TORONTO, ON / ACCESSWIRE / September 15, 2020 / Magna Terra Minerals Inc. (the 'Company' or 'Magna Terra') (TSXV:MTT) is pleased to announce that effective September 8, 2020 it has entered into Amended Option Agreements (the 'Agreements') with Spruce Ridge Resources Ltd. ('Spruce Ridge') for both the Viking and Kramer Properties ('Viking', 'Kramer' or the 'Properties') situated near the communities of Pollard's Point and Sop's Arm in White Bay, Newfoundland and Labrador. The original Option Agreements for the Properties were entered into on February 5, 2016 between Spruce Ridge and Anaconda Mining Inc. ('Anaconda') (See Anaconda Press Release dated February 10, 2016). On December 5, 2019 Anaconda assigned its interest in and to the Agreements to a wholly owned subsidiary company - 2647102 Ontario Inc. On August 12, 2020, Magna Terra completed the acquisition of 2647102 Ontario Inc. from Anaconda, and thus took over ownership of the Agreements.
The Viking and Kramer Properties form part of the larger Viking and Great Northern Projects. The Company has recently initiated a systematic exploration program at Viking and Great Northern focussed on expanding zones of known gold mineralization, as well as testing several previously untested high profile targets that could deliver new discovery opportunities.
'We are pleased to restructure these option agreements that favour both Magna Terra and Spruce Ridge. The previous option agreements were structured around a near-term production scenario for the Thor Deposit and the amended agreements are more in line with the exploratory nature of the Viking and Great Northern Projects. Both projects boast significant current and historic mineral resources that have potential for expansion in addition to the excellent exploration potential at the Jacksons Arm, Viking and Little Davis Pond Trends.'
~ Lew Lawrick, President and CEO, Magna Terra Minerals
Highlights of the Viking And Great Northern Projects
- 12,675 hectares along 20 kilometres of strike of a regional-scale gold bearing structure - the Doucer's Valley Fault;
- Projects are host to large untested gold bearing alteration systems:
- 1.7 kilometre zone at the Jacksons Arm Trend;
- 1.4 kilometre long geochemical anomaly at Little Davis Pond Trend; and
- 3+ kilometre long by up to 40 metre wide deformation and alteration zone at the Viking Trend;
- Host to existing Mineral Resources and Historical Mineral Resources including:
- An Inferred Mineral Resource Estimate of 5,460,000 tonnes at an average grade of 1.45 grams per tonne ('g/t') gold containing 255,000 contained ounces at a cut-off grade of 1.0 g/t gold at the Rattling Brook Deposit; and
- An Historical Indicated Mineral Resource of 937,000 tonnes at an average grade of 2.09 g/t gold containing 63,000 ounces of gold plus an Historical Inferred Mineral Resource of 350,000 tonnes at an average grade of 1.79 g/t gold containing 20,000 ounces of gold at a cut-off grade of 1.0 g/t gold at the Thor Deposit (see note on Historical Mineral Resources below).
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All Mineral Resource Estimates were prepared in accordance with NI 43-101 and the CIM Standards (2014). Please refer to the NI 43-101 Technical Report with effective date January 23, 2019 by Harrington and Cullen (2019) as detailed below for the Great Northern Project and the NI 43-101 Technical Report with effective date August 29, 2016 by Copeland et al. (2016) for the Viking Project and the Thor Deposit (see details of Technical Reports below). An Independent Qualified Person has not carried out sufficient work to classify the Thor Historical Mineral Resource Estimate as current and Magna Terra is not relying on this Historical Mineral Resource or considering this Historical Mineral Resource Estimate to be current. Magna Terra considers the Thor Deposit to have potential for expansion that will be addressed by the Company in future exploration programs.
Magna Terra can earn a 100% interest in the Viking and Kramer Projects by paying a total of $300,000 over 4 payment periods ending February 15, 2023. At Magna Terra's election up to half (50%) of the payments can be made via the issuance of common share units (the 'Units'). The number of units will be calculated using the 20-day volume weighted average price ('VWAP') of the Company's common shares on the TSX Venture Exchange immediately prior to the payment date. Each Unit will consist of one common share and ½ common share purchase warrant (the 'Warrants'). Each whole Warrant will be exercisable at a 50% premium to the common share VWAP, for a period of 2 years from the payment date. The Warrant exercise price will not be less than the closing market price of the common shares on the day prior to the payment date. The maximum number of Units issuable by the Company is 740,742. Further, Spruce Ridge is entitled to a 0.5% uncapped NSR on all minerals sales from the Viking Property, and a 2.0% NSR on all mineral sales from the Kramer Property, which is capped at $2,500,000, after which the NSR will be reduced to 1.0%. The Agreements and any securities issuable per the agreements, are subject to TSX Venture Exchange approval.
Launch of new Corporate Website
Magna Terra is also pleased to announce the official launch of its new corporate website and its digital and social media communication platforms. Please visit: www.magnaterraminerals.com and sign up to follow us on Linkedin; Facebook; and Twitter.
Qualified Person and Technical Reports
This news release has been reviewed and approved by David A. Copeland, P. Geo., Chief Geologist with Anaconda Mining Inc., a 'Qualified Person', under National Instrument 43-101 - Standard for Disclosure for Mineral Projects. Widths from drill core intervals reported in this press release are presented as core lengths only.
The Mineral Resource Estimate quoted in this press release regarding the Great Northern Project refers to the technical report: 'NI 43-101 Technical Report and Updated Mineral Resource Estimate on the Rattling Brook Gold Deposit, Great Northern Project, White Bay Area, Newfoundland, Canada', (the 'Great Northern Report') with an effective date of January 23, 2019, and authored by Matthew Harrington, P.Geo. (Independent Qualified Person) and Michael Cullen, P.Geo. (Independent Qualified Person).
The Historical Mineral Resource Estimate quoted in this press release regarding the Viking Project (Thor Deposit) is taken from the technical report: 'NI 43-101 Technical Report And Mineral Resource Estimate For The Thor Deposit, Viking Project, White Bay Area, Newfoundland and Labrador, Canada, Latitude 49o 42′ N Longitude 57o 00′ W' prepared for Anaconda Mining Inc. by David A. Copeland, P.Geo., Dr. Shane Ebert, P. Geo. and Gary Giroux, P. Eng. M.ASc., August 29, 2016.
About Magna Terra
Magna Terra Minerals Inc. is a precious metals focused exploration company, headquartered in Toronto, Canada. Magna Terra owns two district-scale, advanced gold exploration projects in the world class mining jurisdictions of New Brunswick and Newfoundland and Labrador. Further, the Company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina which includes its precious metals discovery on its Luna Roja Project, as well as an extensive portfolio of district scale drill ready projects available for option or joint venture.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward-Looking Information
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words 'may', 'will', 'should', 'continue', 'expect', 'anticipate', 'estimate', 'believe', 'intend', 'plan' or 'project' or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
SOURCE: Magna Terra Minerals Inc.
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