Grizzly to Acquire the Motherlode Crown Grants in the Greenwood District Precious and Battery Metals Project, BC
Grizzly Discoveries has entered into a purchase agreement with First Majestic Silver to acquire the Motherlode Crown Grants in the Greenwood District, British Columbia. The Crown Grants include 13 historical mines, with the Motherlode Mine being notable for producing significant quantities of copper, gold, and silver in the early to mid-1900s. This acquisition is expected to bolster Grizzly’s exploration activities for precious and battery metals in its extensive land holdings. As part of the agreement, Grizzly will issue 250,000 common shares to First Majestic and grant a 1% Net Smelter Return (NSR) Royalty on the Crown Grants, with an option to purchase the NSR for $250,000.
- Acquisition of Motherlode Crown Grants, rich in historical mineral production.
- Historical mines produced 76,975,111 lbs of copper, 173,319 oz of gold, 688,203 oz of silver.
- Enhanced exploration prospects for precious and battery metals in a 170,000+ acre land holding.
- Agreement includes an option to purchase the NSR Royalty for $250,000, potentially reducing long-term costs.
- Grizzly will incur additional costs related to the transfer of the Crown Grants.
- Issuance of 250,000 common shares to First Majestic may lead to shareholder dilution.
- The transaction is subject to acceptance by the TSX Venture Exchange, introducing potential regulatory delays.
Edmonton, Alberta--(Newsfile Corp. - June 17, 2024) - Grizzly Discoveries Inc. (TSXV: GZD) (FSE: G6H) (OTCQB: GZDIF) ("Grizzly" or the "Company") is pleased to announce that it has entered into a purchase agreement (the "Purchase Agreement") with First Majestic Silver Corp. ("First Majestic") to acquire the Motherlode Crown Grants, host to the historical Motherlode, Sunset, Sunrise and Greyhound mines that at various times during the early and middle 1900s produced copper (Cu), gold (Au) and silver (Ag) from both open pit and underground workings (Figures 1 & 2).
The Motherlode Crown Grants comprise 13 Crown Grants that all retain the subsurface mineral rights and date back to the late 1800s early 1900s when they were granted. The Crown Grants cover a number of historical mines, including the Motherlode Mine that produced 76,975,111 pounds of Cu, 173,319 ounces of Au and 688,203 ounces of Ag during the active periods of mining from 1900 to 1920 and then from 1957 to 1962. The Motherlode skarn mineralization is developed in the Triassic Brooklyn Formation sediments (BC Minfile 082ESE034). The Motherlode mine is road accessible and is approximately 2.5 km northwest of the town of Greenwood in British Columbia (Figure 1).
Brian Testo, President and CEO of Grizzly Discoveries, stated, "We are excited to have reached an agreement to acquire the historical Motherlode Mine. We look forward to an aggressive year drilling at the Motherlode Mine and other high-grade gold - silver - copper showings and historical mines in 2024 along with additional exploration for significant battery metals in our current 170,000+ acre land holdings in the Greenwood District."
Figure 1: Land position and targets of interest for future exploration, Greenwood Project.
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Figure 2: Motherlode Crown Grants, Greenwood Project.
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Summary of the terms of the Purchase Agreement:
- The Company will cover all costs related to the transfer of the Crown Grants from First Majestic to the Company.
- As consideration, Grizzly will issue First Majestic 250,000 common shares of the Company (the "Consideration Shares") upon closing of the transaction.
- At closing, the Company will grant a
1% Net Smelter Return (NSR) Royalty on the Crown Grants to First Majestic and retains an option to purchase the NSR Royalty for$250,000 at any time.
The issuance of the Consideration Shares is subject to the acceptance of the TSX Venture Exchange.
The technical content of this news release and the Company's technical disclosure has been reviewed and approved by Michael B. Dufresne, M. Sc., P. Geol., P.Geo., who is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
ABOUT GRIZZLY DISCOVERIES INC.
Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange focused on developing its approximately 72,700 ha (approximately 180,000 acres) of precious and base metals properties in southeastern British Columbia. Grizzly is run by a highly experienced junior resource sector management team, who have a track record of advancing exploration projects from early exploration stage through to feasibility stage.
On behalf of the Board,
GRIZZLY DISCOVERIES INC.
Brian Testo, CEO, President
Suite 363-9768 170 Street NW
Edmonton, Alberta T5T 5L4
For further information, please visit our website at www.grizzlydiscoveries.com or contact:
Nancy Massicotte
Corporate Development
Tel: 604-507-3377
Email: nancy@grizzlydiscoveries.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution concerning forward-looking information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available under the Company's SEDAR+ profile at www.sedarplus.ca. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213192
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