VANCOUVER, July 24, 2018 /CNW/ - BeMetals Corp. ("BeMetals" or the "Company") (TSXV: BMET) is pleased to announce the completion of its qualifying transaction (the "Qualifying Transaction") under the policies of the TSX Venture Exchange (the "Exchange"). BeMetals common shares will graduate from the NEX to Tier 2 of the Exchange and trading in the common shares of the Company is expected to resume on the Exchange at market open on Wednesday, July 25, 2018 under its symbol "BMET".
The Qualifying Transaction
In February 2018, further to a November 2017 letter agreement, the Company confirmed the agreement (the "Agreement") with Copper Cross Zambia Limited and its parent company Manica Zambia Limited (together the "Vendor") to acquire up to a 72% interest in the Pangeni copper project ("Pangeni Copper Project") located on the western extension of the Zambian Copperbelt (see February 27, 2018 news release for details). The initial 67.5% interest can be acquired by the Company paying US$300,000 cash, issuing a total of 500,000 common shares, incurring US$2.5 million in exploration work, all prior to the second anniversary, and then completing a preliminary economic assessment and making a further cash payments of US$1,150,000 prior to the fifth anniversary. The Company may acquire an additional 4.5% interest by funding a feasibility study on the project and making a further cash payment of US$750,000. The US$2.5 million to be spent on exploration work is an obligation under the Agreement and must either be satisfied by expenditures on exploration activities or by cash payments to the Vendor. The initial 100,000 common shares were issued to the Vendor on closing of the Qualifying Transaction. BeMetals benefits from the support of strong technical and local Optionors on this project, Copper Cross Zambia and Pangeni Mineral Resources Limited.
In connection with the Qualifying Transaction, on July 19, 2018, the Company closed its upsized non-brokered private placement (the "Financing") of 11,200,000 common shares of the Company at a price of $0.20 per share for gross proceeds of $2,240,000 (see July 19, 2018 news release for details).
After giving effect to the Qualifying Transaction and the Financing, there are 68,098,577 common shares of the Company outstanding on a non-diluted basis and 73,618,577 common shares outstanding on a fully diluted basis. Of these, an aggregate 15,538,574 common shares, of which 14,930,000 are held by Principals of the Company, will be held in escrow and will be released from escrow as follows: 10% upon issuance of the Exchange bulletin granting final approval for the Transaction (the "Final Bulletin"); 15% on the date that is six months after the date of the Final Bulletin; 15% on the date that is 12 months after the date of the Final Bulletin; 15% on the date that is 18 months after the date of the Final Bulletin; 15% on the date that is 24 months after the date of the Final Bulletin; 15% on the date that is 30 months after the date of the Final Bulletin; and 15% on the date that is 36 months after the date of the Final Bulletin.
Following the Qualifying Transaction, the board of directors remains comprised of John Wilton, Clive Johnson, Roger Richer, Tom Garagan, and Kristen Reinertson. Mr. Wilton continues as the Company's President and CEO and Ms. Reinertson as the Company's CFO and Corporate Secretary.
Readers are referred to the filing statement of BeMetals dated July 18, 2018 (the "Filing Statement") which was prepared in accordance with the requirements of the Exchange and filed under the Company's issuer profile on SEDAR at www.sedar.com.
Pangeni Copper Exploration Project & Work Program
The Pangeni Copper Project is located on the western extension of the Zambian Copperbelt, within the Lufilian Arc, underlain by Katangan Supergroup metasediments which are covered by a thin veneer of Kalahari sands. The Sentinel, open pit, Copper Mine is operated by First Quantum Minerals some 130 kilometres to the northeast of the Pangeni Copper Project. A number of other major international mining companies have identified this region of the Zambian Copperbelt to be prospective for the discovery of tier one copper mines and are conducting exploration field work.
An independent technical report (the "Technical Report") has been completed by African Mining Consultants Limited in accordance with the requirements of National Instrument 43-101 and filed under the Company's issuer profile on SEDAR at www.sedar.com. The Technical Report concludes the property remains at an early exploration stage with only five boreholes having been completed to date (three boreholes at the Central Target and two at the Southwest Target). All five holes intersected hypogene copper mineralisation. The most significant intersections included borehole CT1: 6.1m @ 0.34%TCu (from 39m depth) and borehole SW1: 5.5m @ 0.48%TCu (from 142.5m depth). At the Central Target the drilling results indicate there is associated anomalous cobalt with the copper intersections, CT1 returning: 6.1m @ 320ppm Co (for the same copper intersection as quoted above). These boreholes results provide encouraging proof of concept for the geological models generated for the property, and support the strategy for further exploration.
The Pangeni Copper Project property is geologically prospective for the following deposit types; Basement-hosted Cu (analogues: the Lumwana Deposit, Nyungu Prospect), Sediment-hosted stratiform Cu-Co (analogues: Nchanga, Konkola, Nkana, and Mufulira Deposits), the Domes Region Deposits e.g. Sentinel, and Kansanshi and DRC Copperbelt Deposits e.g. Lonshi, Frontier, Kamoa-Kakula).
The next phase of exploration work will include the drilling of air-core boreholes (approximately 40-50m deep) to test for potential, geochemical anomalies, associated with mineralised extensions to the Central and Southwest Targets, under Kalahari Group cover units. In addition initial priority targets, identified during previous exploration programs, are to be tested. An orientation air-core program will be completed to test the applicability of this technique in this specific area. This program will total approximately 2,400m of air-core drilling. Based upon an assessment of applicability of this drilling method in the area, and results from the air-core geochemical sampling further exploration will be motivated as appropriate.
About BeMetals Corp.
BeMetals is driving its growth strategy towards the goal of becoming a significant base metal producer through the acquisition of quality exploration, development and production stage base metals projects. This strategy is directed by the Board, key members of which have an extensive, proven track record in delivering considerable value in the mining sector through the discovery and building of mines.
On Behalf of BeMetals Corp.
"John Wilton"
John Wilton
CEO, President and Director
AI
