Vancouver, British Columbia - TheNewswire - August 27, 2020 - Norseman Capital Ltd. (TSXV:NOC) ("Norseman" or the "Company"), which announced on August 25, 2020 that it intends to change its name to "Norseman Silver Inc." is pleased to an announce that it has entered into an option agreement (the "Option Agreement") with Cloudbreak Discovery Corp. ("Cloudbreak") to acquire a 100% interest in certain mining claims located in the Province of British Columbia (the "Silver Switchback" or "the Property"). The entering into of the Option Agreement is subject to the approval of the TSX Venture Exchange (the "Exchange").
Pursuant to the Option Agreement, in order to fully exercise the option (the "Option"), the Company shall: (i) pay to Cloudbreak an aggregate of $30,000 and 750,000 common shares in the capital of the Company ("Common Shares") in installments; and (ii) pay to 1975647 Alberta Ltd. ("197 Alberta") an aggregate of $60,000 and 1,850,000 Common Shares in installments; and (iii) make aggregate exploration expenditures of $475,000 on the Silver Switchback Property over three years.
The first installment is composed of: (i) $30,000, $10,000 of which is payable to Cloudbreak on the effective date (the "Effective Date") of the Option Agreement and the remaining $20,000 of which is payable within five business days of approval of the Exchange ("Exchange Approval"); (ii) 370,000 Common Shares payable to Cloudbreak issuable within five business days of Exchange Approval; and (iii) 250,000 Common Shares payable to 197 Alberta within five business days of Exchange Approval. The second installment is composed of 380,000 Common shares and is payable to Cloudbreak on the first anniversary of the Effective Date. The third installment is composed of $20,000 and 600,000 Common Shares payable to 197 Alberta on the second anniversary of the Effective Date. The final installment is composed of $40,000 and 1,000,000 Common Shares payable to 197 Alberta on the third anniversary of the Effective Date.
In addition, pursuant to the Option Agreement, the Company shall grant to Cloudbreak a 1.0% net smelter return ("NSR") royalty. The Company shall have the right to acquire one-half of the NSR from Cloudbreak at a price of $500,000.
The Property is located 55Km east-southeast of Terrace, BC in the Stikine terrane. The rocks on the property are of the Hazelton Group volcanics and sedimentary rocks. To date, only Limited reconnaissance programs have been conducted on the property, which include a small, anomalous for Cu and Ag, soil grid over the northern portion of the Switchback Showing. The outcrop sampling includes samples that assays returned 626.3 g/t Ag and 4.39% Cu located roughly in the center portion of the claims (and the showing) and 138 g/t Ag and 4.02% Cu in an outcrop approximately 100m to the north.
Volcanic Redbed Copper (VRC) deposits occur as concordant and peneconcordant disseminated crosscutting vein and fault-controlled copper sulphide and/or native copper deposits in predominantly subaerial volcanic sequences. Mineralization can typically be comprised of chalcopyrite, chalcocite, bornite covellite and/or native copper which contain silver, this style of mineralization is distinct from VMS deposits. Common textures and structures are open space filling, vein and veinlets, replacement, disseminated and laminated mineralization.
Qualified Person: Rory Kutluoglu, B.Sc. P.Geo., a Qualified Person as defined by National Instrument 43-101 and a consultant for Cloudbreak, has read and approved all technical and scientific information contained in this news release.
John W. Barr
Interim Chief Executive Officer
T: + 61 0 418 912 885
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements may be identified by such terms as "believes", "anticipates", "intends", "expects", "estimates", "may", "could", "would", "will", or "plan", and similar expressions. Forward-looking statements in this release include, among other things, the entering into and completion the Option Agreement, statements regarding the issuance and trading of the Common Shares and business, economic, and political conditions in Canada. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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