VANCOUVER, March 27, 2019 /CNW/ - Sun Metals Corp. ("Sun Metals" or the "Company") (TSXV: SUNM) is pleased to announce financial results and operating highlights for the year ended December 31, 2018.
Highlights through and subsequent to December 31, 2018:
In addition to the events associated with the qualifying transaction completed in May 20181, highlights for the year and subsequent period to date are as follows:
- On February 4, 2019 the Company and Lorraine Copper Corp. ("Lorraine") announced they had entered into an arrangement agreement providing for the indirect merger of the companies (the "Arrangement Agreement"). Pursuant to the Arrangement Agreement, the Company will acquire all of the issued and outstanding common shares of Lorraine2. Following the expected completion of the merger in April 2019, Sun Metals will own 100% of the Stardust property ("Stardust" or the "Stardust Project") and any obligations of the Company under the Stardust Project option agreement will terminate.
- On December 20, 2018, the Company completed a private placement for gross proceeds of $5.2 million. In connection with the private placement, the Company issued 12,500,000 common shares on a flow-through basis (the "FT Shares"), at a price of $0.413 per FT Share.
- Teck Resources Limited ("Teck") invested in Sun Metals as the end acquirer of the common shares issued in connection with the December 2018 private placement. As a result, Teck holds 12,500,000 Shares of Sun Metals, which was equal to approximately 13.8% of Sun Metals' issued and outstanding Shares at the time of the acquisition.
- Successfully completed the 2018 drilling program at Stardust in September 2018. Drilling highlights include3:
- 100.00 metres grading 2.51% copper, 3.03 grams per tonne ("g/t") gold and 52.5 g/t silver for a 4.99% copper equivalent (CuEq) from diamond drill hole DDH18-SD-421; and
- 14.40 metres grading 1.32% copper, 1.03 g/t gold 22.9 g/t silver and 2.12% zinc for a 3.05% CuEq from diamond drill hole DDH18-SD-411
- In July 2018, consultation with Takla First Nation ("Takla") resulted in the signing of a cooperative exploration agreement (the "Exploration Agreement").
Outlook
Sun Metals expects to continue exploring Stardust with the intent to identify additional mineralization and increase shareholder value through discovery.
The Company's principal 2019 objective is to continue to advance exploration at Stardust in order to determine if the project hosts mineralization with the potential to be exploited economically. The Company plans to focus its efforts on additional diamond drilling to follow up on the results of diamond drill hole DDH18-SD-4214.
The Company has developed a budget of $5.4 million for the 2019 exploration program, which includes:
- Controlled, directional diamond drilling
- Ground based geophysics
- Structural Geology study (continuing)
- Mapping and prospecting.
The Company expects the 2019 field season at Stardust to begin in May 2019.
Selected Financial Data
The following selected financial data is derived from our Consolidated Financial Statements and related notes thereto for the periods indicated, as prepared in accordance with International Financial Reporting Standards. Details of these results are described in the Consolidated Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2018. These documents can be found on the Company's website (www.sunmetals.ca) or on SEDAR at www.sedar.com. All dollar figures are expressed in Canadian $.
For the year ended | For the period June | |||
Total Revenue | $ | - | $ | - |
Exploration and evaluation expenditures | $ | 3,323,555 | $ | 621,951 |
Net loss for the period attributable to shareholders | $ | 7,892,443 | $ | 953,583 |
Total comprehensive loss for the period | $ | 7,893,443 | $ | 953,583 |
Basic and Diluted Loss per Share | (0.12) | (0.03) | ||
As at December 31, 2018 | As at December 31, 2017 | |||
Total assets | $ | 7,814,202 | $ | 763,302 |
Current liabilities | $ | 2,687,417 | $ | 310,870 |
Non-current liabilities | $ | 131,678 | $ | - |
Cash dividends declared | $ | - | $ | - |
This press release should be read in conjunction with Sun Metals' Consolidated Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2018. These documents can be found on the Company's website (www.sunmetals.ca) or under the Company's profile on SEDAR at www.sedar.com. Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request.
Grant of Incentive Stock Options
The Company has granted incentive stock options to purchase up to 75,000 common shares in the capital of the Company until March 26, 2024 at an exercise price of $0.46 per common share to First Global Capital, a consultant who provides investor relations activities to the Company. The incentive stock options were granted in accordance with the Company's Stock Option Plan.
Amendment to Stardust Project Option Agreement
Under the Stardust Project option agreement (the "Option Agreement") with Lorraine, Sun Metals' option to acquire a 100% interest in the Stardust Project is exercisable by issuing 31,529,315 common shares of Sun Metals to Lorraine within 5 business days of March 31, 2019, and assuming all obligations under Lorraine's $50,000 reclamation bond currently posted with the Province of British Columbia.
On March 26, 2019 the Company entered into an amendment to the Option Agreement with Lorraine to extend the date on which Sun Metals' is to issue 31,529,315 common shares of Sun Metals to Lorraine to within 5 business days of June 1, 2019. All other terms and provisions of the Option Agreement remain the same and in full force and effect.
Qualified Persons and 43-101 Disclosure
Technical aspects of this news release have been reviewed and approved by Ian Neill P.Geo., Vice President Exploration of Sun Metals, who is the designated Qualified Person as defined by National Instrument 43-101 ("NI 43-101").
On Behalf of the Board of Directors of
SUN METALS CORP.
Steve Robertson
Chief Executive Officer
Neither 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.
About Sun Metals
Sun Metals is advancing its flagship, high-grade Stardust Project located in northcentral British Columbia, Canada. Stardust is a high-grade polymetallic Carbonate Replacement Deposit with a rich history. Pursuant to an Option Agreement between Sun Metals and Lorraine, a TSX Venture Exchange listed issuer, Sun Metals has an option to earn a 100% interest in the Stardust Project, located in central British Columbia.
The Canyon Creek copper-gold skarn zone at Stardust was the subject of a 2018, 43-101 compliant resource estimate published by the Company in January 2018. GeoSim Services Inc. provided the following estimate.
Stardust Project - Canyon Creek zone Mineral Resource Estimate(3):
Resource Category | Tonnes | Copper % | Zinc % | Gold g/t | Silver g/t | % Cu Eq |
Indicated | 985,000 | 1.34 | 0.62 | 1.59 | 36.8 | 2.92 |
Inferred | 1,985,000 | 1.24 | 0.14 | 1.72 | 30.5 | 2.65 |
(3) | The cut-off grade used in the resource estimate was 1.5% copper equivalent (Cu Eq). Metal price assumptions for the Cu Eq calculation were $3.00/lb Copper, $1.25/lb Zinc, $1,300/oz Gold and $18/oz Silver. Adjustment factors to account for differences in relative metallurgical recoveries of the constituents will depend upon completion of definitive metallurgical testing. The following equation was used to calculate copper equivalence: Cu Eq = Copper + (Zinc x 0.4167) + (Gold x 0.6319) + (Silver x 0.0087). A cut-off grade of 1.5% Cu Eq represents an in-situ metal value of approximately $100/tonne which is believed to represent a reasonable break-even cost for underground mining and processing. These are not mineral reserves and no work has been completed that demonstrates economic viability at the Project. |
Sun Metals believes B.C. is a reliable jurisdiction with excellent exposure to capital markets, a deep pool of exploration professionals, a wealth of supporting services, and exceptional infrastructure with direct access to Pacific markets.
A corporate presentation is available on Sun Metals' website at www.Sunmetals.ca.
Cautionary Note Regarding Forward-Looking Statements
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward‐looking statements". Forward‐looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
_____________________________ | |
1 | See press release dated May 2, 2018, available on the Company's website at www.sunmetals.ca or the Company's profile on SEDAR at www.sedar.com for further details. |
2 | See press release dated February 4, 2019, available on the Company's website at www.sunmetals.ca or the Company's profile on SEDAR at www.sedar.com for further details. |
3 | See press releases dated October 25, 2018, October 26, 2018, November 14, 2018 and December 19, 2018, available on the Company's website at www.sunmetals.ca or the Company's profile on SEDAR at www.sedar.com for further details of exploration results. |
4 | See press releases dated October 25, 2018 and October 26, 2018 available on the Company's website at www.sunmetals.ca or the Company's profile on SEDAR at www.sedar.com. |
SOURCE Sun Metals
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2019/27/c1134.html
