CMC Metals to increase Radcliffe interest to 50%
Mr. Michael Scholz reports
PURCHASE OF ADDITIONAL INTEREST IN THE RADCLIFF GOLD PROPERTY/CLOSING OF THE 1,000,000 UNIT FLOW-THROUGH PRIVATE PLACEMENT @ $0.20 PER UNIT
CMC Metals Ltd. has negotiated and signed a purchase agreement for a 50-per-cent ownership interest in the Radcliff property, up from the previously announced 25 per cent on May 3, 2011, with Pruett Ballarat Inc. and the vendor of the claims. A total of 94 unpatented claims, 10 patented claims and one patented mill site claim are included in the purchase, and negotiations have been continuing for the past four months. Terms of the purchase include a $100,000 payment to the propertyowner on signing, plus a further $900,000 on the closing date of April 16, 2012. The agreement has a net smelter return royalty of 5 per cent back to the vendor, with an option to buy out the royalty for $1-million within one year of the closing date. The $1-million provided by the company toward the purchase of the Radcliff property will be returned on a first-priority basis from the net proceeds from the mine production under the joint venture agreement with PBI. The current production plan for the Radcliff mine is sufficient to provide over three years of ore for the Bishop mill facilities. The company has also advanced an additional $150,000 toward the joint venture with PBI, which funds have been used to improve the road access to the Radcliff property and toward certain equipment costs related to the underground workings. The Bishop mill is a suitable facility to process the Radcliff mine ore. Approval by the Water Board has been received for the new tailings pond at the Bishop mill, and the amended plan of operation is currently being reviewed for acceptance. Once the amended plan of operations is approved, stockpiling of the Radcliff ore and work on the new tailings pond will commence.
The Radcliff (Worldbeater) mine is located eight kilometres from the town of Ballarat and 13 km northeast of the operating Briggs mine. The current mine developments occur at the upper elevations (4,530 to 6,580 feet) of the Panamint Mountain Range. Mineralization occurs within quartz-sulphide veins, disseminated sulphides and locally massive sulphides which were emplaced along zones of shearing and dilatency within the argillite and amphibolite units. These units and unconformities structurally overlie quartzofelspathic gneisses and granites of the Worldbeater complex.
The company further wishes to announce that it has completed its previously announced private placement (see press release dated Dec. 8, 2011) of up to one million flow-through units at a price of 20 cents per FT unit for aggregate gross proceeds of $200,000. Each FT unit consists of one common share in the capital of the company which will be designated as a flow-through share pursuant to the Income Tax Act (Canada) and one common share purchase warrant. Each warrant entitles the holder to purchase one flow-through common share in the capital of the company at a price of 25 cents per share for a period of one year expiring Dec. 16, 2012. The original terms of the placement as announced Dec. 8, 2011, were amended in that the warrant exercise price was reduced to 25 cents per share from the originally announced price of 30 cents per share. No finder’s fee was payable pursuant to this transaction.
In compliance with NI 43-101, Don Wedman, PEng, president and chief executive officer of the company, is the qualified person who prepared or supervised the preparation of the technical information presented in this news release.
