Volatus Capital Corp. announces closing of Acquisition of Split Dome Copper Project Near Hazelton, British Columbia and Reviews Red Metal Ridge Exploration Strategy
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NEWS RELEASE
VOLATUS CAPITAL CORP. ANNOUNCES CLOSING OF ACQUISITION OF SPLIT DOME COPPER PROJECT NEAR HAZELTON, BRITISH COLUMBIA AND REVIEWS RED METAL RIDGE EXPLORATION STRATEGY
Vancouver, B.C. – February 6, 2020 ‐ Volatus Capital Corp. (CSE: VC) (the “Company”) is pleased to announce as a follow-up to its news release dated February 3, 2020 the closing of the acquisition of a 100% interest, subject only to a 0.25% net smelter return royalty, in the Split Dome copper project (the “Property”) located near Hazelton, British Columbia. The Property was acquired from Crest Resources Inc. for the purchase price of (i) 3,000,000 common shares of the Company (the “Shares”) at the deemed price of $0.06 per Share, and (ii) 1,500,000 Share purchase warrants (“Warrants”) exercisable at a price of $0.10 per Share for a period of 36 months.
Split Dome Copper Project
The Property consists of four claim groups totalling 319 claims for 5,840 hectares located 55 km northeast of Hazelton, British Columbia on the west side of the Babine Valley. The Property can be accessed by active forestry roads on the northern and southern sides of the claim group, which in turn are accessed two turnoffs north and south of Smithers on Highway 16. Lodges and camp areas are found to the southsouth east in the Fort Babine area.
The main target is a dome feature which is bifurcated by two north-south magnetic lows and has the overall magnetic signature that is indicative of an intrusive host rock but has been mapped as a sedimentary rock with a small window of intrusive rocks mapped on the north side of the magnetic signature. The regional stream sampling downstream of the Property claims indicate second-order copper in silt anomalies and only one sample has been taken in the target area.
Structurally, the target lays on the southwest side of a northwest - southeast regional scale strike slip fault that locally follows the Babine river. The target is nestled in a dilational jog in the fault geometry. This dilational jog gives room for a significant sized granitic intrusive body to rise and become emplaced in the near surface. Continued activity in the dilational jog in the fault allows for the long-term structural development and the open spaces required for copper mineralization. The Lone Mountain/Mount Horetzky copper showing is located to the north west on the opposite side of the regional fault structure and demonstrates the pregnant nature of the intrusive system. The Property has the signature of a large intrusive body and has the potential to host a significant copper resource.
The Company is planning an initial exploration program for the Property with additional details to follow.
Michael Collins, CEO, P.Geo, and Director of the Company, is the Qualified Person for the Company, and approves the technical content of this news release.
Crest Resources Inc. is an insider of the Company. The above 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 Crest Resources Inc. interest in the Acquisition is less than 25% of the Company’s current market capitalization.
Red Metal Ridge
In consideration of the changing market conditions and opportunities presented to the Company, Management is in the process of reviewing the exploration plans and development concepts for the Red Metal Ridge Exploration Project on North Vancouver Island optioned from Rich River Exploration Ltd.
FOR FURTHER INFORMATION CONTACT:
Michael Collins President and CEO Volatus Capital Corp.
Telephone: 604-764-7094
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
Forward-Looking Statements
This news release contains certain forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of the Company’s exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.