CMC Metals Ltd. Options the Silverknife Property to Coeur Mining, Inc.

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CMC Metals Ltd
CMC Metals Ltd

VANCOUVER, British Columbia, Nov. 20, 2024 (GLOBE NEWSWIRE) -- CMC Metals Ltd. (TSX-V: CMB) (Frankfurt:ZM5P) (“CMC” or the “Company”) is pleased to report that it has entered into an option agreement (“Agreement”) with Coeur Silvertip Holdings, Ltd. (“Coeur”), a subsidiary of Coeur Mining, Inc. (NYSE: CDE) on its Silverknife Property (“Property”) in north-central British Columbia.

The Agreement paves the way forward for Coeur to undertake a significant, multi-year exploration program on the Property. The Agreement provides Coeur with the ability to earn a 75% interest in the Property, following which Coeur has a right to either purchase the property or enter a Joint Venture arrangement with CMC. The total commitments to earn 75% amount to $4,050,000 in the aggregate, of which $500,000 Cdn is cash payments to CMC and $3,550,000 Cdn is exploration expenditures. Purchase of the remaining 25% interest would require an additional buyout payment that would take the aggregate commitment to $6.3M Cdn, and the Property would remain subject to an existing NSR. The Agreement contains the commitments as follows:

Item

Date/Period

Expenditures

Option
Payments

1

Within ten (10) business days of the Effective Date

 

$

100,000

2

On or before December 31, 2024

$

150,000

 

--

3

On or before March 31, 2025

 

--

$

100,000

4

On or before December 31, 2025

$

550,000

 

--

5

On or before March 31, 2026

 

--

$

100,000

6

On or before December 31, 2026

$

800,000

 

--

7

On or before March 31, 2027

 

--

$

100,000

8

On or before December 31, 2027

$

950,000

 

--

9

On or before March 31, 2028

 

--

$

100,000

10

On or before December 31, 2028

$

1,100,000

 

--

Cumulative Total

$

3,550,000

$

500,000

 

Once Coeur has completed the expenditure and option payment commitments to earn at least a 75% interest in the Property, it then also acquires:

  • A right of first refusal to purchase CMC’s Amy property, a high-grade Carbonate Replacement Deposit (“CRD”) target located approximately 6 km west of the Silverknife Property;

  • Any expenditures made by Coeur in excess of $3,550,000 up to December 31, 2028, will be credited towards Coeur’s right to a Buyout or, if no Buyout is exercised, to Coeur’s account to increase its interest in the Joint Venture;

  • Two distinct buyout options for the remaining 25% interest:

    1. Buyout Payment: Within 60 days of earning its 75% interest, Coeur has the right to buy out CMCs’ remaining interest by paying $2,250,000 Cdn.

    2. Joint Venture: If Coeur does not exercise the buyout payment option, then the parties will establish a joint venture that will fund the ongoing operations according to their proportionate interests. Coeur will have the right to increase its interest in the joint venture, earning an additional 0.5% interest for every $100,000 spent on expenditures, up to a maximum of 90% of CMCs remaining interest, provided these additional expenditures occur before December 31, 2030. Coeur may, at its discretion, purchase the remaining interest from CMC for $3,000,000 Cdn subject to certain additional conditions.

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