|Wed Jul 5, 2017|
Century Energy Announces Letter Of Intent To Acquire Korn Kob Copper Property And Provices Update On Acquisition Of Guyana Project
|Vancouver, British Columbia -- Century Energy Ltd. (NEX: CEY.H) ("Century" or the "Company") is pleased to announce that it has entered into a letter of intent dated June 30, 2017 to acquire all of the issued and outstanding shares of 1116459 B.C. Ltd., a private British Columbia company that holds the right to acquire a 100% interest in the Korn Kob copper-gold property located in Pima County, Arizona.|
Pursuant to the letter of intent, Century is proposing to acquire the Korn Kob Property from the shareholders of 1116459 BC in consideration of the payment of USD $2 million in cash payable over 3 years, and the issuance of 22 million shares over 3 years as follows; 10 million shares upon closing, 4 million shares on the first anniversary, 4 million shares on the second anniversary, and 4 million shares on the third anniversary. The shares are proposed to be issued at a deemed price of $0.20 per share. The company has previously announced its intention to complete a concurrent private placement financing for proceeds of no less than $5 million (December 19, 2016 news release), and the proceeds of that financing will be applied in part to fund part of the cash acquisition payments for the Korn Kob Property.
Closing of the Transaction is subject to a number of conditions including the parties entering into a definitive agreement, TSX Venture Exchange approval, completion of technical and legal due diligence, and completion of the concurrent private placement. The transaction was negotiated at arm's length.
The Company proposes to complete the acquisition of the Korn Kob property concurrently with the previously-announced acquisition of the Tassawini property. A summary of the Korn Kob property is below, followed by an update on the proposed Tassawini Project acquisition. The transactions will constitute a reverse takeover of Century under the policies of the TSX Venture Exchange.
Korn Kob Property
The Korn Kob copper oxide project is in the Santa Catalina Mountains, Pima County, AZ, 20 miles (32 km) northeast of Tucson, and 15 miles (24 km) south of San Manuel. The project comprises 36 unpatented lode claims covering approximately 760 acres (307.6 hectares).
Various companies have explored the property. Earliest work, circa 1910 to 1916, was by Korn Kob Mining Company that completed a 130 foot (40 meters) shaft and 3,900 feet (1,189 meters) of drifts on two levels. Most of the exploration on the property was completed during the 1970's and 1980's by companies including Keystone Minerals, Inc., Essex International, Inc., and Budge Mining Company. Historical data includes over 160 drill holes, drilling logs, assays, geological models, geophysical surveys, water studies, and metallurgical test work.
Copper mineralization is hosted in a replacement skarn within Paleozoic limestone, dolomite, and marble, which overlie the Catalina granite-gneiss metamorphic core complex. Massive, brownish-red garnetite skarn with lesser quartz, magnetite, hematite, biotite, actinolite, tremolite and diopside replace marbles and limestones of the Devonian Martin and the Mississippian Escabrosa formations. The mineralization comprises cupriferous iron oxide and chrysocolla with minor tenorite. Copper is evenly distributed throughout the skarn, and minor silver and zinc are locally present. The skarn is exposed in the South Pit, the largest and most explored area, and also in the North Pit and in Donovan's Camp areas.
Several historical tonnage and grade estimates were completed based on the available drill hole data. The latest is tabulated in the table below. These estimates are historical, the categories used do not conform to the CIM definitions for current resources, and they are not supported by a current technical report. Because necessary work to verify the historical estimates as current estimates under NI 43-101 has not been done by a qualified person, the historical estimates should not be relied upon. Additional drilling is required to verify the historical work.
Mountain States Research & Development completed initial metallurgical test work comprising column leach tests in 1990 on bulk sample material from a road cut in the South Pit area. Results were not favourable, and the metallurgical test work was repeated with agglomerated material that produced better results. Additional work by Mountain States Research & Development, using drill core from the same area, resulted in a copper recovery of about 73% to 75% and acid consumption of about five to eleven pounds per ton. This test work is historical and should not be relied upon. Additional test work is needed to determine if agglomeration is necessary and to verify recoveries and acid consumption.
The Korn Kob project is fully permitted to drill 44 Core and RC holes to verify past drilling, provide material for metallurgical test work, and explore for additional mineralization.
Technical information in this news release on the Korn Kob property has been reviewed and approved by Dale A. Sketchley, M.Sc., P.Geo., a member of The Association of Professional Engineers and Geoscientists of British Columbia and a Qualified Person under National Instrument 43-101. Mr. Sketchley is a consultant to the Company.
Update on Acquisition of Tassawini Project, Guyana
The Company is completing various conditions set out by the Exchange in order to meet the listing requirements. To that end, the Company has engaged Paul Cowley, P. Geo., to complete a N43-101 technical report on the Tassawini Project. The Company anticipates to complete the acquisition of the Tassawini concurrently with the Korn Kob property.
The Company announces the resignation of Michael Thomson as CEO and Director. John Anderson will continue in the role of CEO and President.
For more information, contact:
President and Director
Telephone: (604) 218-7400
Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable, disinterested shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Century Energy Ltd. should be considered highly speculative.
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 news release.
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