Rogue Resources Inc.is pleased to announce that it has entered into an agreement to acquire the entire Snow White Quartz Project, located near Massey, Ontario, Canada from a Sudbury-based prospector (the "Seller").
"Once Rogue initiated the Quartz Exploration & Development Agreement in September, quartz opportunities began to present themselves to us and Snow White was at the top of the list. We have said that in addition to Silicon Ridge we would continue to analyze other quartz deposits with varying volume potential, cost structure and metallurgical characteristics. The acquisition of Snow White will be a direct result of this work and will strengthen our portfolio", said Sean Samson, President and CEO of Rogue.
Under the terms of the Agreement, Rogue has agreed to purchase the Project (the "Acquisition") by delivering, among other things, the following to the Seller:
- cash payment at closing (the "Closing") of CAD$25,000;
- issuance of 150,000 Rogue common shares ("Common Shares") at Closing;
- additional cash payments of an aggregate of CAD$725,000 following Closing upon the earlier of achievement of certain milestones and anniversaries of Closing (the "Payment Period");
- additional issuance of an aggregate of 900,000 Common Shares during the Payment Period; and
- grant of a 2% net return on all quartz/silica from the Project, subject to a reservation by the Company of a buy back right upon payment of an additional CAD$2 million to the Seller.
Pursuant to the Agreement, Closing of the Acquisition is expected to take place in December 2017, conditional upon the completion of certain confirmatory due diligence by the Seller, including thermal strength index ("TSI") test work currently underway, and the approval of the TSX Venture Exchange.
The Snow White Project
The Snow White property consists of two staked mining claims representing approximately 96 hectares, located approximately 26 km northwest of the town of Massey, 125 km west of the city of Sudbury and 500km north-northwest of Toronto. The Project currently has Class A and Class B Pit-Quarry-Aggregate Permits for unlimited annual silica/quartz production. The area surrounding the Project is equipped with good infrastructure, an existing access road, and is also proximate to deep-water ports on Lake Huron that the Company expects could ease transportation logistics in respect of the Project.
Snow White's material has been drilled and metallurgically tested over the past two decades. In 2000, Globe Specialty Metals Inc. (now part of Ferroglobe PLC), completed furnace testing on a 933 tonne bulk sample at their facility in Niagara Falls, New York which indicated that the shipment met all of the specification requirements and that a good quality silicon metal was produced in the furnace during the testing.
Additional areas of possible quartz mineralization have been identified within the Project's property boundaries and could represent targets for future exploration.