VANCOUVER, BC--(Marketwired - February 07, 2017) - TriMetals Mining Inc. (TSX: TMI) (TSX: TMI.B) (OTCQX: TMIAF) (OTCQX: TMIBF), (the "Company" or "TMI"), is pleased to announce that one of its subsidiary companies has acquired the rights to 1,658 acre feet of water per year through a water lease agreement which includes an option to purchase the water rights. These water rights are located in Utah within the Escalante water basin which includes all of the Gold Springs project's lands within Utah. The Company believes that these water rights are sufficient to run a large heap-leach operation and they are in addition to the 965 acre feet of water per year which TMI has rights to within the Escalante Basin within Nevada (PR October 8, 2015). The Company believes that these valuable water resources provide assurances that this critical component for mine development will not be an issue in the future for the Gold Springs project.
Ralph Fitch, President and CEO of the Company stated "With the acquisition of these water rights we continue to de-risk the future mining of the gold and silver resources we are developing at the Gold Springs Project. The water we now have under control is sufficient to run a large-scale heap-leach mining operation and further enhances the value of our project. It has been our goal to not only develop a large economic gold resource but to address any potential issues which could hinder the future development of a large-scale mining operation. With the signing of this water agreement we have done that."
The water lease agreement with an option to purchase continues from year to year with automatic yearly renewal of the terms for 20 years. The annual aggregate lease payment is $300,000, payable in quarterly instalments, and such payments may be offset prior to mining by subleasing the water rights. The lessor of the water rights has retained the right to have returned to it up to 150 acre feet of water from one water right should the lessor determine that it needs such water for its business requirements.
The Company has the option to purchase 1,500 of the 1,658 acre feet per year of water rights leased in the agreement and the price to exercise the option is $7,000,000. The option can be exercised at any time during the 20-year term of the lease.
To protect against inflation, starting in 2020, an annual escalation factor of 3% per year is to be applied to the lease payments and the exercise price of the option.
About TriMetals Mining Inc.
TriMetals Mining Inc. is a growth focused mineral exploration company creating value through the exploration and development of the near surface, Gold Springs gold-silver project in mining friendly Nevada and Utah in the U.S.A.
The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry.
The Company's common shares and Class B shares are listed on the Toronto Stock Exchange under the symbols "TMI" and "TMI.B" and the common shares and Class B shares also trade on the OTCQX market under the symbol "TMIAF" and "TMIBF". Note that the Class B shares have no interest in the properties or assets of the Company other than a collective entitlement to 85% of the net cash, if any, (after deducting all costs, taxes and expenses and the third-party funder's portion thereof) received by TMI from award or settlement in relation to the Company's subsidiary South American Silver Limited's arbitration proceeding against Bolivia for the expropriation of the Malku Khota project in 2012. Additional information related to TriMetals Mining Inc. is available at www.trimetalsmining.com and on SEDAR at www.sedar.com.
