Trilogy Metals announces South32 to fund US$10 Million 2018 Program and Budget for the Bornite Project
VANCOUVER, Dec. 14, 2017 /CNW/ - Trilogy Metals Inc. (TSX, NYSE-MKT: TMQ) ("Trilogy" or "Trilogy Metals") is pleased to announce that South32 Limited (ASX/JSE/LSE: S32) ("South32") has committed to fund the US$10 million 2018 program and budget for the Bornite Project. The funds, which represent the second tranche of US$10 million, maintains the Option Agreement (see below) in good standing, and will be transferred before January 31, 2018. The 2018 program will include in-fill and off-set drilling to better define and expand the high grade copper resources at Bornite. The 2018 Program was recently approved by the joint Trilogy-South32 Technical Committee.
Trilogy Metals recently completed the first US$10 million exploration drill program at Bornite that was funded by South32. The 2017 program had been previously approved by the joint Technical Committee and was focused on drilling the extensions of mineralization last drilled by the Company in 2013. Results of this year's exploration program at the Bornite Project were released by Trilogy Metals on September 18, 2017 (https://Trilogy PR Sep 18 2017) and December 4, 2017 (https://Trilogy PR Dec 4 2017). The 2017 drilling program doubled the size of the known mineralized footprint and continues to demonstrate that the high-grade Bornite copper resource system is open to further expansion.
On April 10, 2017 Trilogy announced it had entered into an agreement with South32 whereby Trilogy has granted South32 an option to form a 50/50 joint venture with respect to Trilogy's Alaskan assets, known collectively as the Upper Kobuk Mineral Projects ("UKMP"), which includes the Arctic and Bornite Projects, the Exploration and Option to Lease Agreement with NANA Regional Corporation, Inc. ("NANA"), and the remainder of Trilogy's state mining claims along the 100km volcanogenic massive sulphide belt. South32 must contribute a minimum of US$10 million each year, for a maximum of 3 years, to keep the option in good standing ("Initial Funding"). South32 may exercise its option at any time to form the 50/50 joint venture ("JV"). To subscribe for 50% of the JV, South32 will contribute a minimum of US$150 million, plus any amounts Trilogy spends at the Arctic Project over the initial three years to a maximum of US$5 million per year (the "Subscription Price"), less an amount of the Initial Funding contributed by South32 (https://Trilogy PR April 10 2017).
About Trilogy Metals
Trilogy Metals Inc. is a metals exploration company focused on exploring and developing the Ambler mining district located in northwestern Alaska. It is one of the richest and most- prospective known copper-dominant districts located in one of the safest geopolitical jurisdictions in the world. It hosts world-class polymetallic VMS deposits that contain copper, zinc, lead, gold and silver, and carbonate replacement deposits which have been found to host high grade copper mineralization. Exploration efforts have been focused on two deposits in the Ambler mining district - the Arctic VMS deposit and the Bornite carbonate replacement deposit. Both deposits are located within the Company's land package that spans approximately 143,000 hectares. The Company has an agreement with NANA Regional Corporation, Inc., a Regional Alaska Native Corporation that provides a framework for the exploration and potential development of the Ambler mining district in cooperation with local communities. Our vision is to develop the Ambler mining district into a premier North American copper producer.