Antofagasta Signs Agreement with Evrim for Ball Creek Project
TSX VENTURE: EVM
Vancouver, British Columbia--(Newsfile Corp. - February 7, 2017) - Evrim Resources Corp. (TSXV: EVM) ("Evrim" or the "Company") is pleased to announce it has signed an Exclusivity Agreement (the "Agreement") with a wholly-owned subsidiary of Antofagasta plc ("Antofagasta") on the Ball Creek property in British Columbia. Antofagasta will have the exclusive right to complete due diligence and negotiate a definitive agreement (the "Definitive Agreement") to acquire up to a 70% interest in the Ball Creek property by spending up to US$31 million.
"Ball Creek is a large land package in the Golden Triangle that carries significant district scale exploration potential for gold rich copper porphyry targets," commented Evrim's CEO Paddy Nicol, "Our exploration work over the past two summers coupled with previous data sets demonstrate the potential for multiple discoveries at Ball Creek. We look forward to completing the definitive agreement with Antofagasta this spring and commencing exploration at Ball Creek this summer."
Evrim acknowledges that Ball Creek is situated in the traditional territory of the Tahltan Nation and is committed to developing a positive and mutually beneficial relationship based on respect and transparency.
Under the terms of the Agreement, Antofagasta will conduct due diligence and may provide funding for planning activities up to the signing of a Definitive Agreement, which is expected to be completed on or before April 15, 2017. Upon the execution of the Definitive Agreement, Antofagasta will take an option to acquire up to a 70% interest in Ball Creek by spending US$31 million over a thirteen year period, with a minimum commitment of US$300,000 in 2017.
Upon the execution of the Definitive Agreement Antofagasta can earn an initial 51% interest ("Initial Interest") by spending US$6 million over a six year period. Once Antofagasta has earned its Initial Interest, it may elect to earn an additional 19% interest ("Additional Interest") by spending either US$25 million or completing a prefeasibility study (with expenditures capped at US$25 million), over a seven year period. If Antofagasta elects not to earn the Additional Interest, it will transfer a 1.01% interest to Evrim in exchange for a 0.25% NSR, and Evrim will regain a controlling interest in Ball Creek. Evrim will be the operator on the Ball Creek property during the Initial Interest phase.
About the Ball Creek Project
The Ball Creek Project is a large 524 square kilometre copper-gold porphyry and epithermal gold-silver project located in northwest British Columbia's Golden Triangle, located only eight kilometres west of Highway 37 and the 287 kV Northwest Transmission Line. The project contains four separate porphyry systems distributed across the property and in close proximity to the Triassic/Jurassic unconformity, a similar setting to major deposits including Red Chris, KSM, Spectrum/GJ, and Snip.
Within the concession significant potential exists at the Mess Creek, More Creek, Rainbow, and Ball Creek porphyry systems. The Ball Creek Porphyry has received the majority of exploration, with the other porphyry systems having seen only limited drilling. Drilling by previous operators has intersected:
Ball Creek Porphyry
- 231 metres grading 0.21% copper and 0.54 g/t gold in drill hole BC07-12, including 45.8 metres grading 0.31% copper and 0.69 g/t gold
- 223 metres grading 0.21% copper and 0.28 g/t gold in drill hole BC06-03, including 45 metres grading 0.35% copper and 0.52 g/t gold
- 139 metres grading 0.23% copper and 0.59 g/t gold in drill hole BC07-06
- 74 metres grading 0.21% copper and 0.51 g/t gold in drill hole BC12-54
- 91 metres grading 0.05% copper and 0.76 g/t gold, including 42.9 metres of 0.06% copper and 0.99 g/t gold
The 2016 work program recognized new untested targets within the Ball Creek Porphyry and Rainbow systems defined by open drill intersections, alteration, geochemistry and geophysics.
About Evrim Resources
Evrim Resources is a mineral exploration company whose goal is to participate in significant exploration discoveries supported by a sustainable business model. The Company is well financed, has a diverse range of quality projects and a database in Mexico and portions of southwestern United States. The existing projects, and generation of quality exploration targets and ideas, are advanced through option and joint venture agreements with industry partners to create shareholder value. Evrim's business plan also includes royalty creation utilizing the Company's exploration expertise and existing projects.