Xplore Resources Provides Update on the Diamond Mountain Transaction and Other Corporate Updates
Xplore Resources Provides Update on the
Diamond Mountain Transaction and Other
Corporate Updates
Toronto, Ontario--(Newsfile Corp. - August 16, 2022) -
Xplore Resources Corp
.
(TSXV: XPLR)
(
"Xplore"
or "the Company"
), announces that further to its news release of June 7, 2022, it has
reached an agreement with Revival Gold Inc. ("Revival") to extend the "Outside Date" noted in the Mining
Property Purchase Agreement with Revival dated June 6, 2022 (the "Purchase Agreement") to
September 30, 2022. All other terms and conditions of the Purchase Agreement remain unchanged.
The Diamond Mountain phosphate project ("
Diamond Mountain
") is a 547-hectare (
"ha"
) State Mining
Lease (
"State Lease"
) with a historic measured and indicated resource estimated to be 26.8 million
tonnes ("
Mt
") averaging 19.67% P
2
O
5
in addition to an inferred resource estimated at 23.1 Mt averaging
19.67% P
2
O
5
. The mineral resource estimate is supported by the Technical Report titled "Technical
Report, Diamond Mountain Phosphate Project, Uintah County, Utah" authored by L.D.Henchel, P.Geo,
P.G., with an effective date of September 11, 2014. The Technical Report is available on SEDAR under
Revival's filings.
Terms of the Purchase Agreement:
Under the terms of the Purchase Agreement, which is subject to TSX Venture Exchange (the
"Exchange"
) approval, Xplore may acquire up to a 51% interest in the Diamond Mountain phosphate
project and may be earned with the following terms.
C$250,000 cash payment on closing of transaction (
"Closing"
);
C$250,000 cash payment on the first anniversary of Closing; and
Issuance to Revival of such number of common shares in the capital of Xplore (the
"Payment Shares"
)
as is equal to 19.9% of Xplore's issued capital. Closing of transaction is subject to the completion of a
minimum C$5 million financing by Xplore, terms of which will be announced by way of a subsequent
news release.
Wes Hanson, President and CEO of Xplore notes: "We continue to believe Diamond Mountain
represents a rare opportunity to acquire and develop a high value phosphate resource in the continental
United States. The ease of access, surrounding infrastructure, demonstrated resource value and strong
demand growth in the phosphate sector all suggest that Diamond Mountain represents a value creation
opportunity. We believe general market conditions held back investment in our proposed financing. Our
financial advisors have suggested that market sentiment is becoming increasingly positive, and that we
should be able to complete the financing and close the transaction with Revival Gold by the revised
Outside Date."
Issuance of the Payment Shares and its underlying securities shall be subject to the receipt of regulatory
approvals including, without limitation, the final approval of the Exchange and other conditions.
Perrigo Lake
The Company further announces that it has issued 120,000 common shares to Solstice Gold Corp.
pursuant to an option agreement announced on August 20, 2021 with respect to the Perrigo Lake
Property (see news release August 21, 2021 for further information).
Qualified Person
Mr. Wes Hanson, P. Geo., President & CEO of Xplore and registered in the Province of Ontario is the
"Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101") and is responsible for the technical contents of this news release and has approved the
disclosure of the technical information contained herein.
About Xplore Resources (TSXV: XPLR)
Xplore Resources is a Toronto based mining exploration company listed on the TSX Venture Exchange
under symbol XPLR and is focused on the acquisition and development of copper and gold projects in
the Americas. The Company is led by a highly experienced management team and is comprised of
industry experts with executive and senior management experience in geology, banking, private equity,
investor relations and law.
ON BEHALF OF THE BOARD
"Wesley C. Hanson"
President & CEO
For further information, please contact:
Phone: +1 647-362-9675
Email:
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.
ANY SECURITIES REFERRED TO HEREIN WILL NOT BE REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), AND MAY NOT BE OFFERED OR
SOLD IN THE UNITED STATES OR TO A U.S. PERSON IN THE ABSENCE OF SUCH
REGISTRATION OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
1933 ACT.
THE TSX VENTURE EXCHANGE INC. HAS IN NO WAY PASSED UPON THE MERITS OF THE
PROPOSED TRANSACTION AND HAS NEITHER APPROVED NOR DISAPPROVED THE
CONTENTS OF THIS PRESS RELEASE.
Notice on forward-looking statements:
Information set forth in this news release contains forward-looking statements. These statements
reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees
of future performance. Xplore cautions that all forward-looking statements are inherently uncertain,
and that actual performance may be affected by a number of material factors, many of which are
beyond Xplore's control. Such factors include, among other things: risks and uncertainties relating to
Xplore's ability to complete the proposed Transaction; and other risks and uncertainties, including
those to be described in the Filing Statement to be filed by Xplore on
SEDAR.com
. Accordingly,
actual, and future events, conditions and results may differ materially from the estimates, beliefs,
intentions, and expectations expressed or implied in the forward-looking information. Except as
required under applicable securities legislation, Xplore undertakes no obligation to publicly update or
revise forward-looking information.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/134044