TORONTO, May 2, 2016 /CNW/ - Sulliden Mining Capital
Inc. ("Sulliden" or the "Company") (TSX: SMC) has entered into
an option arrangement with First Quantum Minerals Ltd. ("First
Quantum") to acquire the past-producing Troilus Mine, located in
the Abitibi mining region of Quebec,
Canada.
Justin Reid, CEO and director of
Sulliden, commented, "This agreement is a step towards our strategy
of building a portfolio of mining projects alongside our portfolio
of investments. For over two years, we have been actively
evaluating and visiting projects in the Americas in search of the
right opportunity, and we believe there to be potential value in
the Troilus Project."
Peter Tagliamonte, Executive
Director of Sulliden, commented, "We have been reviewing the
potential of the Troilus project and after thorough due diligence
by our technical team, we look forward to moving ahead with more
detailed engineering studies. It is our belief that this
project has good mine development potential and exploration
potential in a friendly mining jurisdiction."
Sulliden has engaged Roscoe Postle Associates Inc. ("RPA") to
complete an updated mineral resource estimate for Troilus based on
the high quality historical drill data of the project. The
Company looks forward to announcing these results within the coming
month, before moving ahead with engineering and technical studies
to evaluate the economic viability of the project.
Option Agreement
A wholly owned subsidiary of Sulliden has entered into a
two-year option agreement with First Quantum with respect to the
Troilus Mine.
As a result of the arrangements, Sulliden will hold a two-year
option to purchase a 100% interest in the Troilus Mine. To
exercise the option under the First Quantum agreement, a minimum of
$1,000,000 must be spent on
engineering and technical studies to evaluate the economic
viability of the project. Upon signing, an initial cash
payment of C$100,000 was made to
First Quantum. In order to exercise the option and acquire
the Troilus Mine, an additional cash payment of C$100,000 will be made to First Quantum on the
first anniversary of the Agreement, and a final cash payment of
C$100,000 will be made on the date of
exercise of the Option. Additionally, a variable Net Smelter
Royalty (NSR) of 1.5% or 2.5% depending of the gold price being
more or less than $1,250/oz during
the reference period will be granted to First Quantum.
Sulliden intends to enter into a subsequent option agreement
with 251 Ontario Ltd ("251") whereby 251 would be able to acquire
40% of the Troilus mine and all associated properties with Sulliden
retaining the remaining 60% ("Joint-Venture").
Troilus Project Description & History
From 1997 to 2010 Inmet Mining Corporation ("Inmet") operated
the Troilus Mine, which produced in excess of 2,000,000 ounces of
gold and 70,000 tonnes of copper.
The Troilus property is located approximately 175 km by road
from the town of Chibougamau, Quebec,
Canada. The property consists of 81 mineral claims and one
surveyed mining lease that collectively cover approximately 4,700
hectares. The acquisition will include all infrastructure such as
roads, power lines, camp buildings, permitted tailings pond, and
associated water treatment facilities. The mill was sold and
removed during the first phase of reclamation.
Inmet commissioned the Troilus mill in 1996 and achieved
commercial production in April 1997
at a rate of 10,000 tonnes per day with recoveries of 86% gold and
90% copper and a concentrate grade of 18% copper, eventually
reaching a production milestone of 18,000 tonnes per day. First
Quantum acquired the Troilus property through its acquisition of
Inmet in 2013.
About Sulliden Mining Capital
Sulliden is a Canadian venture capital company focused on the
acquisition and development of quality mining projects in the
Americas, in addition to identifying opportunities for active
investments.
Sulliden Mining Capital Inc.
On behalf of the Board
"Justin Reid"
Chief Executive Officer & Director
Caution regarding forward-looking information:
This press release contains "forward looking information"
within the meaning of applicable Canadian securities legislation.
Generally, forward looking information can be identified by the use
of forward-looking terminology such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved" and includes plans
regarding the Troilus project, timetable to possible mineral
resource estimate, and the positive exercise of the option
agreement. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: general business, economic, competitive, geopolitical
and social uncertainties; the actual results of current exploration
activities; other risks of the mining industry and the risks
described in the public disclosure documents of the Company.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward
looking information. The Company does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
SOURCE Sulliden Mining Capital