25 February 2022
Cloudbreak Discovery Plc
(“Cloudbreak” or the “Company”)
Rizz Project Optioned to 1311516 BC Ltd.
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 Rizz Project (the “Project”) with 1311516 BC Ltd. (“BCCo”).
The Rizz Project is located approximately 90 kilometres south of Atlin, British Columbia (“British Columbia”) and forms part of the recently staked Northwest Portfolio (see press release dated 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.
Rizz Option Agreement Highlights
- To earn a 75% interest in the Project, BBCo will spend an aggregate of CAD $750,000 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 3,000,000 common shares to Cloudbreak which are due on effective date; and
- Make an aggregate of CAD $120,000 in cash payments, of which CAD $25,000 is due on the effective date, and with a further CAD $25,000 due on the earlier of either signing of a going public transaction or two months from the effective date.
Upon completion of the Option Agreement’s terms, 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, the remaining interest will automatically convert to a 2% net smelter royalty.
About the Rizz Project
The Rizz Project covers 5,415 hectares of mineral titles in northwestern BC, situated in the Boundary Ranges Metamorphic Suite and Sloko Group plutonic and volcanic rocks west of the Llewellyn fault. Mineralisation is documented in the Sloko-Hyder plutonic suite with several gossanous zones identified for immediate follow up. The known mineralisation is described as sulphide-rich felsite boulders and talus in one of the cirques on the property. Assay results from historic samples of this mineralisation include up to 27.6 grams per tonne (“g/t”) gold, 562.9 g/t silver, 8.25% lead and 15.9% zinc. Follow-up work will include exploring for the source of this strongly mineralised float material.
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.
Qualified Person
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.
