Jun. 1, 2017
Mr. Jeffrey Cocks reports
TRINITY TO ACQUIRE THE MATTAGAMI RIVER ZINC PROPERTY
Trinity Valley Energy Corp. has signed an option agreement to acquire a 100-per-cent interest in the Mattagami River zinc property, located in Agate and Tucker townships of the Porcupine mining division of Northeastern Ontario. The Mattagami property comprises 14 unpatented mining claims totalling 204 units having a combined area of approximately 3,300 hectares, located approximately 50 kilometres northeast of the town of Kapuskasing.
The company has identified the Mattagami River area as being highly prospective for the discovery of a world-class Broken Hill-type sedimentary exhalative (sedex) zinc-lead-silver-gold deposit. Other examples of sedex deposits are Cannington in Australia (operated by South 32) and Zinkgruvan in Sweden (operated by Lundin Mining).
Zinc mineralization was first discovered on the property by Canico (Inco) in 1966. Canico intersected zinc mineralization spread over a seven-kilometre horizon, returning assay results up to 13.7 metres with an average grade of 2.28 per cent zinc in hole BH32325.
The property lies north of Argo Gold Inc.’s Hurdman zinc-lead-silver-gold property. Historical drill hole intercepts on Hurdman of up to 7.3 metres with an average grade of 4.99 per cent zinc, 26.57 grams per tonne silver and 0.25 gram per tonne gold, including 2.2 metres grading 10.37 per cent zinc, 57.68 grams per tonne silver and 1.37 grams per tonne gold in hole ELO-06-12, have been reported (see Eloro Resources Ltd.’s news release dated May 2, 2006). The mineralization hosted on the Hurdman zinc-lead-silver-gold property is not necessarily indicative of the mineralization hosted on the Mattagami River zinc property.
Trinity can earn a 100-per-cent interest in the property under the terms of the option agreement by: (a) issuing 11.5 million common shares in the capital of Trinity and $25,000 cash payable within five business days upon receiving TSX Venture Exchange approval; and (b) issuing 1.5 million common shares in the capital of Trinity and $25,000 cash 12 months from the execution of the option agreement. The property is subject to an underlying 2-per-cent net smelter return royalty, of which 1.5 per cent may be purchased by the company for $1-million.
The closing of the transaction is subject to a number of conditions, including due diligence, the completion of a National Instrument 43-101 technical report on the property and obtaining all necessary regulatory approvals, including TSX-V approval.
The company also announces that, subject to regulatory approval, it is arranging a non-brokered private placement for aggregate gross proceeds of up to $750,000 through the issuance of 15 million units at a price of five cents per unit.
Each unit will consist of one common share and one warrant. Each warrant entitles the holder to acquire one common share of the company at a price of 10 cents per common share for a period of 24 months following the date of issuance.
The warrants shall contain an acceleration provision that, in the event the closing sale price of Walker’s shares on the TSX-V is 20 cents or greater for a period of 10 consecutive trading days, then the warrant holders will have 30 days to exercise their warrants; otherwise, the warrants will expire on the 31st day.
The company will also pay a finder’s fee in accordance with the policies of the TSX-V.
Proceeds of the private placement will be used for work on the company’s Mattagami River zinc property and for general working capital.
The private placement is subject to TSX-V acceptance.
The technical content of this news release has been reviewed and approved by Caitlin Jeffs, PGeo, an independent qualified person as defined by NI 43-101.
