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Royal Coal Focuses on EV Metals Mineral Exploration
Toronto, Ontario–(Newsfile Corp. – September 29, 2022) – Royal Coal Corp. (the “Company“) is pleased to announce that it has entered into an option agreement (the “Option contract“) to acquire a 100% undivided interest in the Poisson Blanc nickel-copper-cobalt property located in Quebec (the “White Fish Property“).
The Option Agreement, dated September 26, 2022, was entered into with two arm’s length option makers (the “Options“) and repositions the Company to now focus on the exploration of EV metals resources, namely nickel, copper and cobalt.
The White Fish property
The Poissons Blanc property, host to the McNickel nickel-copper-cobalt deposit, comprises 32 mining claims covering approximately 1,792 hectares located in the Saguenay mining district in the province of Quebec.
Containing a historical resource of 3.583 million tonnes with grades of 0.39% Ni, 0.18% Cu and 0.05% Co (non-NI 43-101 compliant resource), the deposit was discovered for the first time in 1987, with a major drilling program completed in 1989.
In the context of the current demand for these minerals, the Company believes that the Poissons Blanc property warrants further exploration and drilling focused on expanding the existing resources as well as a new “similar” zone to the north from the main laydown area (see Figure 1). Details of our new exploration plans are being developed and are aimed at uncovering the potential of this “similar” zone and expanding the existing historic mineral resources on the property.
“We are delighted to be building Royal Coal into a resource exploration company focused on electric vehicle metals,” commented Nicholas Konkin, CEO, Director. “Supply demand in the areas is strong and this particular property has tremendous exploration potential. With over 16,000 meters of drilling and metallurgical work, it shows excellent potential for mineral expansion and delineation. We are excited to begin work on this project which will include a Geotech VTEM airborne survey, other metallurgical work that will optimize metal recovery and core drilling.”
The historical resource estimates presented above were made prior to the implementation of the requirements of National Instrument 43-101 – Disclosure standards for mining projects; however, given the quality of the historical work performed and the reputation of the respective mining companies, the Company believes that the historical resource estimates are both relevant and reliable. A qualified person has not performed sufficient work to classify these historic mineral resources as current mineral resources; and the Company does not treat historical resources as current.
The option contract
Under the terms of the three-year option agreement, the Company may exercise the option to acquire a 100% undivided interest in the Poissons Blanc property upon payment of an aggregate of up to US$562,600 in cash and an aggregate of 5,000,000 common shares (the “Optional actions“) in the capital of the Company plus, at the option of the Company, a payment of C$500,000 or an additional C$500,000 of option shares and incurring a total of $1,200,000 in exploration expenditures on the Poissons Blanc property.
In the event that the option is exercised in full, the Company will grant one of the optioners a royalty of five percent (5%) on the net smelter returns (the “NSRAt any time within three years of the date of grant, the Company may purchase two and a half percent (2.5%) of the NSR (resulting in the remaining NSR being 2.5%) for a purchase price of C$2,000,000.
Figure 1: Claims map of the Poissons Blanc property.
To see an improved version of Figure 1, please visit:
Paul Mattinen, an Independent Qualified Person (“QP“) as that term is defined by National Instrument 43-101 – Disclosure standards for mining projectshas reviewed and approved the geological information presented in this press release.
For more information please contact:
416-642-1807 ext. 305
About Royal Coal Corp.
Royal Coal Corp. is a Canadian exploration company focused on mineral exploration and development.
This press release contains certain “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is often characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management as of the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause events or actual results differ materially from those projected in the forward-looking information. – search for information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s MD&A. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/138902