further drilling, or into mineral reserves, once
economic considerations are applied.
3Contained metal figures and totals may differ due to rounding of figures.
Effective date of resource estimate February 28, 2019
Assumptions used to derive the cut-off grades in order to meet the NI43-101 requirement for
mineral resource estimates to demonstrate "reasonable prospects for eventual economic
extraction". The estimate assumes:
- An average production of 330,000tpa,
- Mean mining grade of 27.8% B2O3
- All Run of Mine (RoM) ore to report to a Colemanite Plant for Colemanite production.
- A mean mass yield of RoM ore to Colemanite product of 73.8%.
- An average recovery of B2O3 from RoM ore to Colemanite of 92.9%.
- ~ 50,000tpa of Colemanite product (at 35% B2O3) to be subsequently processed to
produce 25,000tpa of Boric Acid product with an assumed grade of 56.3% B2O3. The
remaining Colemanite product is sold.
- A mean mass yield of Colemanite to Boric Acid product of 49.7% and an assumption
that 80% of the B2O3 is recovered to the product.
- A Colemanite (at 35% B2O3) price of USD400/t product.
- A Boric Acid (at 56.3% B2O3) price of USD800/t product.
- Royalty deduction of 5% on gross revenue.
- Other sales and marketing costs of USD1.5/t product sold.
- Total Construction Costs of US$85Million.
- Sustaining Capital Costs of US$19Million.
- Closure Costs of US$15Million
- Operating Costs of US$170/tonne product
About Temas Resources
Temas Resources Corp. ("Temas Resources") (CSE: TMAS) (OTCQB: TMASF) is responding
to the growing global demand for iron ore and two strategically important minerals — titanium
and vanadium — deemed by the U.S. Department of the Interior as critical to U.S. national
security and the economy. Te mas Resources properties are located in the stable, mining -
friendly jurisdiction of Quebec (Canada) bordering Vermont, Maine, and New York State (U.S.)
in an area known as the Grenville Geological Province. The Grenville Geological Province is
home to Lac Tio, the largest solid ilmenite deposit in the world. As a mineral exploration
company focused on the acquisition, exploration and development of iron, titanium, and
vanadium properties, Temas Resources has focused its efforts on advancing two major
projects in the Grenville Geological Province area. The Company’s first project, the DAB
Property, consists of an option for 100% interest on 128 contiguous mineral claims which
covers 6,813 hectares (68.14 km²) within the Grenville Geological Province. At the Company’s
flagship La Blache Property, Temas has 100% ownership of 48 semi-contiguous mineral claims
which cover 2,653 hectares (26.53 km²) within the Grenville Geological Province. All public
filings for the Company can be found on the SEDAR website www.se dar.com. For more
information about the Company, please visit www.temasresources.com.
Qualified Person
Rory Kutluoglu, B.Sc, P.Geo, is the Qualified Person as defined by NI 43-101 who has reviewed
and approved the technical information contained within this press release.
“Michael Dehn”
CEO
Contact: Nick Spencer, Investor Relations
Phone: +1 (604) 332-0902
Email: [email protected]
Forward Looking Statements
This news release includes certain “Forward ‐Looking Statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and “forward‐looking
information” under applicable Canadian securities laws. When used in this news release, the
words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”,
“would”, “could”, “schedule” and similar words or expressions, identify forward ‐looking
statements or information. These forward‐looking statements or information relate to, among
other things: entry into of the Option Agreement, the Company’s plan to build an advanced
base and special metals portfolio, the development of the Company’s mineral properties ,
including drilling activities; and future mineral exploration, development and production.
Forward‐looking statements and forward ‐looking information relating to any future mineral
production, liquidity, enhanced value and capital markets profile of Temas Resources, future
growth potential for Temas Resources and its business, and future exploration plans are based
on management’s reasonable assumptions, estimates, expectations, analyses and opinions,
which are based on management’s experience and perception of trends, current conditions
and expected developments, and other factors that management believes are relevant an d
reasonable in the circumstances, but which may prove to be incorrect. Assumptions have
been made regarding, among other things, the price of iron, titanium, vanadium and other
metals; no escalation in the severity of the COVID -19 pandemic; costs of explo ration and
development; the estimated costs of development of exploration projects; Temas Resources’
ability to operate in a safe and effective manner and its ability to obtain financing on
reasonable terms.
These statements reflect Temas Resources’ respec tive current views with respect to future
events and are necessarily based upon a number of other assumptions and estimates that,
while considered reasonable by management, are inherently subject to significant business,
economic, competitive, political and social uncertainties and contingencies. Many factors, both
known and unknown, could cause actual results, performance or achievements to be
materially different from the results, performance or achievements that are or may be
expressed or implied by such forward‐looking statements or forward-looking information and
Temas Resources has made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: the Company’s dependence on one mineral
project; precious metals price volatility; risks associated with the conduct of the Company’s
mining activities in Quebec; regulatory, consent or permitting delays; risks relating to reliance
on the Company’s management team and outside contractors; risks regarding mine ral
resources and reserves; the Company’s inability to obtain insurance to cover all risks, on a
commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to
generate sufficient cash flow from operations; risks relating to project financing and equity
issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of
reserves and resources, metallurgical recoveries and capital and operating costs of such
projects; contests over title to properties, p articularly title to undeveloped properties; laws
and regulations governing the environment, health and safety; the ability of the communities
in which the Company operates to manage and cope with the implications of COVID -19; the
economic and financial im plications of COVID -19 to the Company; operating or technical
difficulties in connection with mining or development activities; employee relations, labour
unrest or unavailability; the Company’s interactions with surrounding communities and
artisanal miner s; the Company’s ability to successfully integrate acquired assets; the
speculative nature of exploration and development, including the risks of diminishing
quantities or grades of reserves; stock market volatility; conflicts of interest among certain
directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and
the factors identified under the caption “Risk Factors” in Temas Resources’ management
discussion and analysis. Readers are cautioned against attributing undue certainty to forward‐
looking statements or forward-looking information. Although Temas Resources has attempted
to identify important factors that could cause actual results to differ materially, there may be
other factors that cause results not to be anticipated, estimated or intended. Temas Resources
does not intend, and does not assume any obligation, to update these forward ‐looking
statements or forward -looking information to reflect changes in assumptions or changes in
circumstances or any other events aff ecting such statements or information, other than as
required by applicable law.