Vatic Signs MOU with Falcon GOLD FOR the Wabunk BAY Cobalt Property
VATIC VENTURES CORP.
VATIC VENTURES CORP.
1500-1040 WEST GEORGIA STREET
VANCOUVER, BC V6E 4H1
CANADA
PHONE: (778) 373-6972
FAX: (604) 689-1288
EMAIL: [email protected]
VATIC SIGNS MOU WITH FALCON GOLD FOR THE WABUNK BAY COBALT PROPERTY
Vancouver, BC, June 28, 2018 – Vatic Ventures Corp. (TSXV: VCV, OTCBB: VTTC F and
Frankfurt: V8V3) (the “Company” or “Vatic”) is pleased to announce that it has signed a memorandum
of understanding (the “MOU”) with Falcon Gold Corp. (“Falcon”) for the Wabunk Bay cobalt claims (the
“Property”) adjoining Uchi mine, northwestern Ontario, Canada. Vatic has the right to earn a 60% interest
from Falcon (the “Option”) by meeting certain expenditure and consideration requirements on the
Property.
Falcon has an underlying agreement with the property owner whereby it has the right to acquire a 100%
interest in 2 (cobalt, copper, nickel & PGE’s) mining claims in Earngey Township in the Kenora District
of northwestern Ontario. The claims comprise 19 claim units and cover an area of approximately 304
hectares (see the Falcon press release of June 13, 2018). The Wabunk Bay property is highly prospective
for cobalt, and the Company believes that it can explore and develop potential in a short timeframe there.
In accordance with the terms of the MOU Vatic can exercise the Option by:
a) paying to Falcon a $25,000 deposit;
b) issuing to Falcon an initial 200,000 units at $0.18 per unit, each unit consisting of one common
share plus a warrant to purchase a further common share for $0.25 exercisable for two years (the
“Initial Units”);
c) completing exploration expenditures of $750,000 on the Property by June 27, 2019;
d) issuing by June 27, 2019 an additional 200,000 units on the same terms as the Initial Units; and
e) paying to Falcon an additional $275,000 by June 27, 2019.
The Property is subject to a 2 kilometer area of interest and is subject to a 1% NSR in favor of the
underlying owner which can be purchased for $1 million any time before commercial production. Upon
exercise of the Option the Company and Falcon will form a 60/40 joint venture for further development
of the Property subject to the right of the Company to acquire Falcon’s 40% interest by issuing shares of
the Company to Falcon based on a valuation to be conducted by at least three valuators.
Wabunk Bay Sulphide Mineralization
In 1957, the Ontario Department of Mines reported in its Mineral Resource Circular No. 2 (“MRC 2”):
“The showings occur entirely within a coarse-grained hornblende gabbro cutting greenstone, sediments,
and various intrusive rocks. The gabbro is 200 feet wide and has a maximum width of 300 feet. The
southern 1,000 feet of this body strike north then swing to the northwest for an additional length of 1,800
feet. Chalcopyrite, pyrrhotite, and pyrite occur where the gabbro is sheared and especially at the contacts
of narrow diabase dikes, which strike north to northeast and are younger than the gabbro.”
The MRC 2 further reported on the Wabunk Bay mineralized zones:
“The main showing lies in the north-south portion of the gabbro, strikes near north, and is about 300 feet
long; although mineralization is not continuous, it is found along a length of 600 feet. The average width
of mineralization cut in five drill holes is 21 feet. An 18-foot chip sample ran 1.08 percent copper and
0.40 percent nickel. A 22-foot chip sample ran 0.44 percent copper and 0.12 percent nickel. The best 25
feet of drill core assayed 0.62 percent copper and 0.04 percent nickel. Core assays gave as high as 0.03
percent cobalt.”
Wabunk Bay Exploration History
The history of exploration work in the area of the Wabunk Bay Cobalt Claims is summarized as follows:
• 1941 – Sulphide mineralization is discovered by Mike Colberg.
• 1955 – A prospector, Joe Kolak, restaked the showings and optioned the property to Campbell Island
Mines and Exploration Ltd. Work completed included geophysical surveys, trenching and 6 diamond-
drill holes, totaling 390 feet in 1956. Surface samples assayed 0.33% Co over 1.5m and 0.15% Co
over 7.6m.
• 2003 – Jilbey Gold Exploration Ltd. carried out a large regio nal reconnaissance program in the
greenstone belts south and east of Red Lake, Ontario. The Wabunk Bay area was covered by an
airborne geophysical survey that identified two magnetic and conductive anomalies.
About Cobalt
Demand for Cobalt, a key ingredient in Lithium-ion batteries, is expected to grow by 40% in 2018 mainly
as a result of the adoption of electric and hybrid vehicles in Europe, China, the US and elsewhere; this
growth in demand comes on top of significant growth in the recent past that already caused significant
price increases for the metal during 2017. With the main source of Cobalt being the African Copper belt
Countries Zambia and the DRC, countries where a multitude of established companies and juniors have
already staked their claims, any diversification in resource opportunities is welcome. The Company
expects the Wabunk Bay project to be such an opportunity.
Qualified Person
The technical content of this news release has been reviewed and approved by Mr. Pieter J. Bakker, MSc.
FAusIMM, who is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure
for Mineral Projects.
ON BEHALF OF THE BOARD OF DIRECTORS
Nasim Tyab, Director
604-306-2886
ABOUT VATIC VENTURES CORP.
Vatic Ventures Corp. (www.vaticventures.com) is a junior exploration company and continues to assess
new opportunities and prospects.
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Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. “Neither the TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release." The information contained herein contains "forward -looking statements" within the
meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of
management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions,
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that could cause actual events or results to differ from those reflected in the forward-looking statements. Investors are cautioned
against attributing undue certainty to forward-looking statements. 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. Actual
events or results could differ materially from the Company's expectations or projections.