Trilogy Metals announces South32 to fund US$10 Million 2018 Program and Budget for the Bornite Project
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News Release
Trilogy Metals announces South32 to fund US$10 Million 2018
Program and Budget for the Bornite Project
December 14, 2017 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX,
NYSE-MKT: TMQ) (" Trilogy ” or “Trilogy Metals ”) is pleased to announce that South32
Limited (ASX/JSE/LSE: S32) (“ South32 ”) has committed to fund the US$10 million 2018
program and budget for the Bornite Project. The funds, which represent the second tranche of
US$10 million, maintains the Option Agreement (see below) in good standing, and will be
transferred before January 31, 2018. The 2018 program will include in-fill and off-set drilling
to better define and expand the high grade copper resources at Bornite. The 2018 Program
was recently approved by the joint Trilogy-South32 Technical Committee.
Trilogy Metals recently completed the first US$10 million exploration drill program at Bornite
that was funded by South32. The 2017 program had been previously approved by the joint
Technical Committee and was focused on drilling the extensions of mineralization last drilled
by the Company in 2013. Results of this year’s exploration program at the Bornite Project
were released by Trilogy Metals on September 18, 2017 (https://Trilogy PR Sep 18 2017 ) and
December 4, 2017 (https://Trilogy PR Dec 4 2017 ). The 2017 drilling program doubled the
size of the known mineralized footprint and continues to demonstrate that the high-grade
Bornite copper resource system is open to further expansion.
Agreement
On April 10, 2017 Trilogy announced it had entered into an agreement with South32 whereby
Trilogy has granted South32 an option to form a 50/50 joint venture with respect to Trilogy’s
Alaskan assets, known collectively as the Upper Kobuk Mineral Projects (“UKMP”), which
includes the Arctic and Bornite Projects, the Exploration and Option to Lease Agreement with
NANA Regional Corporation, Inc. (“NANA”), and the remainder of Trilogy’s state mining claims
along the 100km volcanogenic massive sulphide belt. South32 must contribute a minimum of
US$10 million each year, for a maximum of 3 years, to keep the option in good standing
(“Initial Funding”). South32 may exercise its option at any time to form the 50/50 joint
venture (“JV”). To subscribe for 50% of the JV, South32 will contribute a minimum of US$150
million, plus any amounts Trilogy spends at the Arctic Project over the initial three years to a
maximum of US$5 million per year (the “Subscription Price”), less an amount of the Initial
Funding contributed by South32 (https://Trilogy PR April 10 2017 ).
About Trilogy Metals
Trilogy Metals Inc. is a metals exploration company focused on exploring and developing the
Ambler mining district located in northwestern Alaska. It is one of the richest and most-
prospective known copper-dominant districts located in one of the safest geopolitical
jurisdictions in the world. It hosts world-class polymetallic VMS deposits that contain copper,
zinc, lead, gold and silver, and carbonate replacement deposits which have been found to host
TSX, NYSE American
Symbol: TMQ
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high grade copper mineralization. Exploration efforts have been focused on two deposits in the
Ambler mining district - the Arctic VMS deposit and the Bornite carbonate replacement deposit.
Both deposits are located within the Company's land package that spans approximately
143,000 hectares. The Company has an agreement with NANA Regional Corporation, Inc., a
Regional Alaska Native Corporation that provides a framework for the exploration and
potential development of the Ambler mining district in cooperation with local communities. Our
vision is to develop the Ambler mining district into a premier North American copper producer.
Company Contacts
Rick Van Nieuwenhuyse Elaine Sanders
President & Chief Executive Officer Vice President & Chief Financial Officer
1-604-638-8088 or 1-855-638-8088
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Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking information” and "forward-looking
statements” (collectively "forward-looking statements”) within the meaning of applicable
Canadian and United States securities legislation including the United States Private Securities
Litigation Reform Act of 1995. All statements, other than statements of historical fact, included
herein, including, without limitation, the future operating or financial performance of the
Company, interpretation of drill results, planned expenditures and the anticipated activity at
the UKMP Projects, are forward-looking statements. Forward-looking statements are
frequently, but not always, identified by words such as "expects”, "anticipates”, "believes”,
"intends”, "estimates”, "potential”, "possible”, and similar expressions, or statements that
events, conditions, or results "will”, "may”, "could”, or "should” occur or be achieved. These
forward-looking statements may include statements regarding perceived merit of properties;
exploration plans and budgets; mineral reserves and resource estimates; work programs;
capital expenditures; timelines; strategic plans; market prices for precious and base metals;
or other statements that are not statements of fact. Forward-looking statements involve
various risks and uncertainties. There can be no assurance that such statements will prove to
be accurate, and actual results and future events could differ materially from those anticipated
in such statements. Important factors that could cause actual results to differ materially from
the Company's expectations include the uncertainties involving the need for additional
financing to explore and develop properties and availability of financing in the debt and capital
markets; uncertainties involved in the interpretation of drilling results and geological tests and
the estimation of reserves and resources; the need for cooperation of government agencies
and native groups in the development and operation of properties as well as the construction
of the access road; the need to obtain permits and governmental approvals; risks of
construction and mining projects such as accidents, equipment breakdowns, bad weather,
non-compliance with environmental and permit requirements, unanticipated variation in
geological structures, metal grades or recovery rates; unexpected cost increases, which could
include significant increases in estimated capital and operating costs; fluctuations in metal
prices and currency exchange rates; and other risks and uncertainties disclosed in the
Company’s Annual Report on Form 10-K for the year ended November 30, 2016 filed with
Canadian securities regulatory authorities and with the United States Securities and Exchange
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Commission and in other Company reports and documents filed with applicable securities
regulatory authorities from time to time. The Company's forward-looking statements reflect
the beliefs, opinions and projections on the date the statements are made. The Company
assumes no obligation to update the forward-looking statements or beliefs, opinions,
projections, or other factors, should they change, except as required by law.
Cautionary Note to United States Investors
The Bornite Technical Report have been prepared in accordance with the requirements of the
securities laws in effect in Canada, which differ from the requirements of U.S. securities laws.
Unless otherwise indicated, all resource and reserve estimates included in this press release
have been prepared in accordance with National Instrument 43-101 Standards of Disclosure
for Mineral Projects ("NI 43-101”) and the Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a
rule developed by the Canadian Securities Administrators which establishes standards for all
public disclosure an issuer makes of scientific and technical information concerning mineral
projects. Canadian standards, including NI 43-101, differ significantly from the requirements
of the United States Securities and Exchange Commission ("SEC”), and resource and reserve
information contained therein may not be comparable to similar information disclosed by U.S.
companies. In particular, and without limiting the generality of the foregoing, the term
"resource” does not equate to the term "reserves”. Under U.S. standards, mineralization may
not be classified as a "reserve” unless the determination has been made that the
mineralization could be economically and legally produced or extracted at the time the reserve
determination is made. The SEC's disclosure standards normally do not permit the inclusion of
information concerning "measured mineral resources”, "indicated mineral resources” or
"inferred mineral resources” or other descriptions of the amount of mineralization in mineral
deposits that do not constitute "reserves” by U.S. standards in documents filed with the SEC.
Investors are cautioned not to assume that any part or all of mineral deposits in these
categories will ever be converted into reserves. U.S. investors should also understand that
"inferred mineral resources” have a great amount of uncertainty as to their existence and
great uncertainty as to their economic and legal feasibility. Under Canadian rules, estimated
"inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies
except in rare cases. Disclosure of "contained ounces” in a resource is permitted disclosure
under Canadian regulations; however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves” by SEC standards as in-place tonnage and
grade without reference to unit measures. The requirements of NI 43-101 for identification of
"reserves” are also not the same as those of the SEC, and reserves reported by the Company
in compliance with NI 43-101 may not qualify as "reserves” under SEC standards. Accordingly,
information concerning mineral deposits set forth in this press release or the Bornite Technical
Report may not be comparable with information made public by companies that report in
accordance with U.S. standards.