Volatus Capital Corp. Acquires 7,470 Hectares in the Toodoggone Mining Camp Based on New Mdru Exploration Model
NEWS RELEASE
VOLATUS CAPITAL CORP. ACQUIRES 7,470 HECTARES IN THE TOODOGGONE MINING CAMP BASED ON NEW MDRU EXPLORATION MODEL
June 1, 2020: Vancouver, BC, Canada - Volatus Capital Corp. (CSE: VC) (the “Company”) is pleased to announce it has entered into an agreement to acquire a 100% interest, subject to a 1% net smelter returns royalty of which the Company may purchase 0.5% for $500,000 at any time, in the Compass Project for consideration of 3,200,000 common shares of the Company. The Compass Project is composed of six mineral claims encompassing a land area of approximately 7,470 hectares located in the resurgent Toodoggone Mining Camp in northwestern British Columbia.
In 2019, MDRU’s* “An Exploration Framework for Porphyry to Epithermal Transitions in the Toodoggone Mineral District” suggested relationships between epithermal-type deposits formed contemporaneously with pluton emplacement and porphyry type K-silicate alteration at depth. The transition to a porphyry center is further supported by the high concentrations of Cu, Mo, W, and Sn (which are typically enriched in the core of porphyry system) relative to Sb, As, Ag, Li and Tl (which are typically enriched in shallow level above porphyry systems). MDRU’s new framework clearly suggests the potential for exploration of porphyry-type copper gold mineralization in areas previously known for epithermal gold and silver mineralization.
*MDRU, the Mineral Deposit Research Unit of the University of British Columbia, is one of the most successful integrated mineral deposit and exploration research groups in the world.
Significant projects active in the Toodoggone region include Benchmark Metals Inc.’s Lawyer’s Gold and Silver project, Evergold Corp.’s Golden Lion project, Colorado Resources Ltd.’s Sofia project and Amarc Resources Ltd.’s Joy project. The Toodoggone region also hosts Lawyers, Kemess, Baker and Shasta historic mines.
Based on the above, the Company feels the Compass Project has the potential to host epithermal gold, porphyry copper type, skarn hosted base metals and precious metals.
Volatus President, Michael Collins, comments, “The Toodoggone District Compass Project has seen little geological work this century. New geological understanding, such as the delineation of the Kyba Red line and advances in exploration techniques, allows Volatus an opportunity to make discoveries that rival those of the Golden Triangle; home to the Red Chris, Brucejack and Eskay Creek mines. We are pleased to bring the Compass Project into our growing project portfolio.”
The Compass Project is located approximately 280 kilometers north of Smithers, British Columbia, and 36 kilometres north of the Sturdee River airstrip and from there by helicopter.
Geology
The area of the Compass Project is underlain by volcanic rocks and chemical sediments of both the Takla Group and the Hazelton Group. These two units are separated by a major north-south fault structure that runs through the valley occupied by Upper Belle and Midas Lake. An east-west fault along the northern part of the claims also separates the Takla rocks from Hazelton volcanics to the north. The Takla group rocks are comprised of limey sediments, laminated tuffaceous mudstones, tuffs, cherts and rhyolites that strike northwest. A biotite granodiorite stock intrudes these rocks resulting in skarn mineralization within the limey beds.
The vendor of the Compass Project is 1248623 BC Ltd., a private company owned and controlled by Emma Fairhurst, who subsequent to the transaction will own and control, directly and indirectly, 8,395,000 common shares of the Company representing 32.8% of the then issued and outstanding common shares of the Company. The transaction constitutes a “related party transaction” for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying upon exemptions from the requirement to obtain a formal valuation and seek minority shareholder approval for the acquisition on the basis that the fair market value of the vendor’s interest in the acquisition is less than 25% of the Company’s current market capitalization.
Technical disclosure in this news release has been reviewed and approved by Michael Collins, P. Geo. and President and Chief Executive Officer the Company, a Qualified Person as defined by National Instrument 43-101.
About Volatus Capital Corp.
The Company is focused on exploration and development of resources in gold and base metals and the green economy that have strong demand profiles.
We seek Safe Harbor.
ON BEHALF OF THE BOARD
“Michael Collins”
Michael Collins, President and CEO For additional information, contact Volatus at 604-681-3170
Forward-looking information Certain statements in this news release constitute “forward-looking” statements. These statements relate to future events or the Company’s future performance. All such statements involve substantial known and unknown risks, uncertainties and other factors which may cause the actual results to vary from those expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved. Actual results could differ materially from those anticipated due to a number of factors and risks. Although the forward- looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.