Update on BTU Dixie Halo Project - Kinross (Great Bear) Option

Rhea-AI Summary

BTU Metals Corp. announces updates on the exploration work completed on the Dixie Halo Project optioned to Kinross Gold Corporation. Kinross budgeted $85 million for 2024 for the Great Bear Project, adjacent to Dixie Halo. Deep drill hole results showed 389.57 g/t gold. GBR plans re-logging, sampling, and a drilling program. BTU received $300,000 from GBR and has a cash balance of $1.7M.

Positive

• BTU Metals Corp. provides updates on the Dixie Halo Project exploration work with Kinross Gold Corporation.
• Kinross allocated $85 million for the Great Bear Project in 2024, adjacent to the Dixie Halo Project.
• Deep drill hole results on the Great Bear Project revealed an intersection of 389.57 g/t gold.
• GBR plans re-logging, sampling, and a drilling program on the Dixie Halo Project.
• BTU received a $300,000 payment from GBR and has a cash balance of approximately $1.7 million.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / March 13, 2024 / BTU METALS CORP. ("BTU" or the "Company") (TSX-V:BTU)(OTCQB:BTUMF) announces updates on the exploration work completed on the Dixie Halo Project optioned to Kinross Gold Corporation (K-TSX). Kinross holds their interests in the area in a wholly owned subsidiary Great Bear Resources Ltd. ("GBR"). The Company's Dixie Halo project is a strategic, large land position adjacent to the world class Great Bear gold deposit southeast of the main Red Lake Gold camp area in northwestern Ontario.

The Dixie Halo Project is located adjacent to Kinross' Great Bear project (the "Great Bear Project") where Kinross has budgeted $85 million for 2024 for the continuing exploration and development of what they refer to as a world class gold deposit. Kinross continues to expand the envelope of the known gold mineralization down-dip and along strike and they have also announced plans to explore outside the known mineralization this year. Kinross recently announced deep drill hole results on the Great Bear Project that included an intersection of 389.57 g/t gold over a 4.4 m core length (Drill hole BR843AC1A).

Exploration Summary and Exploration Plan for 2024

A state-of-the-art airborne magnetic survey was completed in late 2023 using the same contractor (Geotech Ltd.) and the same airborne geophysical system as was used at the Great Bear project to provide a seamless, consistent high-quality airborne magnetic dataset to generate a solid base for updated geophysical interpretation and geological correlation across the Great Bear and Dixie Halo projects. Detailed interpretation of the data is ongoing.

GBR is continuing work under the Option Agreement including an ongoing program of re-logging and sampling of all of the BTU drill core using its ever-expanding experience and geological knowledge they have amassed in relation to the gold mineralization at the Great Bear project. GBR will use the sampling protocols used at Great Bear to provide a more comprehensive and complete understanding of the geology and alteration on the Dixie Halo project and to provide an expanded basis for the correlation of geological units and alteration throughout the area.

GBR plans to complete a geological review and sampling of various outcrop areas of interest on Dixie Halo including some of the areas worked in the past by BTU.

As the various review, relogging and sampling results are received and compiled by GBR, an initial core drilling program will be planned and GBR expects to be in a position to execute an initial drill program once it has secured an exploration permit from the Ontario government.

Under the option agreement GBR is required to spend not less than $2.7 million over the first three years and a total of $4.7 million to earn a 70% interest in the Dixie Halo property. The BTU-GBR option agreement closed on February 22, 2023.

BTU CEO Paul Wood commented; "We are very pleased to be working with Kinross and the Great Bear project team as they carry on the exploration of the Dixie Halo project. We are excited to be involved as they apply their expertise to continue the evaluation of the best places to explore on the Dixie Halo project. We look forward to them defining the best available gold targets and then drill testing those targets. The knowledge and expertise they bring to the further evaluation of the Dixie Halo project are invaluable, given they are the experts at defining the structure, alteration and gold mineralization in the area."

BTU has now received the $300,000 anniversary payment from GBR under the Purchase Agreement, bringing the Company's cash balance to approximately $1.7M.

February 2023 transactions with GBR

The Transactions entered into by BTU and GBR, in late February 2023 included: (i) a purchase agreement pursuant to which GBR acquired from BTU certain unpatented mining claims located in the Kenora District of Ontario, with BTU continuing to participate in those lands through a newly created royalty payable to BTU; (ii) an option agreement, which provides GBR with an option to earn a 70% interest in certain unpatented mining claims held by BTU located in the Kenora District of Ontario; and (iii) a subscription agreement pursuant to which GBR purchased 25,000,000 common shares of BTU at a purchase price of CAD$0.05 per common share.

Asset Acquisition

The Company entered into a purchase agreement with GBR, a wholly-owned subsidiary of Kinross, for the purchase (the "Acquisition") of certain unpatented mining claims located in the Kenora District of Ontario (the "Acquisition Properties"). The Acquisition Properties had a total area of 2,637 hectares and consisted of 39 Boundary Cell Mining Claims and 76 Single Cell Mining Claims located to the south of the Great Bear Project, as well as 2 Multi-cell Mining Claims located to the north of the Great Bear Project. BTU holds Net Smelter Royalties from 1.5% to 2.5% on these properties as well as underlying royalty buy back rights.

The consideration payable by GBR pursuant to the Acquisition was: (i) CAD$1,550,000 in cash, with CAD$1,250,000 due immediately on closing and an additional CAD$300,000 due on the one-year anniversary of the closing date (received February 2024), and (ii) GBR issued to the Company a variable 1.5% - 2.5% NSR royalty on the Acquisition Properties (the "Royalty"), such that each Acquisition Property will have a cumulative total 4% NSR royalty attached to it upon the grant of the Royalty, once combined with the existing royalties payable over and in respect of the Acquisition Property. BTU will maintain any existing third-party royalty buy-back rights in respect of the Acquisition Properties.

Figure 1: Map showing the Acquisition Properties, Optioned Properties ase well as Kinross' properties and the BTU/GoldON Pakwash properties. The Great Bear Project mineral resource is located on the northern Kinross property on this map.

The Acquisition was an arm's length transaction pursuant to the policies of the TSX-V.

About the Option Agreement

The Company entered into a property option agreement (the "Option Agreement") with GBR, pursuant to which GBR has been granted the right to acquire an undivided 70% interest in and to 757 mining claims (12 Boundary Cell Mining Claims, 3 Multi-cell Mining Claims, and 742 Single Cell Mining Claims) covering approximately 16,410 hectares of land, located in the Kenora District of Ontario (the "Optioned Properties").

Pursuant to the terms of the Option Agreement, GBR has the option to acquire the 70% interest in the Optioned Properties in consideration for completing cash payments or exploration expenditures on the Optioned Properties, being: (i) CAD$2,700,000 in expenditures, to be incurred by GBR on or before the date that is 36 months from the effective date of the Option Agreement, and (ii) a further CAD$2,000,000 of expenditures, to be incurred by GBR in its sole discretion within 48 months from the effective date of the Option Agreement.

In connection with a private placement in February 2023, GBR acquired 25,000,000 Common Shares. Pursuant to the private placement GBR held an aggregate of 25,000,000 Common Shares representing approximately 17.5% of the current issued and outstanding common shares on a non-diluted basis of the Company.

About BTU

BTU Metals Corp. is a junior mining exploration company focused on the Dixie Halo Project located in Red Lake, Ontario immediately adjacent to the Great Bear Project. The Company has no debt, no property obligations and maintains a cash balance of approximately $1.7M.

ON BEHALF OF THE BOARD
"Paul Wood"
Paul Wood, CEO, Director
pwood@btumetals.com

BTU Metals Corp.
Telephone: 1-604-683-3995
Toll Free: 1-888-945-4770

Cautionary Statement

Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about future plans and objectives of the Company are forward-looking information. Other forward-looking information includes but is not limited to information concerning: the intentions, plans and future actions of the Company.

Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.

This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: risks relating to the global economic climate; dilution; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. The Company has also assumed that no significant events occur outside of the normal course of business. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.

SOURCE: BTU Metals Corp.

View the original press release on accesswire.com

FAQ

What updates did BTU Metals Corp. announce regarding the exploration work on the Dixie Halo Project?

BTU Metals Corp. provided updates on the exploration work completed on the Dixie Halo Project, which was optioned to Kinross Gold Corporation.

How much did Kinross budget for the Great Bear Project in 2024?

Kinross allocated $85 million for the continuing exploration and development of the Great Bear Project in 2024.

What was the gold intersection in the deep drill hole results on the Great Bear Project?

The deep drill hole results on the Great Bear Project revealed an intersection of 389.57 g/t gold over a 4.4 m core length.

What are GBR's plans for the Dixie Halo Project?

GBR plans to conduct re-logging, sampling, and a drilling program on the Dixie Halo Project.

How much did BTU receive from GBR and what is their current cash balance?

BTU received a $300,000 payment from GBR, bringing their cash balance to approximately $1.7 million.