Grizzly, Acquire "s Motherlode grants 2024-06-17 11:08 ET - News Release
Mr. Brian Testo reports
GRIZZLY TO ACQUIRE THE MOTHERLODE CROWN GRANTS IN THE GREENWOOD DISTRICT PRECIOUS AND BATTERY METALS PROJECT, BC
Grizzly Discoveries Inc. has entered into a purchase agreement with First Majestic Silver Corp. to acquire the Motherlode Crown grants, host to the historical Motherlode, Sunset, Sunrise and Greyhound mines that at various times during the early and middle 1900s produced copper (Cu), gold (Au) and silver (Ag) from both open pit and underground workings.
The Motherlode Crown grants comprise 13 Crown grants that all retain the subsurface mineral rights and date back to the late 1800s early 1900s when they were granted. The Crown grants cover a number of historical mines, including the Motherlode mine, which produced 76,975,111 pounds of Cu, 173,319 ounces of Au and 688,203 ounces of Ag during the active periods of mining from 1900 to 1920 and then from 1957 to 1962. The Motherlode skarn mineralization is developed in the Triassic Brooklyn formation sediments (BC Minfile 082ESE034). The Motherlode mine is road accessible and is approximately 2.5 kilometres northwest of the town of Greenwood in British Columbia.
Brian Testo, president and chief executive officer of Grizzly Discoveries, stated: "We are excited to have reached an agreement to acquire the historical Motherlode mine. We look forward to an aggressive year drilling at the Motherlode mine and other high-grade gold-silver-copper showings and historical mines in 2024 along with additional exploration for significant battery metals in our current 170,000-plus acre landholdings in the Greenwood district."
Summary of the terms of the purchase agreement:
- The company will cover all costs related to the transfer of the Crown grants from First Majestic to the company.
- As consideration, Grizzly will issue First Majestic 250,000 common shares of the company upon closing of the transaction.
- At closing, the company will grant a 1-per-cent net smelter return (NSR) royalty on the Crown grants to First Majestic and retains an option to purchase the NSR royalty for $250,000 at any time.
The issuance of the consideration shares is subject to the acceptance of the TSX Venture Exchange.
The technical content of this news release and the company's technical disclosure has been reviewed and approved by Michael B. Dufresne, MSc, PGeol, PGeo, who is a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
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