Rogue closes acquisition of the Snow White Project
Rogue Resource equipment at work on another one of the company's projects in Northern Ontario — Photo courtesy Rogue Resources Inc.
TORONTO, Dec. 14, 2017 (GLOBE NEWSWIRE) -- Rogue Resources Inc. (TSX-V:RRS) (“Rogue” or the “Company”) is pleased to announce closing of its acquisition of the Snow White Quartz Project (“Snow White” or the “Project”), located near Massey, Ontario, Canada from a Sudbury-based prospector (the “Seller”) pursuant to an agreement (the “Agreement”) previously announced on October 20, 2017.
“We received promising results from our confirmatory due diligence and are pleased to have closed this acquisition,” said Sean Samson, President and CEO of Rogue Resources. “We are excited to begin advancing the Project, marketing the Snow White material, developing a viable Ontario business that is expected to generate cash flow for our investors and for the Company’s investment in further growth across its portfolio.”
The Agreement
Under the terms of the Agreement, Rogue has purchased the Project by delivering, among other things, the following to the Seller:
- cash payment at closing (the “Closing”) of CAD$25,000;
- issuance of 150,000 Rogue common shares (“Common Shares”) at Closing, subject to the approval of the TSX Venture Exchange (“TSXV”);
- additional cash payments of up to an aggregate of CAD$725,000 following Closing upon the earlier of achievement of certain milestones and anniversaries of Closing (the “Payment Period”);
- additional issuance of up to an aggregate of 900,000 Common Shares during the Payment Period, subject to the approval of the TSXV; and
- grant of a 2% net return on all quartz/silica from the Project, subject to a reservation by the Company of a buy back right upon payment of an additional $2 million to the Seller.
Upon an uncured event of default under the Agreement, the Project shall revert to the Seller and the Company shall have no interest in the Project.
Project Overview
The Snow White property consists of three staked mining claims representing approximately 160 hectares, located approximately 26 km northwest of the town of Massey, 125 km west of the city of Sudbury and 500 km north-northwest of Toronto. The Project currently has Class A and Class B Pit-Quarry-Aggregate Permits for unlimited annual silica/quartz production. Rogue has met with the Ontario Ministry of Natural Resources and Forestry to discuss and verify the existing aggregate permit.
The area surrounding the Project is equipped with good infrastructure, an existing access road, and is also proximate to deep-water ports on Lake Huron that the Company expects could be used to access export markets from the Project. Rogue has been in contact with local contractors, as well as the port’s owners, for preliminary operations and logistics contracting discussions.
The work completed on Snow White at this stage is preliminary in nature and the limited drill data and metallurgical analysis are too speculative geologically to have economic considerations applied to them that would enable them to be categorized even as mineral resources. There is no certainty that this Project will be put into production.
Rogue plans to complete a preliminary National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) technical report on Snow White and file to SEDAR in January 2018.
Similar to the past two years, the Company is also developing a detailed plan for 2018, outlining the major events anticipated for the year.
An investor conference call will be held in January to discuss Snow White and the 2018 Plan in further detail.
About Rogue Resources Inc.
Rogue is a mining company focused on generating positive cash flow. Not tied to any metal, it looks at rock value and good grade deposits that can withstand all stages of the metal price cycle. The Company remains focused on advancing its silica/quartz business with the Silicon Ridge Project in Quebec and the Snow White Project in Ontario, exploring its other assets, including the gold potential at Radio Hill, and identifying additional projects or mines that meet its criteria.
For more information visit www.rogueresources.ca.
Qualified Person
The Company’s Projects are under the direct technical supervision of Paul Davis, P.Geo., and Vice-President of the Company. Paul is a Qualified Person (“QP”) as defined by NI 43-101.
