Temas Resources Corp. is pleased to announce it has executed a definitive agreement with CloudBreak Discovery Corp. and Cronin Services Ltd. to acquire a 100% interest in the La Blache property in Cote-Nord, Quebec by way of certain share and cash consideration.
The La Blache Property is part of the La Blache Anorthosite Complex and hosts the Farrell-Taylor magnetite-ilmenite deposit. The deposit starts at surface extending to 600m below surface, with an 1150m strike extent, oriented roughly ENE and has an average thickness of 50m and a minimum thickness of 15m. In 2012 SGS Canada published a resource estimate of 101,700,000t @ 59.7% Fe2O3 (41.76% Fe), 18% TiO2 and 0.33 V2O5 (0.18% V) at a cut-off of 5.1% TiO2Eq.
Kyler Hardy, CEO of Temas, stated "The La Blache Property brings the company a step closer to consolidating a land package that holds a number of identified mineralized lenses. The Temas team continues to build momentum and this acquisition represents the next step in the execution of our plan to build an advanced base and specialty metals portfolio."
The La Blache Property is comprised of 48 claims covering 2,653.25ha of ground ~100km north of the community of Baie-Comeau, along Quebec's north shore region, situated near Hydro-Quebec's Manic 3 Hydro Reservoir. The La Blache Property is part of the Grenville Geological Province, which extends for more than 2,000 kilometers and skirts the North Shore of the St-Lawrence River.
Its width varies from 300 kilometers to 600 kilometers and forms the south east segment of the Canadian Shield. The Archean rocks of the Superior Province and the Proterozoic rocks of the Otish Basin are separated from the Grenville Province by the Grenville Front. The tectonic fabric of the Grenville is predominantly northwest-southwest trending.
The bedrock of the property is the east-west trending La Blache Anorthosite Complex and late crosscutting gabbronorites, gabbros, diabase, mangerites, granites and pegmatites. The La Blache Anorthosite Complex is an almost ellipsoid batholith of 35 kilometers by 20 kilometers within intrusive rocks that extends for 100 kilometers by up to 20 kilometers.
The La Blache Property was originally discovered in the 1950's with exploration being carried out through the years with the most advanced study being the 2012 report from SGS. Drilling coverage on the property has been conducted to a spacing appropriate for inferred resource estimation, preliminary metallurgical work has also been conducted resulting in high recovery of Fe, Ti and V.
These initial steps are seen as positive progress, but additional work will need to be conducted to further define the project's potential. Temas is looking forward to advancing the La Blache Property and the region through appropriate exploration and engineering studies.
Terms of the Transaction
Pursuant to the Transaction, Temas will acquire a 100% interest in the La Blache Property by issuing an aggregate of 20,000,000 Temas shares (the "Payment Shares") and paying $60,000 to the Vendors and deliver an NSR Royalty of 2%, subject to the right of Temas to repurchase one-half of the NSR Royalty (being 1%) for $2,500,000 at any time.
The Payment Shares will be subject to pooling restrictions as follows: 25% will be released from pool on the date that is six months after the closing of the Transaction, and 75% of the Payment Shares will be released from pool on the date that is 12 months after such date.
The Transaction is subject to standard closing conditions, including receipt of Canadian Securities Exchange approval and Temas shareholder approval as described below.
The Transaction constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Transaction is exempt from the formal valuation requirements of MI 61-101 as Temas is not listed on a specified stock exchange. Temas intends to obtain minority shareholder approval of the Transaction in accordance with the requirements of MI 61-101.
Further details with respect to the Transaction will be included in the information circular to be mailed to Temas shareholders in connection with the annual and special meeting expected to be held in mid-August, 2020 with closing of the Transaction anticipated to occur in late-August 2020 upon satisfaction of all conditions.
Rory Kutluoglu, B.Sc, P.Geo, is Temas' Qualified Person as defined by NI 43-101 who has reviewed and approved the technical information contained within this press release.