(TheNewswire)
Highlights
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Additions to Management and Board
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Creation of an Advisory Board
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Acquisition of Leigh Creek Magnesite Project
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Announcement of Financing
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Setting of Stock Options
Vancouver, B.C. – TheNewswire - June 2, 2022 - CrestResources Inc. (CSE:CRES) (the “Company” ) is pleased to announce thefollowing changes to its management team and board of directors, aswell as the formation of an Advisory Board.
Jason Cubitt, currently a non-executive board member,has been engaged to replace Emma Fairhurst as CEO. Mr. Cubitt addsconsiderable expertise to the executive team having worked as Directorof Investments for an offshore natural resources fund as well as hisrecent experience successfully leading the dual-listing of SolisMinerals on the Australian Securities Exchange (“ASX”).
Jason Cubitt commented: “Emma Fairhurst stepped intothis role at a time of transition for Crest and has guided the companyto a solid base with a clear direction towards decarbonizationinvestments and opportunities. Further, she has been instrumental inrecruiting the very talented people mentioned in this release. Emmawill stay with the Company in the role of Executive Chairperson and Ilook forward to working with her in this capacity.”
James Channo, currently a partner at The Ince Group inLondon, England, has agreed to join the board of directors effectiveimmediately. Mr. Channo has 20 years’ experience advising mid andlarge cap companies on initial public offerings, private placementsand mergers and acquisitions. He has advised LSE, ASX and TSXcompanies with a market capitalisation ranging between $200 millionand $1 billion in connection with their institutional and retailcapital raisings and acquisitions in a number of sectors includingmining, fintech, energy, retail and financial services. He isconsistently recognised as a leading lawyer for Corporate and M&Ain Chambers UK and in The Legal 500 UK.
The Board has also nominated Jon Gill to be appointedas a Director at Crest’s upcoming Annual General Meeting. Jon is afounding shareholder and Director for 14-years with Cymat Technologies(CYM/TSX) a strategic material vendor in the EV sector. He is pastPresident and Chairman of the Toronto Investment Dealers Association,former Operating Partner for merchant bank HSD Capital, and morerecently the President and CEO of Super Electric Corporation, aprivate-branded consumer products company in North American and Asia,as well as the former managing director of SEGA EntertainmentCanada.
Advisory Board
Crest has formed an Advisory Board to support theCompany’s plans for growth. Inaugural members are Brian Moller andGreg English.
Brian Moller is a corporate partner in the BrisbaneAustralia-based law firm Hopgood Ganim Lawyers, specializing incapital markets, mergers and acquisitions and corporate financing andrestructuring. He has acted on numerous transactions and capitalraisings in both the industrial and resources and energy sectors.Brian brings a wealth of experience and expertise to the board, particularly in the corporate regulatory and governanceareas.
Greg English, also joining the Advisory Board, is aqualified lawyer, mining engineer and experienced company directorwith more than 25 years’ hands-on resource industry experienceacross precious metals, base metals, and energy. Greg is ExecutiveChairman of Archer Materials and Chairman of ASX-listed Core Lithium,currently developing one of Australia’s most capital-efficient andlowest-cost spodumene lithium projects.
Chris Huggins has resigned his post as President ofCrest. The Company thanks Chris for his considerable efforts managingthe course of the company. Chris will stay involved with the group aswe explore opportunities in long term energy storage.
Alan Tam has agreed to assume the role of CFO. Alan isa senior executive involved with structuring, planning and executionof IPOs, RTOs and CPCs. Formerly a financial planner with RBC Wealthand a Chartered Accountant with Lohn Caulder LLP, Mr. Tam is a CPA/CAand has dealt with tax, regulatory, investment management,international cash and tax management, compliance and accountingmatters.
Bryce Clark, outgoing CFO, will continue to consult toCrest. The Company thanks Bryce and his team for their dedication.
Emma Fairhurst commented: “I wish to thank Jason, the Board, andAdvisory Board for their confidence in Crest, now and into the future. For myself, I believe in the value of Crest and will continue towork to build and realize value for all shareholders.”
LEIGH CREEK, MOUNT HUTTONACQUISITION
Crest announces it has entered into a Letter of Intentto acquire a 69.5% interest in WitchiMag Pty Ltd. which owns a 100%interest in the Mount Hutton magnesite property; and a 80% interest inMagMetal Tech Pty, which owns a 100% interest in the Leigh Creekmagnesite property (together referred to as the “ The Leigh Creek Project ”.) The Leigh Creek Project comprises exploration licencescovering over 600 square kilometers in South Australia, hosting anumber of magnesite showings.
Jason Cubitt commented: “Historic work on the LeighCreek Project demonstrates a truly significant near-surface historicalresource in a premier mining jurisdiction. This acquisition marks amajor milestone for Crest and accelerates its progress into marketssupportive of global decarbonization.”
Magnesite (MgCO 2 ) is a hard rock mineral which occurs in two main forms:crystalline and cryptocrystalline. Crystalline magnesite makes uparound 93% of the world’s magnesite resources and is found incarbonate rocks. Cryptocrystalline (also known as amorphous) magnesitemakes up the remaining 7% of resources and is mainly hosted inultramafic rocks and freshwater sediments.
About The Leigh Creek Project
The Leigh Creek Project is located in SouthernAustralia and is composed of two exploration licences totaling 664square kilometres. Within the bounds of the project there are severalhistorical magnesite occurrences the Mount Hutton South, Mount Hutton,Mt Playfair, Pug Hill, Termination and Witchelina.
Magnesite is predominantly present as magnesiumcarbonate and can either be upgraded via calcination into variousindustrial products or refined into magnesium metal. Crest is alsoreviewing the significant research that is being done on magnesium-ionbattery formulations, as an alternative to lithium-ion chemistry, andwill establish research partnerships to actively participate in thisaspect of the global electrification initiative.
Magnesite showings on The Leigh Creek Project are ofthe cryptocrystalline sedimentary type, occurring in eoproterzoicskillogalee dolomite beds which are known to extend over 120 km in anorth-west trend. The magnesite beds, which are up to 8 metres thickin places, were formed by almost pure magnesite precipitation inancient, shallow marginal marine lagoons and mud flats. Thecryptocrystalline magnesite clasts are set in a microcrystallinedolomite and talc matrix, and each magnesite bed has unique chemicaland mineralogical characteristics making beds.
The magnesite occurrences on The Leigh Creek Projecthave historical resources associated with them. See table 1below.
Table 1 – Leigh Creek Historical Resource
The Leigh Creek Project was formerly owned by asuccession of related companies including SAMAG, Pima Mining andMagnesium Development Limited and Magnesium International Limited. Forsimplicity all reference to historic information will be attributed toSAMAG.
These mineral resources are historicalin nature and should not be relied upon. It is unlikely they conformto current CIM Definition Standards. They have not been verified todetermine their relevance or reliability. The workload required toupdate these mineral resources to the current CIM standards criteriahas not been evaluated.
The historical resources above are all from a 2002Feasibility study Generated by SAMAG Limited. The parameters use tocalculate each of the above historical estimates are discussed belowas known. The historical resources are reported using Australasian Code for Reporting of Mineral Resources and OreReserves how the categories were calculated are unknown.
The qualified person has not a not done sufficient workto classify the historical estimate as current mineral resources ormineral reserves; and the issuer is not treating the historicalestimate as current mineral resources.
Mount Hutton and Mount Hutton South resources are sedimentarymagnesite beds were assumed to be tabular bodies, due to their planartop and bottom surfaces and consistent thickness. Tonnage calculationswere made considering thickness, vertical depth, dip and specificgravity. All Inferred Resources were calculated to a vertical depth of60 m. Thicknesses of each bed were calculated by considering theapparent thickness from drill intercepts and the bedding angle of thetop and bottom contacts.
Athickness for each bed at an average dip was extrapolated halfway tothe neighbouring traverse. Not all magnesite beds were targeted ineach traverse as some beds were only intercepted twice. In thissituation, beds were identified in outcrop along strike and placed inthe Inferred Resource Category. Magnesite beds intercepted inneighbouring traverses are assumed to be continuous between traversesand hence were placed in the Indicated Resource Category. A total of328 specific gravity readings were taken including 100 of dolomiteinterburden rock. An average specific gravity was used for lower beds,which were not sampled. Grades represent weighted averages of allintercepts used in tonnage calculations.
Witchelina Resource Measured Resources were calculated using wireframes anddigital terrain model volumes. The consistent nature of the shallowmarine sedimentary magnesite beds enabled this method to be used witha high level of confidence.
The simple geological structure and thick uniform width ofthe magnesite beds at Witchelina enabled confident interpretation ofcross-sections. Magnesite bed drillhole intercepts were joined withthe corresponding surface outcrop, and then interpolated orextrapolated to approximately 60 m vertical depth from the overlyingground surface.
Wireframe bodies were built by interpolating betweenmagnesite intersections in each drill-section. Wireframes were thenvalidated using Micromine, and visually inspected in 3D view.Resources were calculated from the wireframe using the MicromineModelling Wireframe Reserves function. An average specific gravity of2.91 g/mL was used for tonnage estimation. The average SG value wascalculated from 53 magnesite half-core samples.
MgO and CaO grades from the downhole assay file were assignedto the wireframe using 3D-point method in the Micromine ModellingWireframe Reserves function. The wireframes weighted average gradeswere calculated using the “from-to” weighted method available inthe wireframe reserve calculation function.
Asimple volumetric approach based on the assumption that magnesite bedsrepresent tabular bodies was used to calculate tonnages fromWitchelina drilling data. Weighted averages of all geochemicalintercepts used in tonnage calculations constitute the gradesquoted.
Myrtle Springs and Mount Playfair resources were calculated usinga simple volumetric approach based on the assumption thatmagnesite beds represent tabular bodies was used to calculate thetonnages.
Pug Hill and Termination Hill Resource were calculated using a simplevolumetric approach based on the assumption that magnesite bedsrepresent tabular bodies was used to calculate tonnages from Pug Hilldrilling data. Weighted averages of all geochemical intercepts used intonnage clculations constitute the grades quoted.
The technical information contained in this newsrelease has been reviewed and approved by Mr. Derrick Strickland,P.Geo. (1000315), a “Qualified Person” (“QP”) as defined inNational Instrument 43-101 – Standards of Disclosure for MineralProjects.
Leigh Creek Acquisition Terms are asFollows:
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Financing
Crest announces a non-brokered private placement of upto a maximum 20 million units (the "Units") at a priceof $0.05 per Unit (the "Offering"). Each Unit consists ofone common share (a "Common Share") and one (1) Common Sharepurchase warrant (a "Warrant"). Each Warrant is exercisableto acquire one Common Share at a price of $0.06 for a period of60-months after the closing of the Offering. All securities issuedwill be subject to a four month hold period from the date of closingof the Offering. In addition to the four monthhold, the Common Shares will also be subject to a further resalerestriction expiring thirty (30) months from the date of providedthat, if at any time after the expiry of the four month hold, the 10day volume weighted average price of the Common Shares of the Company,is equal to or greater than $0.25, the 30 month restriction shallexpire. Proceeds from the sale of the Units willbe used for general working capital purposes.
Stock Options
The Company also announces that, in accordance with theCompany’s stock option plan, it has granted to new and existingdirectors, officers, advisors and consultants incentive stock optionsto purchase up to an aggregate of has issued 8,075,000 common sharesexercisable on or before June 2, 2027 at a price of $0.06. All stockoptions will vest over 24 months, as to 20% immediately and every 6months thereafter.
FOR FURTHER INFORMATIONCONTACT:
Jason Cubitt
Chief Executive Officer
Emma Fairhurst
Executive Chairperson
Crest Resources Inc.
778-819-2709
info@crestresourcesinc.com
Neither the Canadian SecuritiesExchange nor its Regulation Service Provider (as the term is definedin the policies of the Canadian Securities Exchange) acceptsresponsibility for the adequacy of accuracy of this newsrelease.
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