Answer to a forgotten question A bit of ongoing research was instigated by a question someone asked about the JV
with Rio Tinto. I had forgotten all about the Joint Venture and initial 2021 exploration drill program .
The Joint Venture Agreement between Calibre Mining and Rio Tinto was terminiated June 28, 2022 .... all exploration properties included in the former Strategic Alliance Agreement signed in 2020 have reverted back to full 100% control by Calibre Mining.
See page 5 of the Q3 2022 MD&A ......
https://www.calibremining.com/site/assets/files/7144/cxb_q3_2022_final_mda.pdf ".... Termination Option Earn-in and Strategic Alliance Agreements with Rio Tinto Exploration Canada Inc. On June 28, 2022, Rio Tinto Exploration (“RTX”) terminated the Strategic Alliance Agreement dated as of February 23, 2020 between RTX and Calibre. RTX also terminated the Option Agreement dated as of February 23, 2020 between RTX and Calibre, CXB Nicaragua S.A., and Calibre Mining Nicaragua S.A.
RTX has an internal prioritisation process which weighs both technical results and operational risk to ensure their exploration funds are directed to the best portfolio opportunities. Following the Nicaraguan exploration program conducted from 2020-2022, the Nicaragua portfolio of projects associated with Calibre did not achieve sufficient priority within RTX’s global copper portfolio to support their continuation. Consequently, the decision was made by RTX to exit the projects and commercial agreements with the Company. RTX will work closely to transition all data and information to Calibre to allow the Company to continue the work in the area as the sole operator.
Refer to Note 10 of the Company’s condensed interim consolidated financial statements for the three and nine months ended September 30, 2022 for the reclassification of costs associated with the termination of this agreement....." The initial 5500 m exploration drill program for the JV had been announced in a news release dated April 8 2021, but no results have been subsequently released. There was reference in the Q4 2021 MD&A that 4961 m of the progam had been completed but operations were suspended in mid Sept 2021 due to rising Covid cases in the region.
See page 12 of Q4 2021 MD&A
https://www.calibremining.com/site/assets/files/6997/cxb_-_mda_-_ye_2021_-_final.pdf " ...... Borosi Option with Rio Tinto Exploration Calibre is the operating partner in two separate exploration agreements with Rio Tinto Exploration (“RTX”). The agreements are referred to as the Borosi Option and the Strategic Exploration Alliance (“Exploration Alliance”). The Borosi Option includes a portfolio of Calibre-owned exploration concessions located in the Mining Triangle in northeastern Nicaragua. The Exploration Alliance is a strategic partnership between Calibre and RTX that provides both companies with the opportunity to jointly acquire and explore additional mineral concessions within the broader region surrounding the Borosi properties. For details of these agreements, refer to the Company’s Annual Information Form and audited consolidated financial statements for the year ended December 31, 2020, and its related MD&A.
During 2021, exploration conducted under the Borosi Option primarily involved a reconnaissance drilling campaign to test the potential of five prospective porphyry and related skarn style copper-gold and copper-molybdenum targets identified in the historic Rosita and Siuna mining districts. Eighteen holes totaling 4,961 metres were completed, representing 90% of the originally planned 5,500 metre campaign. The drilling campaign was suspended in mid-September as a precautionary response to a rising number of Covid-19 cases in the region. At year-end, integrated data analysis and interpretation of results from this program was in progress for adoption into RTX’ exploration plans for 2022.
The Exploration Alliance received approvals for fifteen new mineral concession applications submitted on behalf of the Alliance partnership and the commencement of regional scale stream sediment sampling aimed at identifying new areas with the potential to host productive porphyry copper style mineralized centers. This initial reconnaissance level work is planned to continue through 2022 with the aim of achieving uniform sampling coverage over the full portfolio of Alliance concessions...." So CXB has 100% control of all those exploration properties again.
GLTA !