Phoenix Metals options 60% of Peace to Prime Meridian 2014-11-03 15:51 ET - News Release
See News Release (C-PHC) Phoenix Metals Corp
Mr. Brian Leeners reports
OPTIONS 60% INTEREST IN PEACE RIVER FRAC SAND PROJECT TO PRIME MERIDIAN RESOURCES CORP.
Phoenix Metals Corp. has entered into a binding letter of intent with Prime Meridian Resources Corp. to option a 60-per-cent interest in the company's four Peace River frac sand permits.
Terms of the option:
- One-time cash payment of $50,000;
- Cumulative work expenditures of $500,000 over 24 months.
The Peace River frac sand project is subject to a 2-per-cent royalty (gross-overriding royalty (GORR)) on production (1 per cent of which can be purchased for $1-million). The transaction is subject to TSX Venture Exchange acceptance.
Peace River frac sand project
The project is located north of the community of Peace River, Alta., adjacent to the Peace River frac sand quarry, which is owned and operated by Canadian Silica Industries. It extends for approximately 40 kilometres along the Peace River, straddling both the east and west banks where the target unit is exposed. Within the region, the Lower Cretaceous Paddy member of the Peace River formation is currently mined for frac sand. The Paddy member is a friable sand unit representing a shoreline facies deposited in a fluvial environment, with a thickness up to 16.5 metres (7.7 m average). The sand grains are almost entirely colorless quartz and the beds are dominantly uncemented, which is ideal as a frac sand proppant in hydraulic fracturing.
The Peace River frac sand quarry of Canadian Silica Industries reportedly has a total annual capacity of 500,000 tonnes of silica sand. It is in proximity to infrastructure including rail and roads, and located near the community of Peace River. Additionally, it is located close to the Horn River, Montney and Cardium shale gas basins, and is central to the frac sand market within northwestern Alberta and northeastern British Columbia.
The permits surround the claims of the 500,000-tonne-per-year-capacity silica sand mine privately owned by the Laprarie Group and operated by Canadian Silica Industries.
The technical information in this news release was approved by Stephen Wallace, PGeo, a qualified person under National Instrument 43-101.
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