Pacific Bay Minerals Ltd Signs Letter of Intent to Acquire 14,596 Hectare Gold Property in Alagoas State, Brazil
Pacific Bay Minerals (TSXV: PBM) has signed a non-binding Letter of Intent (LOI) with Appian Capital Advisory LLP to acquire 100% of the Pereira-Velho gold prospect in Alagoas State, Brazil. The project encompasses 11 mineral claims totaling 14,596 hectares.
The acquisition terms include CAD $710,000 in cash payments and CAD $700,000 worth of Common Shares or cash, to be paid in two tranches over one year. Appian will retain a 1.5% net smelter royalty, which can be purchased back for USD$3.5 million.
The project features mineralization at surface, hosted in fractured quartzites with low clay content, suggesting potential for a low-stripping ratio deposit. The area has access to infrastructure and an experienced local workforce. The transaction is subject to TSX Venture Exchange approval and completion of due diligence by January 31, 2025.
Pacific Bay Minerals (TSXV: PBM) ha firmato una Lettera di Intenti (LOI) non vincolante con Appian Capital Advisory LLP per acquisire il 100% del giacimento d'oro Pereira-Velho nello Stato di Alagoas, Brasile. Il progetto comprende 11 concessioni minerarie per un totale di 14.596 ettari.
I termini dell'acquisizione includono CAD $710.000 in pagamenti in contante e CAD $700.000 in Azioni Comuni o in contante, da pagare in due rate nell'arco di un anno. Appian manterrà una royalty netta di fusione dell'1,5%, che potrà essere riacquistata per USD $3,5 milioni.
Il progetto presenta mineralizzazione in superficie, ospitata in quarziti fratturate con basso contenuto di argilla, suggerendo un potenziale per un deposito a basso rapporto di sfruttamento. L'area ha accesso a infrastrutture e a una forza lavoro locale esperta. La transazione è soggetta all'approvazione della TSX Venture Exchange e al completamento della due diligence entro il 31 gennaio 2025.
Pacific Bay Minerals (TSXV: PBM) ha firmado una Carta de Intenciones (LOI) no vinculante con Appian Capital Advisory LLP para adquirir el 100% del depósito de oro Pereira-Velho en el estado de Alagoas, Brasil. El proyecto comprende 11 reclamaciones minerales que totalizan 14,596 hectáreas.
Los términos de la adquisición incluyen CAD $710,000 en pagos en efectivo y CAD $700,000 en Acciones Comunes o en efectivo, que se pagarán en dos tramos a lo largo de un año. Appian retendrá una regalía neta de fundición del 1.5%, que podrá ser recomprada por USD $3.5 millones.
El proyecto presenta mineralización en superficie, contenida en cuarcitas fracturadas con bajo contenido de arcilla, sugiriendo un potencial para un depósito de baja relación de desmonte. El área tiene acceso a infraestructura y a una mano de obra local experta. La transacción está sujeta a la aprobación de la TSX Venture Exchange y la finalización de la debida diligencia antes del 31 de enero de 2025.
퍼시픽 베이 미네럴스 (TSXV: PBM)는 브라질 아라고아스 주의 페레이라-벨류 금 광산을 100% 인수하기 위해 Appian Capital Advisory LLP와 비구속적인 의향서 (LOI)를 체결했습니다. 이 프로젝트는 총 14,596 헥타르에 해당하는 11개의 광물 청구권을 포함합니다.
인수 조건에는 CAD $710,000의 현금 지급 및 CAD $700,000의 보통주 또는 현금이 포함되어 있으며, 이는 1년 동안 두 번의 분할 지급으로 이루어집니다. Appian은 1.5%의 순광산 로열티를 보유하며, 이는 USD $3.5 백만에 다시 매입할 수 있습니다.
이 프로젝트는 낮은 점토 함량의 균열된 석영암에 호스트된 표면에서의 광물화를 특징으로 하며, 이는 낮은 박리 비율의 매장 가능성을 제안합니다. 이 지역은 인프라와 경험이 풍부한 지역 노동력에 접근할 수 있습니다. 거래는 TSX 벤처 거래소의 승인 및 2025년 1월 31일까지의 실사를 완료하는 조건입니다.
Pacific Bay Minerals (TSXV: PBM) a signé une Lettre d'Intention (LOI) non contraignante avec Appian Capital Advisory LLP pour acquérir 100 % de la perspective d'or Pereira-Velho dans l'État d'Alagoas, au Brésil. Le projet comprend 11 titres miniers totalisant 14 596 hectares.
Les conditions de l'acquisition incluent CAD $710.000 en paiements en espèces et CAD $700.000 en Actions Ordinaires ou en espèces, à verser en deux tranches sur une durée d'un an. Appian conservera une redevance nette de fonderie de 1,5 %, qui pourra être rachetée pour 3,5 millions USD.
Le projet présente une minéralisation en surface, hébergée dans des quartzites fracturées à faible teneur en argile, suggérant le potentiel d'un dépôt à faible rapport de décapage. La zone a accès à des infrastructures et à une main-d'œuvre locale expérimentée. La transaction est soumise à l'approbation de la TSX Venture Exchange et à l'achèvement de la diligence raisonnable d'ici le 31 janvier 2025.
Pacific Bay Minerals (TSXV: PBM) hat einen unverbindlichen Letter of Intent (LOI) mit Appian Capital Advisory LLP unterzeichnet, um 100% des Pereira-Velho Goldvorkommens im Bundesstaat Alagoas, Brasilien, zu erwerben. Das Projekt umfasst 11 Mineralansprüche mit einer Gesamtfläche von 14.596 Hektar.
Die Bedingungen für die Übernahme beinhalten CAD $710.000 in Barzahlungen und CAD $700.000 in Stammaktien oder Barzahlung, die in zwei Tranchen über ein Jahr hinweg zu zahlen sind. Appian wird eine 1,5%ige Nettoverwertungsgebühr behalten, die für USD $3,5 Millionen zurückgekauft werden kann.
Das Projekt weist Mineralisierungen an der Oberfläche auf, die in frakturierten Quarzen mit niedrigem Tonanteil gehostet sind, was auf ein Potenzial für ein Abbauverhältnis mit niedriger Abraumquote hinweist. Die Region hat Zugang zu Infrastrukturen und einer erfahrenen lokalen Arbeitskraft. Die Transaktion steht unter dem Vorbehalt der Genehmigung durch die TSX Venture Exchange und des Abschlusses einer Due Diligence bis zum 31. Januar 2025.
- Strategic acquisition of 14,596 hectares of gold property in a mining-friendly jurisdiction
- Surface mineralization with potential low-stripping ratio, suggesting favorable mining economics
- Project has existing infrastructure and experienced local workforce
- Structured payment terms spread over one year, reducing immediate financial burden
- Significant cash commitment of CAD $710,000 plus additional CAD $700,000 in cash or shares required
- Historical exploration data not verified by the company or qualified person
- No assured economic-grade mineralization or reserves confirmed
- Trading halt imposed pending documentation review
Vancouver, British Columbia--(Newsfile Corp. - January 7, 2025) - Pacific Bay Minerals Ltd (TSXV: PBM) ("Pacific Bay" or the "Company"), is pleased to announce the signing of a non-binding Letter of Intent ("LOI") with Appian Capital Advisory LLP ("Appian") to acquire
The Project
The Pereira-Velho Project, located in inland Alagoas State, Brazil, is a jurisdiction where copper ore and concentrates represent the state's second-largest export*. The area features access to significant infrastructure, an experienced local workforce that supports mining development, and is road accessible.
Regional geology features Paleo-Proterozoic rocks from the Borborema Suite within the claims and local units comprised of steeply-dipping quartzite packages striking up to 10 kilometers long on a SE-NW trend. Mineralization consists of free gold hosted in hydrothermal quartz veins associated with a shear zone positioned between gneisses and a banded iron formation at the foot and hanging walls. Sulphide content, mostly pyrite, is typically less than
Mineralization comes to surface, hosted in fractured quartzites with negligible clay content, making for an excellent potential deposit with a low-stripping ratio.
"I am pleased to present the agreement for the potential outright purchase of this exceptional property. My prior experience with the project underscored its outstanding economic potential and scale, making this acquisition a pivotal step forward. With this purchase, we are strategically positioned to advance the project and unlock significant value for our stakeholders," said Elton Pereira, VP Exploration. "I view Alagoas, Brazil, as an excellent mining jurisdiction, and I am eager to revisit and further explore this promising project."
The Acquisition
The LOI, signed January 6, 2025, outlines how Pacific Bay and Appian will work exclusively towards the execution of a binding, definitive agreement in respect of the acquisition in an arm's length deal. It also sets out a strategy to derisk the Acquisition for both parties, with provisions granting both Pacific Bay and Appian certain return and reversion rights (see below for further details).
The LOI gives the parties until January 31, 2025 to complete a due diligence study, determine the final structure of the Acquisition (based on advice from legal, tax and professional advisors and in accordance with applicable corporate, tax and securities laws) and to enter into a binding, definitive agreement.
It is proposed that the following consideration be paid by Pacific Bay in connection with the Acquisition:
- CAD
$710,000 in cash payments and CAD$700,000 worth of Common Shares or cash, at the Company's discretion, to be issued in two tranches, as follows:
○ Upon signing a definitive agreement and obtaining necessary approvals including TSX Venture Exchange approval: (i) CAD
○ Upon the 1-year anniversary of the date of the definitive agreement: (i) CAD
Appian will retain a
1.5% net smelter royalty on production from the Project that can be purchased back by Pacific Bay at any time for the total aggregate amount of USD$3.5 million .Appian shall be subject to an ownership restriction of
19.9% and have agreed that, if at any time an issuance of Common Shares pursuant to the Option Agreement would result in Appian holding more than19.9% of the issued and outstanding Common Shares, Pacific Bay shall reduce the number of Common Shares issuable to Appian and substitute cash consideration for the unissued Common Shares.There will be no Change of Control nor Change of Management. The transaction will be treated as a Fundamental Acquisition pursuant to TSXV policy 5.3.
Trading will remain halted pending receipt and review of acceptable documentation pursuant to Section 5.6 (d) of TSXV Policy 5.3 regarding Fundamental Acquisitions.
No Finder's Fees will be paid by Pacific Bay.
The Acquisition will be subject to TSX Venture Exchange approval.
Notes to investors
Historical exploration data and analytical results featured in this announcement were taken from assessment reports filed with the department of Mines Brazil. Neither Pacific Bay nor a qualified person has verified the historical sampling, analytical, and test data contained in this news release. Historical work and results include a gold-in-soil anomaly across some of the 11 claims totaling 14,596 hectares, drill testing, and an initial phase of metallurgical testing. The Company is providing these historical data for informational purposes only and gives no assurance as to their reliability and relevance to the Company's potential exploration program on the Project. The Company has not completed any quality assurance program or applied quality control measures to the historical data.
Investors are cautioned that there can be no assurance that the parties to the LOI will come to agreement and execute a binding, definitive agreement or that the Acquisition will be completed as proposed, or at all. In addition, the Company can give no assurances at this time that the Project will contain economic-grade mineralization and reserves that would be required for any profitable mining or will fulfill the Company's business development goals described herein. Trading in the securities of the Company should be considered highly speculative.
The Company will issue additional press releases related to execution of definitive documentation in respect of the Acquisition and other material information as it becomes available.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Mr. David Bridge, P.Geo., a consultant of the Company, who is a "Qualified Person" as defined in NI 43-101.
For more Information please contact:
Reagan Glazier, CEO, President and Director
E-mail: reagan@pacificbayminerals.com
Telephone:+1 403-815-6663
About Pacific Bay Minerals Ltd.
Pacific Bay, a Canadian-based junior mineral exploration company, currently has a portfolio of properties in British Columbia including the Haskins Reed and Sphinx Mountain Rare-Earth Element Project. Focus will be directed to actively exploring and developing all three projects.
About Appian Capital Advisory LLP
Appian Capital Advisory LLP is the investment advisor to the Appian Natural Resources Funds, which are long-term, value-focused funds that invest in metals, mining, and adjacent industries.
Appian is a leading investment advisor with global experience across South America, North America, Australia and Africa. It has a successful track record of supporting companies in metals, mining, and adjacent industries to achieve their development targets, with a global operating portfolio overseeing nearly 5,000 employees.
Appian has a global team of 85 experienced professionals with presences in London, New York, Hong Kong, Toronto, Vancouver, Lima, Belo Horizonte, Montreal, Dubai, Johannesburg and Perth.
For more information, please visit www.appiancapitaladvisory.com, or find us on LinkedIn, Instagram or Twitter/X.
Forward-Looking Statements
This News Release contains forward-looking statements, which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "will", "may", "should", "expects", "plans", "intends", or "anticipates" or the negative of these terms or other comparable terminology. All statements included herein, other than statements of historical fact, are forward-looking statements, including but not limited to the Company's expectations regarding the terms of the Acquisition, the closing date of the Acquisition, expected benefits of the Acquisition, mineralization of the Project and other matters. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith, and reflect the Company's current judgment regarding the direction of its business, actual results may vary, sometimes materially, from any estimates, predictions, projections, assumptions, or other future performance suggestions herein. Except as required by applicable law, the Company does not intend to update any forward-looking statements to conform these statements to actual results.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/236277
FAQ
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