Plans Name Change to New Energy Metals Corp.
Vancouver, British Columbia–(Newsfile Corp. – March 1, 2018) – Darien Resource Development Corp. (TSXV: DRR) (“Darien” or the “Company“) announces that it has entered into an agreement (the “Agreement“) to acquire a 100% interest in the Cristal project (the “Project“) located in northern Chile. The Project, situated in a region with excellent access and infrastructure, and in a geologic setting that is noted for the occurrence of world class copper deposits, is considered prospective for the potential discovery of a buried porphyry copper deposit.
Darien’s President and Chief Executive Officer, Grant Ewing, said “The Cristal project is highly prospective for the discovery of a buried porphyry copper deposit in a region and geologic setting well known for hosting some of the world’s most prolific copper mines. The Company is now well capitalized to initiate exploration of the Cristal project, and continue to pursue other attractive opportunities in strategic commodities. Darien intends to further focus on opportunities in Chile.”
The Company is also pleased to announce that it plans to change its name to “New Energy Metals Corp.”. The Company has reserved the new name with the British Columbia corporate registry and anticipates completing the name change prior to the end of March 2018.
Cristal Project Highlights
The West Fissure and related structures that host many significant porphyry copper deposits in Chile trend trough the Project area, and northwest of the Project area, the Incapuquio fault system in Peru hosts additional significant porphyry copper deposits similar to those of northern Chile. These two important fault systems are projected to intersect near the Project area and provide a geologic environment favorable for the occurrence of buried porphyry deposits.
Early exploration work in the Project area was conducted by various exploration companies in the 1990’s, with the first significant work on the Project conducted by BHP Billiton (“BHP“) under an option agreement in 2012. BHP conducted airborne magnetics, gravity, and EM studies, and limited drilling, and terminated the option in 2014. In the BHP summary report, it was stated that an enhancement of the magnetics data had identified a 2-3km diameter circular doughnut feature with a weak magnetic high core surrounded by a magnetic low, accepted by geologists and geophysicists as typical of buried porphyry copper deposits. This significant anomaly was not tested and occurs near where the West Fissure undergoes an abrupt change in direction from N-S to N45W at the intersection with the NE-SW regional structure. No exploration work has been conducted on the property since, however, the Project area is now surrounded by large land positions held by several senior copper producers.
The Project comprises 9 square kilometers of concessions on Chilean public land held by the ultimate vendor near Arica, Chile.
The Company’s initial exploration focus will be on the area where the large geophysical anomaly (aeromagnetic low and gravity high) was identified by the previous exploration activities. The anomaly, which measures several kilometers across, shows a weak magnetic high surrounded by a magnetic low, and could potentially represent a buried porphyry copper deposit. A coincident northwest trending gravity high could represent a topographic high within a potential porphyry copper system.
The Company’s proposed exploration program for the Project will involve a drill program of 4-6 holes to test the principal target, for a total budget of US$1,000,000 – $1,500,000. The all-in cost of approximately US$250 per meter is anticipated to cover permitting and all ancillary costs for the program.
Summary of Agreement
The Company entered into the Agreement with Artemis Mining SpA (“Artemis“), a private Chilean company that had previously entered into an option agreement (the “Underlying Option Agreement“) with the current owner of the Project, Patrick Burns. Pursuant to the terms of the Agreement, the Company agreed to assume the Underlying Option Agreement and to reimburse Artemis for expenses and property payments previously incurred totaling US$150,000. The Company is in the process of establishing a Chilean subsidiary which would enter into an agreement to formally assume the Underlying Option Agreement in accordance with Chilean law.
To earn a 100% interest in the Project pursuant to the terms of the Underlying Option Agreement, the Company will be required to make the following payments:
|August 4, 2018||US$70,000|
|August 4, 2019||US$200,000|
|August 4, 2020||US$500,000|
|August 4, 2021||US$700,000|
|August 4, 2022||US$3,000,000|
The vendor under the Underlying Option Agreement retains a 3% NSR royalty, of which two-thirds can be bought back (leaving a 1% NSR royalty) by paying US$2,000,000 for each percentage point of the NSR royalty bought back.
The Agreement is subject to the approval of the TSX Venture Exchange. Given the size of the drill program the Company plans to initiate at the Project, the Company anticipates that the transactions contemplated by the Agreement will constitute a “Fundamental Acquisition” for purposes of the TSXV’s listing rules.
Dr. Thomas A. Henricksen, an independent consultant geologist, is a qualified person as defined by National Instrument 43-101. Mr. Henricksen and has reviewed the scientific and technical information that forms the basis of this news release and has approved the disclosure herein. Mr. Henricksen is independent of the Company.
On behalf of Darien Resource Development Corp.
Grant Ewing, President & CEO
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.
Cautionary Note Regarding Forward-Looking Statements
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain “forward-looking statements”. Other than statements of historical fact, all statements included in this release, including, without limitation, statements regarding future plans and objectives of Darien Resource Development Corp., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Darien’s expectations are the risks detailed herein and from time to time in the filings made by Darien Resource Development Corp. with securities regulators. Those filings can be found on the Internet at http://www.sedar.com.