Casa Minerals Options 90% of Congress Gold Mine in Arizona and Announces $2,500,000 Non-Brokered Private Placement
03.03.2021 | 16:00 Uhr | Accesswire
VANCOUVER, March 3, 2021 - Casa Minerals Inc.
(TSXV:CASA) (OTC PINK:CASXF) (FSE:0CM) (the "Company" or "Casa") is pleased to announce that the Company has optioned the Congress Gold Mine located in west-central Arizona, USA. The historic Congress Gold Mine is located three miles north of Congress in Martinez Mining District of Yavapai County. The property consists of 14 Patented Mineral Properties with approximately 260 acres area. Commencing in or about 1887, the Congress mine operated at intervals until 1992 and at one time supported a full scale mining and milling operation and the small town of Congress. It has the distinction of being Arizona's largest gold-silver mine with production of about 500,000 ounces of gold.
Casa entered into an option agreement with the owners of the Congress Gold Mine (the "optionors") whereby Casa Minerals may acquire a 90% interest in the Congress mine and adjoining mineral properties by making option payments to the optionors of US$100,000 (US$50,000 on completion of due diligence, US$50,000 12 months after TSXV acceptance), issuing 2,500,000 shares (1,250,000 shares on TSXV acceptance and 1,250,000 12 months after TSXV acceptance) and committing to exploration expenditures of $2,000,000 within three years. The optionors will retain a 1.5% NSR of which one third may be purchased for $2,500,000. If a potentially viable NI43-101 mineral reserve is developed, the Company will make payments of US$500,000 per every 100,000 oz of gold in reserve up to a maximum of US$10,000,000. Ownership of surface rights to a depth of 40 feet from surface are excluded from the purchase agreement.
The option agreement and the transactions contemplated there are subject to acceptance of the TSX Venture Exchange.
Congress Gold Mine has a history of intermittent production since 1887. Several different operators produced gold-rich material from some of the 45 gold-bearing veins and structures that have been identified by surface sampling and geological mapping. Most production is reported to be from the sub-parallel Congress and Niagara Veins that occur in a northwest-southeast trend across the property. Although production records are incomplete, mineralized material with 0.7 oz gold per ton are reported from the Congress vein; overall mine-life averages were probably close to 0.3 ounces gold per ton. The Congress has been idle since 1992 when mining ceased, possibly in part due to a dispute between the then-operator and the owners. The mine has not been evaluated and explored using present day methods and economics.
Casa Minerals will conduct thorough reviews of regional and property data, with particular attention to extensions of production areas and to the many mineralized structures that never achieved production. Also, it appears as if some of the mined out parts of the mine were filled with low grade "waste" materials that were uneconomic at the time but possibly now have value. Available property maps will be evaluated and added to a new data base.
Non-brokered Private Placement
Casa Minerals is arranging a $2,500,000 financing at $0.125 per unit (a "Unit"). Each Unit will consist of one share and one share purchase warrant, with each warrant entitling the holder to acquire one additional share at a price of $0.30 per share. The expiry date of the warrants may be accelerated at the option of the Company if the average closing price is greater than $0.45 per share for a period of 10 trading days. The private placement is subject to acceptance of the TSX Venture Exchange.
Cautionary Note: All historic data referenced in this news release were obtained from available archives and have not been confirmed or verified by the Company or a Qualified Person. There is no assurance that work by Casa Minerals will result in identification of economically-viable mineral bodies comparable in size and/or grade to those that supported historic mining operations.
Mr. Erik Ostensoe P.Geo., a director and chief geologist of the Company, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure in this news release.
On Behalf of Board of Directors
Farshad Shirvani, M.Sc. Geology
President and CEO
For more information, please contact:
Casa Minerals Inc.
Farshad Shirvani, President & CEO
Phone: (604) 678-9587
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
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.
SOURCE: Casa Minerals Inc.