(TheNewswire)
Vancouver, British Columbia – TheNewswire - February 3, 2021 - Cache Exploration Inc.(the “Company”, or “Cache”), (TSXV:CAY ) ( OTC:CEXPF ) , is pleased toa nnounce the execution of a Letter of Intent(“ L OI ”) with the Artemovsky Rudnik Joint-Stock Company to acquire ownership of the previouslymined Lysogorskoye GoldDeposit (“ Lysogorskoye ” or“ the Project ”) located in the southern Krasnoyarsk region, Russia. TheCompany is preparing t o conduct the necessary due diligence on the Project.
Artemovsky Rudnik JSC has 100%interest in the Lysogorskoye GoldDeposit. The shareholders of Artemovsky RudnikJSC shall be issued shares of Cache Explorations and cash based on the value that both partiesagree upon following the due diligence period. The Company has until April 30, 2021 to complete duediligence on the Project and sign a Definitive Agreement, TheDefinitive Agreement is subject to TSX Venture approval and any otherapprovals to complete this agreement. Either party may terminate thisLetter of Intent with 10 business days following the completion of itsdue diligence.
Jack Bal, CEO of Cache Exploration Inc. States “Weare extremely excited to commence due diligence on the Lysogorskoye Gold Deposit . Cache Exploration has been looking for productionopportunities around the world to add shareholder value. We feel Lysogorskoye gives us the ability to become a producer in the nearterm”
All technical data on the Lysogorskoye Gold Deposit has been supplied by the vendor and has not beenindependently verified by a qualified person.
The Lysogorskoye Gold Deposit , located in theKuragino district of Krasnoyarsk, comprises a formerly operatedunderground gold mine within a 5.34 km 2 license arealocated 2.5 km west of the Abakan-Taishet rail network, with access tothe area power transmission grid, good roads and a local population ofskilled people. The Vendor has held the license since August, 2017.The project may present an opportunity for rapid recommissioning forthe production gold dore.
Discovered in 1960, formal evaluation of the Projectresulted in an initial historical estimate of 10 tonnes (321,507 oz)of gold in 1968 (Soviet era “C2” classification). Past work hasreportedly focused upon the exploration of a system of 26 NE-striking‘veins’ dipping 25 – 45o to the SE, and comprising of two types:quartz rich veins and structurally controlled zones of ‘cleavagecrack’ hosted gold deposition: these zones intersect locally to formbroader ‘shoots’, but commonly the ‘veins’ range from 0.6 to3.8m in width (averaging 0.85m). Past activity appears to have focusedon gravity gold recovery. Some of the veins reportedly extend down-dipto 300m, and have been accessed underground via three adits (numbered52 (deepest) – 54 (shallowest), of 60m vertical separation betweenthem). Some 19,215 m of principal underground workings were drivenbetween 1974 and 1995, developed around information from 27,541 m ofsurface drilling and 63,354 m of underground drilling. For the sameperiod some 7,087 kg (227,852 oz) of gold production at 8.2 g/t (0.264oz/t) was also recorded. Underground workings, which comprise ofconventional drill and blast and some tunnel boring machinedevelopment, are reportedly dry and in good condition.
Since 2008 some additional exploration (by OJSC company“Minex Resources”) included 1,715.3 m of drilling (12 holes)confirmed aspects of the historical work, and suggests potential forstockwork mineralization in addition to the vein hosted gold.Recoverable silver and possibly copper are also indicated. Atechnical report “Miramine - Mineral Resource Modeling andEstimation Report JORC-2011” by Miramine LLCwas published on the Lysogorskoye gold deposit in (2011, historical).The estimation of resources is reported toconsider 6,443 kg (207,147 oz) Indicated Resource and 46,331 kg(1,489,574 oz) Inferred at Lysogorskoye. Areview and/or recalculation of the historic resource is required by anindependent Qualified Person to confirm these as current resources asdefined by NI 43-101. A qualified person has not done sufficient workto classify the historical estimate as current mineralresources and the issuer is not treating thehistorical estimate as current mineral resources.
Since 2016 some additional technical work by the Vendorhas confirmed a startup resource (category “C1”) of 504 kg (16,204oz at 9 g/t) and a development plan for a small gold plant has beenprepared. The license includes an initial authorization for projectdevelopment to include ore processing through an on-site Gold RecoveryPlant, which contemplates cyanidation of flotation concentrate. TheVendor also reports recoverable silver andcopper albeit at very low grades (Ag, approximately 2.46 g/t) andcopper (approximately 0.2%).
Cache is pleased to announce that it intends tocomplete a non-brokered private placement of up to 10,000,000 units ofthe Company at a price of $0.28 per Common Share for aggregateproceeds of up to $2,800.000 (the “Private Placement”) Each unitwill consist of one common share and one half common share purchasewarrant. Cache reserves the right to increase the size of theprivate placement to 15,000,000 units. Each warrant will entitle theholder to purchase one additional common share, up to a total of 5million warrant shares, at a warrant exercise price of $0.35 centsexercisable for a period of 24 months from the date of closing; provided that, if, at any time prior to theexpiry date of the warrants, the volume-weighted average trading priceof the common shares on the Toronto Venture Exchange is greater than$0.50 for 10 consecutive trading days, the company may, within 10business days of the occurrence of such event, deliver a notice to theholders of warrants accelerating the expiry date of the warrants tothe date that is 30 days following the date of such notice. Anyunexercised warrants will automatically expire at the end of theaccelerated exercise period.
Closing of the private placement is subject to a numberof conditions, including receipt of all necessary corporate andregulatory approvals, including the exchange. All securities issued inconnection with the private placement will be subject to a statutoryhold period in accordance with applicable securities legislation. Thecompany intends to use the net proceeds of the private placement tofinance exploration on the Kiyuk Lake property, for currentliabilities and for general working capital purposes.
Finders' fees of 7 per cent in cash and 7 per cent infinders' warrants will be paid in connection with the completion ofthe offering, in accordance with TSX Venture Exchange policies.
The Company announces that it has granted to certaindirectors, officers and consultants of the company Options to purchaseup to 2,000,000 million common shares in the capital of the companypursuant to the company's stock option plan. The options areexercisable on or before February 2, 2023, at an exercise price of$0.31 per share. The grant of Options is subject to regulatoryapproval.
About Cache Exploration
Cache is a gold focused Company that holds and operates the Kiyuk LakeProperty which covers 590km 2 in SW Nunavut: the project features a number of goldbearing prospects including 2017 identification of 8m of 26.4 g/t goldat the Rusty Zone and extensive mineralization at East Gold Point with64 m at 1.5 g/t gold and 10 m at 6.5 g/t gold. Extensive surficialfloat evidence indicates a series of high-interest gold systems (see http://cacheexploration.com/CAY-NR-10-26-17 to view plan maps of Rusty Zone and EastGold Point, section showing select KI17-004 and -005 drill results andMaps of rock and till sampling results.
Qualified Persons
Chris Pennimpede, P. Geo., is a Qualified Person as defined byNational Instrument 43-101, has reviewed and verified the technicalinformation provided in this release.
For more information about Cache Exploration, please visit: http://www.cacheexploration.com/
On behalf of the Board of Directors
Cache Exploration Inc.
“ JackBal ”
JackBal
Chief Executive Officer
FOR MORE INFORMATION, PLEASECONTACT :
JackBal
Tel. 604-306-5285 jackbalyvr@gmail.com
This news release contains certain forward-lookingstatements within the meaning of Canadian securities laws, includingstatements regarding the Private Placement and Share Consolidation ofCache Exploration Inc. (“Cache”); the availability of capital andfinance for Cache to execute its strategy going forward.Forward-looking statements are based on estimates and assumptions madeby Cache in light of its experience and perception of current andexpected future developments, as well as other factors that Cachebelieves are appropriate in the circumstances. Many factors couldcause Cache’s results, performance or achievements to differmaterially from those expressed or implied by the forward lookingstatements, including: discrepancies between actual and estimatedresults from exploration and development and operating risks,dependence on early exploration stage concessions; uninsurable risks;competition; regulatory restrictions, including environmentalregulatory restrictions and liability; currency fluctuations;defective title to mineral claims or property and dependence on keyemployees. Forward-looking statements are based on the expectationsand opinions of the Company’s management on the date the statementsare made. The assumptions used in the preparation of such statements,although considered reasonable at the time of preparation, may proveto be imprecise and, as such, undue reliance should not be placed onforward-looking statements. The Company expressly disclaims anyintention or obligation to update or revise any forward-lookingstatements whether as a result of new information, future events orotherwise.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWSRELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OFTHIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCHDATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKINGINFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHERDATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATETHIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED INACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.
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