DEEP:CC - DeepRock Minerals Amends Golden Gate Project Option Agreements To Expedite Earn-In
(TheNewswire)
Vancouver, BC, April 17th, 2024 – TheNewswire – DeepRock Minerals Inc. (CSE: DEEP)("DeepRock" or "the Company") , is pleased to announce amendments toits option agreements concerning the Fall Grid Property and the LugarProperty, comprising the Golden Gate Project. Under these amendments,there is no change in the total cash payments, however, thetransactions will involve the issuance of shares and eliminate allcommitments on exploration expenditures.
Falls Grid Property
Under the revised terms, DeepRock will achieve fullearn-in status for the Falls Grid property by making a cash payment of$50,000 and issuing 500,000 shares ($10,000 value) to the Optionor.The Optionor will retain a 2% Net Smelter Returns (“NSR”) royaltyon the Falls Grid property.
For more details on the Falls Grid option agreementplease read the August 7 th , 2019 news release. https://tinyurl.com/4r243rrt
Lugar Property
Similarly, DeepRock will acquire 100% interest in theLugar property through a cash payment of $105,000 and the issuance of1,000,000 shares ($20,000 value) to the Lugar Optionor (“LugarOptionor”), with no further exploration expenditure requirements.The Lugar Optionor will also retain a 1.25% NSR royalty on theproperty.
For further information on the Lugar option agreementplease read the July 22 nd , 2021 news release. https://tinyurl.com/46fysf7d
The acquisition of both properties is expected to befinalized on or before April 30th, 2024.
Andrew Lee, CEO of DeepRock Minerals, stated:"This marks a significant milestone in our restructuring plansfor the Company. With these agreements in place, we are on track tofinalize the acquisition of two key properties in New Brunswick,securing 100% interest. I feel DeepRock is very close now to being ina great position to deliver substantial value to ourshareholders."
About the Golden Gate Project
The Golden Gate project is situated within theBathurst Mining Camp which lies towards the northern end of anortheasterly trending belt or terrane of Cambrian- to Ordovician-age,sedimentary and volcanic rocks. This terrane is unconformably overlainby or in fault contact with Silurian rocks to the north and west, andunconformably overlain by Carboniferous rocks to the east. Theregional geology has rocks that belong to the Dunnage and Gander zonesof the Canadian Appalachians and formed during the Ordovician times byrifting of an existing submarine volcanic arc on the continentalmargin of which is now North America. Rifting ultimately produced abasin into which felsic and later mafic volcanism occurred in EarlyOrdovician time with coincident ‘black smoker’ volcanogenicmassive sulphide (‘VMS’) mineralization. In Late Ordovician toSilurian time the rifting was closed by westward subduction.
There are numerous mineral showings recorded within theBathurst Mining Camp (‘BMC’). The most famous and notable is theBrunswick No. 12 Mine, which closed on April 30, 2013, after 49 yearsin operation. This mine reportedly produced 136,643,367 tonnes of oregrading 3.44% Pb, 8.74% Zn, 0.37% Cu, 102.2 g/tAg, making it one of the largest known and longest lived, undergroundVMS deposits in the world. This mine and those of the BMC alsoproduced an estimated 500 million ounces of silver during the 50 yearsof mining history (McCutcheon and Walker, 2019).
The Golden Gate project hosts several copper, lead-zincand precious metal showings that have received local prospecting andgeological mapping, geophysical surveying (airborne and ground EM andmagnetometer), soil and rock sampling, and cursory diamond drilling inthe past. The results of this work show that the project covers maficlava flows and related sedimentary rocks of the Little River Formation(Tetagouche Group). The area is cut by a series of thrust faults thatappear to occur along several contacts between the various sedimentaryand volcanic rock units. Three types of hydrothermal alteration havebeen included within the project area, include: low-gradechlorite-epidote regional alteration of mafic volcanics withdisseminations, veinlets and stringers of pyrite and arsenopyrite;siliceous alteration of the mafic volcanics; and polylithic pebblebreccias.
Private Placement
The Company also announces it intends to complete anon-brokered private placement financing of up to 20,000,000flow-through units of the Company (the “FT Units”) at a price of$0.025 per FT Unit for aggregate gross proceeds of up to $500,000 (the“Offering”).
Each FT Unit will consist of one (1) flow-through shareof the Company and one-half of one (1/2) non-transferable common sharepurchase warrant (each whole warrant a “Warrant”). Each Warrantwill be exercisable by the warrant holder to acquire one (1)additional non-flow through common share at a price of CAD$0.07 for aperiod of twenty-four (24) months from the closing of the PrivatePlacement (the “Closing Date”). The proceeds from this offeringwill primarily support the advancement of the Golden Gate Project. Theclosing of the private placement is anticipated in May 2024.
In consideration of the introduction to the Company ofinvestors in the Offering, a finder's fee may be paid in cash and/orin securities of the Company in accordance with applicable securitieslaws and Canadian Securities Exchange (“CSE”) policies. Thecompletion of the Offering will be subject to receipt of and allnecessary regulatory approvals, including, approval by the CanadianSecurities Exchange. The securities issued in connection with theOffering will be subject to a four-month hold period under applicableCanadian securities laws commencing on the Closing Date of theOffering. It is anticipated that insiders of the Company willparticipate in the Offering. Participation of insiders of theCompany in the Offering will constitute a related party transaction asdefined under Multilateral Instrument 61-101 - Protection of MinoritySecurity Holders in Special Transactions (“MI 61-101”). TheCompany intends to rely on the exemption from the formal valuationrequirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(a)of MI 61-101 and the exemption from the minority approval requirementsof Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(a) of MI61-101.
J. Douglas Blanchflower, P. Geo. (BC and NL), aQualified Person in accordance with National Instrument 43-101, hasreviewed and accepted the technical material contained in this newsrelease.
About DeepRock Minerals
DeepRock Minerals is a Canadian mineral explorationcompany headquartered in Vancouver, British Columbia engaged in theacquisition, exploration, and development of mineral resourceproperties.
On Behalf of the Board of Directors
Andrew Lee
President/CEO/Director
604-720-2703 / ys.andrew.lee@gmail.com
Cautionary Note RegardingForward-Looking Statements
Neither the Canadian Securities Exchange nor itsRegulation Services Provider accepts responsibility for the adequacyor accuracy of this release. This news release contains"forward-looking information" including statements withrespect to the future exploration performance of the Company. Thisforward-looking information involves known and unknown risks,uncertainties and other factors which may cause the actual results,performance, or achievements of the Company to be materially differentfrom any future results, performance or achievements of the Company,expressed or implied by such forward-looking statements. These risks,as well as others, are disclosed within the Company's filing on SEDAR,which investors are encouraged to review prior to any transactioninvolving the securities of the Company. The forward-lookinginformation contained herein is provided as of the date of this newsrelease and the Company disclaims any obligation, other than asrequired by law, to update any forward-looking information for anyreason. There can be no assurance that forward-looking informationwill prove to be accurate, and the reader is cautioned not to placeundue reliance on such forward-looking information.
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