News is out!BeMetals Enters the Gold Sector with Acquisitions in Japan and Announces B2Gold as New Strategic Investor 02/17/2021 07:01 AM ET
February 17, 2021 (ACCESSWIRE via COMTEX News Network) -- VANCOUVER, BC / ACCESSWIRE / February 17, 2021 / BeMetals Corp. (TSXV:BMET)(OTCQB:BMTLF)(Frankfurt:1OI.F) (the "Company" or "BeMetals) is pleased to announce that it has signed an Amalgamation Agreement (the "Agreement") to acquire privately owned Kronk Resources Inc. ("Kronk") and its wholly owned subsidiary Kazan Resources ("Kazan"), which holds the rights to a highly prospective portfolio of advanced and early stage gold exploration projects in Japan (the "Transaction"). See Figure 1 for project locations in Japan. In addition, BeMetals is pleased to announce a non-brokered private placement of $7.5 million (the "Offering") through the issuance of approximately 17.05 million shares of BeMetals at $0.44 per share to senior gold producer and new strategic investor, B2Gold Corp. (TSX: BTO, NYSE American: BTG, NSX: B2G) ("B2Gold"), subject to successful closing of the Transaction. B2Gold is an existing shareholder of Kronk, owning approximately 15.4 million shares of the company. Following the Transaction and Offering, B2Gold will hold approximately 19% of BeMetals' outstanding shares. All dollar figures are in Canadian dollars unless otherwise indicated.
TRANSACTION AND OFFERING HIGHLIGHTS:
Benefits to BeMetals Shareholders
- The Transaction establishes BeMetals in the gold sector with an expertly selected portfolio of gold properties in Japan, including the advanced exploration-stage Kato Project in Hokkaido. This delivers on the goal of identifying quality entry level gold projects;
- Through the Offering, B2Gold will become a new strategic investor and a major shareholder of BeMetals, holding approximately 19% of the Company's outstanding shares post-closing of the Transaction and the Offering. This provides a strong technical cornerstone investor in the Company. In addition, BeMetals will have access to B2Gold's experienced exploration team to assist in evaluating additional precious metals projects;
- Japan possesses extensive geological settings prospective for gold mineralization which have attracted several international gold producers including B2Gold;
- The Offering also provides BeMetals with appropriate capital to advance the Company's gold exploration in Japan, its existing quality exploration and development projects, as well as fund further evaluations for additional precious metals opportunities.
Benefits to Kronk Resources Shareholders
- Provides Kronk investors with exposure to BeMetals' high-grade polymetallic South Mountain Project in Idaho, U.S.A., now entering the Preliminary Economic Assessment stage, and its tier-one targeted, Pangeni Copper Exploration Project in Zambia;
- This Transaction unlocks value for Kronk's investors with a significant return upon its last private fundraising round, and by providing the benefits of a public listing;
- Additionally, Kronk's investors will be well positioned to benefit from both the upside of the gold properties in Japan with further B2Gold investment, and BeMetals' other quality exploration and development assets combined with the strategic growth plans of the Company.
Benefits to B2Gold
- The Transaction allows B2Gold to maintain a strategic investment in precious metals projects that might not otherwise meet B2Gold's investment criteria at the outset. B2Gold may also act as a pipeline for other such precious metals projects for BeMetals to evaluate;
- Positions B2Gold as a strategic investor in an emerging base and precious metals exploration and development resource company with a focused management team, access to capital, internationally recognized advisors, and a highly experienced board of directors;
- The Transaction will provide for the aggressive and focused exploration of these properties in Japan, a country that is attracting increased attention in the gold exploration space.
BeMetals President and CEO, John Wilton stated, "After reviewing numerous precious metals projects we are delighted to have secured this exceptional package of gold properties in Japan. Kronk assembled, with support from B2Gold, this land position in Japan. This Transaction provides BeMetals with excellent direct exposure to gold exploration properties in areas of Japan known to have hosted numerous historical high-grade mines including, but not limited to, the currently operating Hishikari Gold Mine, which produced 7.9 million ounces of gold from 1985-2020 at an average grade of 30-40 grams per tonne gold(1). B2Gold's investment into BeMetals represents a strong endorsement of our team, delivery on existing projects, and for gold exploration in Japan. We believe the strategic investment from B2Gold could open the door to future opportunities both within Japan and in other regions around the world."
Dr. Richard Sillitoe, an internationally recognised expert on the style of gold mineralization seen in Japan and Technical Advisor to BeMetals since inception, conducted field work on the Kato Project, within this package of properties, and other similar projects in Japan during the 1990s. This work was undertaken on behalf of the Metal Mining Agency of Japan, a government entity. He commented, "The Kato Project and its environs appear to possess many of the important geological features required for the formation of high-grade gold mineralization potentially amenable to underground extraction."
Mr. Wilton concluded, "The Company looks forward to defining and testing existing drill targets on the Japan properties with the objective to start field activities shortly. In combination with our existing high-grade polymetallic (zinc-silver-gold-copper) South Mountain Project in Idaho, U.S.A., now entering the Preliminary Economic Assessment stage, and our Pangeni Copper Exploration Project in Zambia, this Transaction creates a unique portfolio of valuable assets to grow the Company."