Casa Minerals Completes Option Agreement to Advance Exploration on Keaper Property
VANCOUVER, BC / ACCESSWIRE / January 28, 2019 / Casa Minerals Inc. (TSX-V: CASA, FRANKFURT: 0CM, OTC: CASXF ) (the "Company" or "Casa") is pleased to announce it has signed an option agreement with a private company (the "Optionee") for exploration of Casa's 100%-owned Keaper polymetallic (gold-silver-copper-lead-zinc) project located 20 kilometers north of Terrace, British Columbia near Casa's flagship Pitman Property. Under terms of the agreement, the Optionee has the right to earn up to a 60% interest in the Keaper Property over 4 years by: 1) spending $4 million on exploration of the property; 2) paying Casa Minerals an aggregate of $550,000; and 3) issuing an aggregate of 2,500,000 shares to Casa. Exploration tax credits on the Keaper Property will be shared by the parties.
"This agreement is entirely non-dilutive for Casa shareholders," said Casa President and CEO Farshad Shirvani. "It allows us to be carried in an aggressive exploration program on Keaper, furthering the successful work of the past several years. We are especially excited about following up on the recent surveys that returned high values for silver, zinc and copper. With a drill permit in place from late 2018, we look forward to an active season at Keaper."
The Keaper property is a highly prospective polymetallic project with rock and soil geochemical sample survey as high as 3.93 g/t Gold, 1,512 g/t Silver, 9.90 % Copper* and 13.9 % Zinc. (*value not previously reported). The 2018 field program confirmed and extended the property's "Nelson" prospect and identified a new "Lucky Crew" prospect area. The various mineralized prospects have been partially defined in an area that extends about 3.2 kilometers northwest-southeast.
The Keaper prospect area was first recognized in 2008 by provincial survey geoscientists. Casa has held claims on parts of the area since 2008 and recently added two claims for a total area of 3,602 hectares.
"There are numerous strong targets at Keaper," said Shirvani. "The focus for 2019 will be refining the drill targets with the results of an airborne survey that is scheduled to be flown this winter. Following that we are encouraging our new partner to do further exploration such as drilling."
The Optionee will acquire a 60% interest on Keaper upon:
(a) the Optionee paying an aggregate of $550,000 to Casa, as follows:
- $15,000.00 on execution of this Agreement (paid);
- $30,000.00 on or before the first anniversary of the date of this Agreement;
- $75,000.00 on or before the second anniversary of the date of this Agreement;
- $150,000.00 on or before the third anniversary of the date of this Agreement; and
- $280,000.00 on or before the fourth anniversary of the date of this Agreement.
(b) the Optionee issuing an aggregate 2,500,000 Shares to Casa as follows:
- 400,000 Shares on execution of this Agreement (issued);
- 600,000 Shares on or before the first anniversary of the date of this Agreement;
- 500,000 Shares on or before the second anniversary of the date of this Agreement;
- 500,000 Shares on or before the third anniversary of the date of this Agreement; and
- 500,000 Shares on or before the fourth anniversary of the date of this Agreement.
(c) the Optionee incurring aggregate Exploration Expenditures of $4,000,000 on the Property as follows:
- $150,000 of Exploration Expenditures on or before the first anniversary of this Agreement;
- an additional $350,000 of Exploration Expenditures on or before the second anniversary of this Agreement;
- an additional $1,000,000 of Exploration Expenditures on or before the third anniversary of this Agreement;
- an additional $1,000,000 of Exploration Expenditures on or before the fourth anniversary of this Agreement;
- an additional $1,500,000 of Exploration Expenditures on or before the fifth anniversary of this Agreement.
Casa will also retain a 1.5% Net Smelter Royalty upon commencement of Commercial Production, of which 0.5% of the Net Smelter Royalty may be purchased for $500,000.
The transaction is subject to acceptance of the TSX Venture Exchange.
Erik Ostensoe P.Geo., a Director of the Company, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure in this news release.
About Casa Minerals
Casa Minerals is engaged in the acquisition, exploration and development of mineral properties located in Canada. The Company holds a 100% interest in the polymetallic Pitman and Keaper properties and an option to acquire a 75% interest in the Arsenault VMS copper-gold-molybdenum property. Pitman, the company's flagship property, and Keaper are located near Terrace, British Columbia. The Arsenault property is located approximately 130 kilometers east-northeast of Atlin in northern British Columbia.
On Behalf of Board of Directors:
Farshad Shirvani, M.Sc. Geology
President and CEO
For more information, please contact:
Casa Minerals Inc.
Farshad Shirvani, President & CEO
Phone: (604) 689-9523
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company 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 the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. 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, the Company undertakes no obligation to publicly update or revise forward-looking information.
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.
SOURCE: Casa Minerals Inc.