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Vancouver, B.C. / TheNewswire / October 6, 2016 -
FINORE MINING
INC. (CSE: FIN; OTCQX: FNREF) (the “Company” or “Finore”) –announces that the
Company signed a Definitive Agreement with Utah Mineral Resources LLC (“UMR”) to acquire 100% interest on the Panther Creek Cobalt
(“Co”) property, East-Central Idaho.
The Panther Creek Cobalt Property (“the Property”) is located in the heart of the
Idaho cobalt belt which is home to the Salmon Canyon and Iron Creek Deposits. The property is road
accessible and located 26 miles west of the Salmon, East-Central Idaho. The property consists
of 50 lode mining claims with a total area of 1000 acres located in Lemhi County.
The Property is well located within the vicinity of the Blackbird copper-cobalt Mine in the famous
Blackbird District. The copper-cobalt mineralization is hosted in the micaceous quartzites of the Apple Creek Formation of
the well-known Idaho Cobalt Belt. A historic mine adit on the property was channel sampled by
US Geological Survey and returned 1.04% cobalt and 4.14% copper across 10 feet or 3.04 metres (Re: US Geol. Surv. Open File Report
98-478). Extensive exploration consisting of detailed geological mapping emphasizing stratigraphy and structure, systematic
geochemical soil sampling and trenching is required to confirm the historical result as this does not conform to the NI 43-101
rules and regulations.
Idaho cobalt belt
The Idaho cobalt belt trends northwest-southeast for nearly 60 km in east-central Idaho (Fig. 1).
Included within this belt are numerous historic mines and prospects of the centrally located Blackbird district, the Salmon Canyon
deposit at the northwest end, and deposits of the Iron Creek area at the southeast end (U.S. Geological Survey, 2010). The Idaho
cobalt belt is important nationally because it contains the largest known cobalt resources in the United States (Slack et al.,
2012). Ecobalt Solutions Inc. is developing the Idaho Cobalt Project, located in the Blackbird district. Ecobalt
completed a Preliminary Economic Assessment with a measured and indicated resource of 3.48 million tonnes grading 0.55% Co and
0.85% Cu.
History and production
Production in the Blackbird district began in 1917 following initial discovery of the sulfide
deposits in 1893. Minor Co was produced from 1917 to 1920 at the Haynes-Stellite Mine (Bennett, 1977). Major production began in
1949 and continued intermittently to 1960 at the Blackbird (Uncle Sam) underground mine and the Blacktail open pit, which together
yielded ca. 5 Mt of ore averaging 1.5 wt % Cu and 0.6 wt % Co.
The location of the Idaho Cobalt Belt with the historic mines and occurrences is shown in the
figures below. The Panther Creek prospect is located in the Blackbird district.
Click Image To View Full Size
Map of central Idaho showing location of mineral deposits (modified, Lund, et al, 2011. Econ Geol.
v.106) Dot overlay shows location of Idaho cobalt belt. Index map is (upper right) shows location of Late Cretaceous Idaho
batholith relative to area of this figure. Numbers refer to important named mines and prospects: 1 = Yellowjacket mine, 2 = Salmon
Canyon copper mine, 3 = more than 40 deposits of the Blackbird district including the Panther Creek property, 4 = Musgrove
prospect, 5 = Blackpine mine, 6 = Iron Creek prospect, 7 = Spring Creek deposits, 8 = Shoup area mines, 9 = Pine Creek mines, 10 =
Diamond Creek mines, 11 = Copper King mine, 12 = Pope Shenon mine, 13 = Woods Creek deposit, 14 = McConn Creek deposit, 15 =
Ulysses mine, 16 = Lemhi Pass thorite mines and prospects, 17 = Copper Queen Mine
Click Image To View Full Size
Click Image To View Full Size
FIG. 2. Generalized geologic map of the Blackbird district showing strata-bound and
discordant mineral deposits ((Slack, 2012. Econ.Geol. v.107).
Why Cobalt?
The Board of Directors are looking forward to be exploring for Cobalt in the well-known
Idaho Cobalt Belt. Cobalt is considered to be a metal of the future with growing demand in technology, health and energy
industries. The main components of electric vehicle motors and many rechargeable
Lithium-ion batteries, contain as much as 60%
cobalt. A sustained cobalt price growth could occur over the next few years as battery demand
grows, driven by electric car battery market expansion in line with demand for low emission vehicles
Consideration for the Property:
To acquire 100% of the Panther Creek Cobalt Property, the Company will:
Fund and incur Exploration Expenditures of $375,000 over an Earn-In-Period of three (3.)
years from the date of signature of the Option Agreement.
-on or before the first anniversary of the Execution Date: $ 75,000
(seventy five thousand dollars)
-on or before the second anniversary of the Execution Date: $ 100,000 (one
hundred thousand Dollars.
-on or before the third anniversary of the Execution Date: $ 200,000 (one
hundred thousand Dollars).
In addition to incurring the above Exploration Expenditures, Finore will
pay UMR each of the following option premium amounts during the Earn‑In Period in cash or shares in the Company
.
-on the Execution Date: $ 25,000 within 14 days of Exchange Acceptance and
issue to UMR a total of 3,500,000 common shares of Finore at a deemed value of $0.05 per share;
-on or before the first anniversary of the Execution Date: the sum of
$ 150,000 or the equal value in common shares of Finore; and
-on or before the second anniversary of the Execution Date: the sum of
$ 150,000 the equal value in common shares of Finore.
-In the event that proven and probable
mineral resources for the purposes of NI 43-101, of at least of 4 million tonnes grading a minimum 0.25% Co is determined on the
Property by Finore or before the 5 year anniversary of the Effective Date, Finore shall issue to UMR an additional 2,000,000
common shares in the capital of Finore.
Name Change
The Company is planning to apply to regulatory authorities for a name change to Hybrid Minerals
Corp.
Private Placement:
The Company also announces that it will conduct a non-brokered private placement of up to
20,000,000 units (the “Units”) at a price of $0.10 per Unit to raise total gross proceeds of up to $2,000,000. Each Unit will
consist of one common share of the Company (a “Share”) and one half (1/2)
transferable common share purchase warrant (a
“Warrant”). Each whole Warrant will be exercisable to acquire one additional Share
for a period of two (2) years from the closing of the Private Placement at
an exercise price of $0.25 per share. In the event that the common shares of the Company trade at a closing price in excess
of $0.20 per share for a period of 10 consecutive trading days at any time after four months past the closing date, the Company
will accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case, the warrants will expire
on the 30th day after the date on which such notice is given by the
Company.
The net proceeds from the Offering will be used for the option payments and first year work program on the Panther Creek Property, general working capital,
clearing outstanding payables and for evaluating other green metal properties.
The non-brokered private placement is subject to the completion and execution of
appropriate documentation, acceptance for filing by the Canadian Securities Exchange and receipt of any required regulatory
approvals.
Mohan R. Vulimiri, M.Sc., P.Geo, Director of Finore, is a Qualified Person as defined by NI
43-101. Mr. Vulimiri has approved the corporate and technical content contained in this press release
On behalf of the board of
directors of Finore Mining Inc.,
“Peter Tegart”
Peter Tegart
President & CEO
The CSE does not accept responsibility for
the adequacy
or accuracy of this
release.
The forward-looking information contained in
this press release is
made as of the
date of this press release
and, except as required by applicable
law, the Company does not undertake
any obligation to update publicly
or to revise any
of the included forward-looking information,
whether as
a result of new information, future
events or otherwise, except as may be
required by law. By its very nature, such forward-looking information requires the Company to
make assumptions that may not materialize or that may
not be accurate. This forward-looking information is
subject to known and
unknown risks and uncertainties and other factors, which may cause actual results, levels
of activity
and achievements to differ materially from those expressed or implied by
such information.
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