Amarc acquires new option to purchase 100% of Galore Property surrounding IKE
VANCOUVER, July 19, 2016
VANCOUVER, July 19, 2016 /CNW/ - Amarc Resources Ltd. ("Amarc" or the "Company") (TSX-V: AHR; OTCBB:AXREF) announces that new option agreements have been negotiated with respect to the Galore Property with Galore Resources Inc. ("Galore") and Underlying Owners. Under the new agreements Amarc can acquire a 100% interest in the Galore Property, clear of any royalties, by completing staged cash payments of $550,000 to Galore and $100,000 to the Underlying Owners by January 2018. The Galore Property consists of extensive mineral claims surrounding the new IKE porphyry copper-molybdenum-silver discovery, which host additional important-scale copper-gold and copper-molybdenum porphyry deposit targets.
Original Galore Property Agreements
In July 2014, Amarc entered into an option and joint venture agreement (the "Galore Option Agreement") with Galore whereby the Company acquired the right to earn an initial 51% ownership interest in the Galore Property by incurring $3 million in exploration expenditures within five years and making staged cash payments of $450,000. Further Amarc may acquire an additional 19% ownership interest (for a total 70% ownership interest) by incurring another $2 million in exploration expenditures. Upon full exercise of the option, Amarc and Galore agreed to form a 70/30 joint venture of the Galore Property.
The extensive mineral tenures that comprise the Galore Property are divided into five claim groups which are subject to five underlying option agreements with the Underlying Owners. Each of these agreements provide for a 1.5% Net Smelter Returns ("NSR") Royalty which may be purchased for $250,000 and a 10% Net Profits Interest ("NPI") Royalty which may be purchased for $400,000.
New Galore Property Agreements
On July 4, 2016, Amarc entered into a new option agreement with Galore whereby the Company acquired the right to purchase 100% of Galore's rights in the Galore Property by paying $550,000 to Galore on a staged basis by January 16, 2018. Upon exercise of the new option the original Galore Option Agreement will terminate.
In addition, on July 4, 2016 Amarc also reached agreements with the Underlying Owners of the Galore Property whereby the Company obtained the right to acquire all of the Underlying Owners' residual interest in and to the Galore Property, including the five NSR Royalties and the five NPI Royalties, by paying a total consideration of $100,000 on a staged basis before January 16, 2018.
During the new option exercise period, all cash payment and exploration expenditure requirements set out in the Galore Option Agreement shall cease to apply, including all cash payments payable to the Underlying Owners.
The Galore Property forms a significant and important part of the district immediately surrounding the IKE copper-molybdenum-silver porphyry discovery and hosts a number of compelling porphyry copper (± molybdenum ± silver ± gold) deposit targets. Collectively, Amarc's extensive mineral claim holdings have the potential to possess the grades and resources necessary to support an important mining camp. In order to efficiently advance the IKE porphyry copper discovery and surrounding district, Amarc has partnered with Thompson Creek Metals Company Inc. ("Thompson Creek") (see release dated February 29, 2016). Under that Agreement, Thompson Creek has the option to acquire up to a 50% interest in IKE and the entire district through a staged investment process that includes the option to acquire an initial 30% interest through investments totaling $15 million on or before December 31, 2019 and the option to acquire an additional 20% interest subject to certain conditions, including the completion of a Feasibility Study within a certain time period.
Amarc Appoints CFO
In other corporate news, Amarc is pleased to announce that Mr. Luqman Khan has been appointed Chief Financial Officer of the Company. A Chartered Professional Accountant (CPA CGA), Mr. Khan has more than 20 years of professional experience in accountancy and business management. For the past decade, he has served in various controllership positions with publicly traded companies associated with Hunter Dickinson Inc. ("HDI"), including Amarc.
About the IKE Project
The new IKE discovery is located 45 kilometres northwest of the historical mining communities of Gold Bridge and Bralorne, BC, in south-central British Columbia ("BC") near the heartland of the provinces producing porphyry copper mines.
Assay results from all 18 holes (10,437 metres) drilled by Amarc at IKE since 2014, combined with results from geological, geochemical and geophysical surveys completed outwards from the area drilled, indicate the presence of an important porphyry-style copper-molybdenum-silver deposit (see Amarc news release December 9, 2015). All drill holes have intersected varying amounts of chalcopyrite and molybdenite mineralization over a broad area measuring 1,200 metres east-west by 1,000 metres north-south and extending to depths of over 500 metres. Grades returned over long continuous drill intercepts compare favourably to the range of copper equivalent grades at operating BC porphyry copper (± molybdenum ± gold ± silver) mines. The IKE deposit remains open to expansion in all lateral directions and to depth.
The district surrounding the IKE discovery has long been explored for its numerous showings of copper, molybdenum, gold and silver mineralization. Exploration results from Amarc's surveys and historical programs by previous operators throughout the district, combined with the common tendency of porphyry deposits to cluster, led the Company to believe a number of targets identified proximal to IKE have potential to host additional bulk-tonnage porphyry copper mineralization.
Amarc is fully committed to working constructively with governments and stakeholders towards the responsible development of the IKE project, while contributing to the sustainable development of local communities. All work programs are planned to achieve high levels of environmental performance and local benefit, including providing opportunities for employment, contracting and training for local people. Amarc is committed to meaningful and constructive engagement with First Nations communities and has offered and remains open to establishing comprehensive and progressive agreements at IKE. The Company also works proactively to support government's consultation duties to assist with timely and fair decision making.
About Amarc Resources Ltd.
Amarc is a British Columbia-based mineral exploration and development company with an experienced and successful management team that is focused on advancing the IKE Project, a major new porphyry copper-molybdenum discovery near the heartland of BC's copper mining industry with proximity to mining infrastructure, power, rail and highways.
Amarc is associated with HDI a diversified, global mining company with a 25 year history of porphyry discovery and development success. Previous and current HDI porphyry projects include some of BC's and the world's most important mineral resources, such as Pebble, Mount Milligan, Kemess South, Kemess North, Gibraltar, Prosperity, Xietongmen, Newtongmen, Florence, Sisson, and Maggie. From its head office in Vancouver, Canada, HDI applies its unique strengths and capabilities to acquire, develop, operate and monetize mineral projects to provide superior returns to shareholders.
Qualified Person as Defined Under National Instrument 43-101
Mark Rebagliati, P. Eng., a Qualified Person as defined under National Instrument 43-101, has reviewed and approved the technical content of this release.
ON BEHALF OF THE BOARD
Ronald W. Thiessen
Chief Executive Officer
Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.
Forward Looking and other Cautionary Information
This news release includes certain statements that may be deemed "forward-looking statements". All such statements, other than statements of historical facts that address exploration drilling, exploitation activities and other related events or developments are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Assumptions used by the Company to develop forward-looking statements include the following: Amarc's projects will obtain all required environmental and other permits and all land use and other licenses, studies and exploration of Amarc's projects will continue to be positive, and no geological or technical problems will occur. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, potential environmental issues or liabilities associated with exploration, development and mining activities, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and tenure and delays due to third party opposition, changes in and the effect of government policies regarding mining and natural resource exploration and exploitation, exploration and development of properties located within Aboriginal groups asserted territories may affect or be perceived to affect asserted aboriginal rights and title, which may cause permitting delays or opposition by Aboriginal groups, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Amarc Resources Ltd., investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission at www.sec.gov and its home jurisdiction filings that are available at www.sedar.com.
SOURCE Amarc Resources Ltd.