VOLATUS CAPITAL CORP. CLOSES PURCHASE OF MAGMETAL TECH PTY LTD.; OWNER OF 20% INTEREST IN LEIGH CREEK MAGNESITE PROJECT
August 13, 2020: Vancouver, BC Canada - Volatus Capital Corp. (CSE: VC) (the “Company&rdquo has closed the acquisition of MagMetal Tech Pty Ltd., which owns a 20% interest in the Leigh Creek Magnesite Pty. Ltd.
Key Points:
• Globally-significant magnesite resource
• Top-tier mining jurisdiction
• Excellent logistics
• Magnesium a key metal in the green economy
The Leigh Creek Magnesite Project is located in Leigh Creek Township, approximately 550 Km north of Adelaide in South Australia. Consisting of 2 exploration licences, the Leigh Creek Magnesite Project is considered to be the world’s largest cryptocrystalline (small-grained) magnesite deposit, capable of making CCM (caustic calcined magnesia), DBM (dead burned magnesia) and EFM (electro fused magnesia) magnesia products, and magnesium metal. The project has nearby spare kiln and port capacity, with multiple toll processing opportunities.
The Leigh Creek historical JORC resource estimate consists of 16 million tonnes measured, 113.5 million tonnes indicated and 106 million tonnes inferred (see table included herein). The historical JORC resource estimate was completed for Archer Exploration Ltd. in April 12, 2016. The company's qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or mineral reserve, and the company is not treating the historical estimate as current mineral resources or mineral reserves.
The included table is derived from the April 12, 2016, Archer Exploration JORC resource.
Area Measured
(Mt) Indicated
(Mt) Inferred
(Mt) Total
(Mt) MgO (%)
Mount Hutton Central 12.0 5.5 0.0 17.5 40.1
Mount Hutton South 0.0 72.0 53.0 125 42.9
Mount Playfair 0.0 21.0 23.0 44 42.5
Pug Hill 0.0 10.0 10.0 20 42.7
Termination Hill 4.0 5.0 20.0 29 42.8
Total 16.0 113.5 106.0 235.5
The JORC resource categories used are comparable to the CIM 2014 mineral resource categories recognized under National Instrument 43-101. The parameters used to prepare the historical estimate include creating a DTM for the top and bottom of each bed in the magnesite package. The block size chosen measured 10 metres north by 0.5 m east and one m vertically. This block size allowed for an estimation of steeply dipping, thin, tabular bodies and also considered the estimated minimum magnesite bed mining width of 0.5 m.
A qualified person has yet to determine what work would be required to upgrade or verify this historical estimate.
The company's investment in magnesium metal is in alignment with its vision of the growth of the green economy. The unique properties of magnesium to create a high-strength, low-weight metal and associated alloys for use in electric vehicles allows for the reduction of vehicle weight while driving down battery size and costs.
President and chief executive officer Michael Collins comments: "We are very excited to enter the magnesium development space. We see magnesium as one of the key metals in the electric vehicle economy. Volatus expects magnesium and gold to be the two bright lights of the mining sector in 2020, and we are in both of them."
Purchase Terms
Per the Company’s June 24 News Release, the terms include:
• 5% of the Company’s issued and outstanding shares, using the volume weighted average price (VWAP) calculated by the 5 trading days prior to and including the announcement date (June 24) and the 5 trading days immediately after announcement date or 1,582,803 shares
• CAD$2,250,000 million in Company shares, using the volume weighted average price (VWAP) calculated by the 5 trading days prior to and including the completion date (July 29) and the 5 trading days immediately after the completion date, or 5,572,094 shares
For a total of 7,154,897 shares in Volatus shares.
• $500,000 in payments; $200,000 within 90 days and $300,000 within 180 days.
Technical disclosure in this news release has been reviewed and approved by Michael Collins P. Geo., President and CEO, and shareholder of Volatus Capital Corp., a Qualified Person as defined by National Instrument 43-101.
About Volatus Capital Corp.
The Company is focused on exploration and development of resources in gold and copper in the Toodoggone District Norther British Columbia, and metals in the green economy that have strong demand profiles such as magnesium metal.
We seek Safe Harbor.
ON BEHALF OF THE BOARD
“Michael Collins”
Michael Collins, President and CEO
For additional information, contact Volatus at 604-681-3170
Forward-looking information
Certain statements in this news release constitute “forward-looking” statements. These statements relate to future events or the Company’s future performance. All such statements involve substantial known and unknown risks, uncertainties and other factors which may cause the actual results to vary from those expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved. Actual results could differ materially from those anticipated due to a number of factors and risks. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Company 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 under applicable securities regulations.
AXE Price at posting:
46.0¢ Sentiment: Buy Disclosure: Held
has closed the acquisition of MagMetal Tech Pty Ltd., which owns a 20% interest in the Leigh Creek Magnesite Pty. Ltd.
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