Medford, Wisconsin – September 26, 2022 (Newsfile Corp.) (Investorideas.com Newswire) Green Light Metals Inc. (“Green Light” or the “Company”) is pleased to announce that on September 21, 2022 Green Light’s wholly-owned subsidiary Green Light Wisconsin LLC (the “Purchaser”) acquired a 100% interest in the Kalium Canyon Project in the Walker Lane district of Nevada from Renaissance Exploration Inc., a wholly-owned subsidiary of Orogen Royalties Inc. (collectively, “Orogen”) (the “Transaction”). Orogen will receive C$30,000 in cash, 1,000,000 common shares of the Company, and a net smelter return (“NSR”) royalty of up to 3%, of which 1% can be purchased for US$2 million. The Kalium Canyon Project was previously subject to an option agreement dated June 21, 2021, between Orogen and the Company’s wholly-owned subsidiary Badger Minerals LLC (the “Option Agreement”).
“As evidenced by past surface investigations and exploration drilling, the Kalium Canyon Project has the potential to host epithermal mineralization similar to many other gold discoveries in the Walker Lane,” commented Green Light President & CEO Dan Colton. “We are pleased to acquire a 100% interest in the project, providing Green Light with maximum flexibility to advance Kalium Canyon and unlock its value for our shareholders.”
About the Kalium Canyon Project
The Kalium Canyon Project covers 135 unpatented lode mining claims in the Walker Lane district of Nevada where many low sulfidation epithermal gold discoveries in Nevada have been found, including North Bullfrog, C-Horst/Lynnda Strip, Silicon, Eastside, and Goldfield. Locally, the project lies within the Red Mountain district.
The Kalium Canyon Project comprises the Argenta prospect and the Kalium Canyon prospect (see Figure 1). A block of 80 “Kalium” claims cover the prospective mineralization system at the Kalium Canyon prospect. To the east, the “Marty” claims that comprise the Argenta prospect were acquired by Orogen from Bridgeport Gold Inc. in June 2021. In December 2021, the Purchaser staked the “GLM” claim block adjoining the east boundary of the Marty claims. These newly staked claims cover the eastern extension of the Argenta prospect. The property covers a total of approximately 2,758 acres (1,117 ha).
The undrilled Kalium Canyon prospect is characterized by a 1-2 km long zone of alunite-kaolinite alteration interpreted to be a steam-heated cell. Similar argillic alteration and associated siliceous sinters are found overlying epithermal gold mineralization at the Argenta prospect. Siliceous sinters provide evidence of underlying hydrothermal fluid flow and are an important exploration tool when searching for low-sulfidation epithermal gold mineralization.
The character of mineralization at the Argenta prospect is best exemplified by the main mineralized zone historically targeted by exploration, defined initially by Camnor Resources Ltd. in the late 1990s, called the Adit Zone. The Adit Zone refers to an extensive zone of gold bearing quartz veining, breccia and stockwork located in the footwall of a southward dipping, east-northeast trending fault. The host lithology is a variably silicified and argillically altered latite porphyry. Mapping has traced the Adit Zone for 2,000 feet (610 m).
In 1947, an 80-foot (24 m) adit was completed that tested a part of the Adit Zone. The adit exposes several parallel quartz veins throughout the zone. Continuous chip sampling of a 167-foot (50.9 m) section of the adit is reported to have returned an average of 1.97 gpt gold. Rock chip samples of the silicified zone exposed in the adit were reported by Camnor Resources to return a value of 3.74 gpt gold across 50 feet (15.2 m).
Drilling shows the Adit Zone to be composed of at least two, possibly three, distinct mineralized structures composed of quartz veining and stockwork. The grade of each of these structures and of the Adit Zone itself varies considerably along strike and down-dip. The best intersections occur in the vicinity of the historic adit and include a 270-foot (82.3 m) section averaging 0.86 gpt gold.
The historic exploration results indicate that potentially economic gold grades are found over lengths that warrant further exploration for both bulk-tonnage and high-grade precious metal deposits. Furthermore, geologic indicators interpreted to vector toward buried epithermal deposits are present at the Argenta prospect and reported at the Kalium Canyon prospect area. These indicators include host rock alteration and paleosurface features, such as siliceous sinters, commonly interpreted to overlie hydrothermal systems related to epithermal precious metal deposits.
The Company has filed on www.sedar.com a technical report titled “Kalium Canyon, Goldfield Quadrangle, Esmeralda County, Nevada, United States of America” with an effective date of January 12, 2022 (the “Kalium Canyon Property Technical Report”). The Kalium Canyon Property Technical Report was prepared by Peter Bittenbender, a “qualified person” as such term is defined in NI 43-101.
Figure 1 – Mineralized structures near Kalium Canyon. Geology from Stewart et al (1974)
Pursuant to a Property Purchase Agreement dated September 14, 2022 between Badger Minerals LLC, the Purchaser, the Company, and Orogen (the “PSA”), the Purchaser has acquired the Kalium Canyon Project for C$30,000 in cash and the issuance of 1,000,000 Company common shares.
In the event the Company is not listed on a Recognized Canadian Exchange, as such term is defined in the PSA, by September 21, 2024, the Purchaser shall pay Orogen an additional C$100,000 in cash.
The Company will also issue Orogen additional Green Light common shares should the Listing Price, as such term is defined in the PSA, on a Recognized Canadian Exchange be less than $0.40 per Green Light common share.
The Option Agreement has been terminated, eliminating all future work commitments as well as significant future option payments totaling US$1,725,000.
Pursuant to a Net Smelter Returns Royalty Agreement between the Purchaser and Orogen dated September 21, 2022, the Purchaser has granted to Orogen up to a 3% NSR (the “Royalty”) on the Kalium Canyon Property. In the case of claims with an existing underlying royalty, the Royalty payable to Orogen will be reduced such that the total royalty on any claim shall not exceed 3%. In the event the Purchaser acquires additional claims within a 1-kilometer wide radius surrounding the perimeter of certain existing Kalium Canyon Project claims (the Kalium and Marty claims as shown in Figure 1), Orogen shall be granted a 3% NSR Royalty on these claims.
The Purchaser has the right to purchase one-third of the Royalty (i.e., an undivided 1% of Net Smelter Returns) at any time by making a cash payment of US$2,000,000.
Within 60 days following the Commencement of Commercial Production, the Purchaser will pay Orogen a one-time payment of US$5.00 per ounce of Gold Equivalent, on ounces of Gold Equivalent contained in 8 of the 135 claims (for which, as a result of underlying royalties, the Royalty to Orogen is 0%) based on the NI 43-101 mineral reserve and mineral resource estimates set out in the then current feasibility study relating to the Kalium Canyon property, provided that this production payment shall be capped at a maximum of US$5,000,000.
The Purchaser and Orogen will work together to finalize certain post-closing matters in the coming weeks.
Qualified Person Statement
All technical data, as disclosed in this press release, has been verified by Peter Bittenbender, a “qualified person” as defined under the terms of National Instrument 43-101.
ABOUT GREEN LIGHT
Green Light’s mission is to expand known mineral resources and make new discoveries on one of North America’s most prolific yet underexplored volcanogenic massive sulfide (“VMS”) greenstone belts – the Penokean Volcanic Belt (the “Belt”) in Wisconsin, USA. The Belt’s deposits are rich in the clean energy metals copper and zinc, as well as gold, that are required to power the imminent green, low carbon economy. The Company’s strategy is to capitalize on its first mover advantage to consolidate, secure, and drill dominant land positions.
Green Light is committed to operating in a responsible and sustainable manner that benefits our local communities, bolsters national security, and assists in building and securing crucial US supply chains, all while protecting the environment. The Company has established an Environment, Sustainability, and Communities Committee and is fully committed to transparency, accountability, environmental stewardship, safety and community engagement.
The Company’s key assets on the Belt are the Reef gold-copper and Bend copper-gold properties, each of which contains known historical resources with the potential for expansion. In addition, with the closing of the amalgamation with Can-America Minerals Inc. on July 25, 2022, the Company now controls two additional prospective properties in Wisconsin – Lobo and Black. Outside of Wisconsin, the Company now owns 100% of the Kalium Canyon property, an exciting epithermal gold prospect located in the Walker Lane district of Nevada.
For more information, please contact:
Green Light Metals Inc.
President & CEO, Director
CFO & Corporate Secretary
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “intend”, “may”, “will”, “expect”, and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current beliefs or assumptions as to the outcome and timing of such future events. Readers are cautioned to not place undue reliance on forward-looking information. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The material facts and assumptions include the potential of the Kalium Canyon Project and the ability to list on a Recognized Canadian Exchanged at the Listing Price on the timelines outlined in the PSA and risk factors including, but not limited to , business and economic conditions in the mining industry generally; changes in commodity prices; changes in interest and currency exchange rates; risks relating to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties; risks relating to adverse weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting mining concessions); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to exploration activities; and other risk factors as detailed from time to time. The Company cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Due to the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward- looking information. The foregoing statements expressly qualify any forward-looking information contained herein.