Cloudbreak Discovery Plc (“Cloudbreak”) (LSE: CDL), a natural resource project generator, is pleased to announce that it has entered into an Option Agreement (the “Option”) on the Icefall Project (the “Project”) with 1311516 BC Ltd. (“BCCo”) with the effective date being 7 March 2022 (“Effective Date”).
The Icefall Project is located approximately 90 kilometres south of Atlin, British Columbia and forms part of the Northwest Portfolio originally announced on 27 September 2021. Several surface showings have been observed within the same geologic setting and structural corridor as the New Polaris and Tulsequah Chief projects which are targeting polymetallic mineralisation.
Icefall Option Agreement Highlights
- To earn a 75% interest in the Project, BCCo will spend a total of CAD $700,000 over a three-year period in exploration expenditures on the property, with at least CAD $50,000 being spent prior to the first anniversary of the Effective Date;
- Issue of 2,000,000 common shares in BCCo to Cloudbreak’s subsidiary company Cloudbreak Discovery (Canada) Limited (“CDL”) immediately; and
- Make an aggregate of CAD $120,000 in cash payments to CDL of which CAD $25,000 is payable immediately, CAD $25,000 is due on the earlier of BCCo entering into a definitive agreement for admission or trading of its shares on an established Canadian or U.S. securities exchange or two months from the Effective Date, CAD $25,000 is due on or before the first anniversary of the Effective Date and CAD $50,000 is due on or before the second anniversary of the Effective Date.
Upon completion of the Option Agreement’s terms both BCCo and Cloudbreak (the “Parties”) will enter into a Joint Venture which will see each party responsible for its pro-rata share of expenditures on the Project. Should either of the Parties elect not to fund its pro-rata share of expenditures, its interest will be proportionally diluted down. If either of the Parties are diluted under a 10% ownership interest in the Project, its remaining interest will automatically convert in to a 2% net smelter royalty.
Kyler Hardy, CEO of Cloudbreak Discovery, commented, “The Northwest Portfolio represents a great opportunity in an under explored region of British Columbia. The region has historically had meaningful production; however, the area has not been subject to modern exploration techniques. We look forward to working closely with our partner to advance the Icefall project with the latest technology, in order to build a clearer geologic picture.”
About the Icefall Project
The Icefall Project is underlain by Stuhini and Labarge Group volcanic and sedimentary rocks and is continuous along strike from Brixton Metals Corp’s Thorn Gold-Copper-Silver Project. Granitic intrusions have been mapped on the northern and southern bounds of the claim block, which covers 8,704 hectares. The property is bounded between the Llewellyn fault to the west and King Salmon fault to the east, with several north-trending structures noted on the property. Several showings which require immediate follow-up, includes sample results of up to 35.5 grams per tonne silver and 0.5% copper.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
Mr. Rory Kutluoglu P. Geo., Chief Operation Officer of the Company, is the Qualified Person (“QP”) under NI 43-101 for the technical information in this news release, has verified the data disclosed and approves the technical contents contained in this news release.