Xplore Resources to Acquire 51% Interest in the Diamond Mountain Phosphate Project
Xplore Resources to Acquire 51% Interest in
the Diamond Mountain Phosphate Project
Toronto, Ontario--(Newsfile Corp. - June 7, 2022) -
Xplore Resources Corp
.
(TSXV: XPLR)
(
"Xplore
or the "Company"
), is pleased to announce that it has entered into a definitive agreement (the
"Agreement"
) to acquire a 51% interest in the Diamond Mountain phosphate project (
"Diamond
Mountain"
or
the
"Project"
) from Revival Gold Inc. ("
Revival"
). The Project is located approximately
30 kms north-east of Vernal, Utah. The remaining 49% interest is held by Utah Mineral Resources LLC.
(
"UMR"
).
Diamond Mountain is a 547-hectare State Mining Lease (
"State Lease"
) that offers an existing
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 issuer profile at
www.sedar.com
.
Diamond Mountain is strategically situated adjacent to Simplot Phosphates, LLC, a current producer of
high-quality phosphate concentrates which are transported by pipeline to their fertilizer processing facility
in Rock Springs, Wyoming where it is converted into various fertilizer products.
Phosphate mineralization at Diamond Mountain was originally identified by US Steel Corp. in the mid
1960s. US Steel completed 23 diamond drill holes in and surrounding the Diamond Mountain claims. In
2014, Revival (formerly Strata Minerals Inc.) completed 14 additional drill holes, most of which are
collared within the acquired mineral lease. This drilling forms the basis of the mineral resource estimate
described in the previously noted Technical Report. 100% of the currently identified mineral resource
falls within the existing state mining lease which is administered by the State of Utah School and
Institutional Lands Administration ("
SITLA
") (Ref. Figure 1.0).
Terms of the Agreement:
Under the terms of the 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 the transaction (
"Closing"
); and
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 upon completion of the financing as
noted below; and
Closing of the transaction is subject to the completion of a minimum C$5 million financing by
Xplore. Further details of the financing will be announced by Xplore in a subsequent news release.
Closing of transaction is expected to be completed by the end of June 2022.
A financial advisory fee to an arms' length party consisting of 2,000,000 shares of Xplore will be issuable
by Xplore as consideration for introducing Xplore to Revival and for other financial advice provided in
connection with the acquisition, upon completion of the purchase of Revival's interest in Diamond
Mountain and subject to the approval of the Exchange.
Wes Hanson, President and CEO of Xplore, notes: "We are very pleased to have reached an
agreement with Revival to acquire an initial 51% interest in the Diamond Mountain phosphate project.
Our financial advisors suggest strong underlying fundamentals in phosphate supply and demand with
projected long term demand growth of at least 2% per annum solely based on agricultural demand. This
is one of the top ten undeveloped phosphate projects in the world that is not owned by a major fertilizer
producer. Located in the state of Utah, in a resource-focused economic enclave where phosphate ores
have been continuously mined since the 1960s made this a compelling acquisition to consider. We see
an opportunity to rapidly and cost effectively convert the currently identified inferred resource to the
measured and indicated classification through systematic exploration drilling. We believe Diamond
Mountain offers both short and long term value creation for our shareholders, especially in light recent
disruptions in global phosphate deliveries and a renewed increase in demand due to the resurgence of
lithium-iron-phosphate 'LFP' batteries for the burgeoning electric vehicle market."
Issuance of the Payment Shares shall be subject to the receipt of regulatory approvals including, without
limitation, the final approval of the Exchange.
Revival Gold acquired its 51% interest in Diamond Mountain for exploration expenditures totaling
approximately C$1.2 million through a joint venture earn-in agreement with Utah Minerals resources LLC
in December 2014.
Figure 1.0 - Current Mineral Resource - Diamond Mountain Project
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/7519/126692_948f6959941e1a7d_002full.jpg
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 mineral 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.
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.
Additional disclosure of the Company's financial statements, technical reports, material change reports,
news releases and other information can be obtained on SEDAR at
www.sedar.com
.
ON BEHALF OF THE BOARD
"Wesley C. Hanson"
President & CEO
For further information, please contact:
Phone: +1 647-202-7686
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.
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.
###
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