Vatic Signs MOU with Falcon Gold for the Wabunk Bay Cobalt Property
Vancouver, British Columbia--(Newsfile Corp. - June 28, 2018) - Vatic Ventures Corp. (TSXV: VCV) (OTCBB: VTTCF) (FSE: V8V3) (the "Company" or "Vatic") is pleased to announce that it has signed a memorandum of understanding (the "MOU") with Falcon Gold Corp. ("Falcon") for the Wabunk Bay cobalt claims (the "Property") adjoining Uchi mine, northwestern Ontario, Canada. Vatic has the right to earn a 60% interest from Falcon (the "Option") by meeting certain expenditure and consideration requirements on the Property.
Falcon has an underlying agreement with the property owner, whereby it has the right to acquire a 100% interest in 2 (cobalt, copper, nickel & PGE's) mining claims in Earngey Township in the Kenora District of northwestern Ontario. The claims comprise 19 claim units and cover an area of approximately 304 hectares (see the Falcon press release of June 13, 2018). The Wabunk Bay property is highly prospective for cobalt, and the Company believes that it can explore and develop potential in a short timeframe there.
In accordance with the terms of the MOU Vatic can exercise the Option by:
- paying to Falcon a $25,000 deposit;
- issuing to Falcon an initial 200,000 units at $0.18 per unit, each unit consisting of one common share plus a warrant to purchase a further common share for $0.25 exercisable for two years (the "Initial Units");
- completing exploration expenditures of $750,000 on the Property by June 27, 2019;
- issuing by June 27, 2019, an additional 200,000 units on the same terms as the Initial Units; and
- paying to Falcon an additional $275,000 by June 27, 2019.
The Property is subject to a 2 kilometer area of interest and is subject to a 1% NSR in favor of the underlying owner, which can be purchased for $1 million any time before commercial production. Upon exercise of the Option the Company and Falcon will form a 60/40 joint venture for further development of the Property subject to the right of the Company to acquire Falcon's 40% interest by issuing shares of the Company to Falcon based on a valuation to be conducted by at least three valuators.
Wabunk Bay Sulphide Mineralization
In 1957, the Ontario Department of Mines reported in its Mineral Resource Circular No. 2 ("MRC 2"):
"The showings occur entirely within a coarse-grained hornblende gabbro cutting greenstone, sediments and various intrusive rocks. The gabbro is 200 feet wide and has a maximum width of 300 feet. The southern 1,000 feet of this body strike north then swing to the northwest for an additional length of 1,800 feet. Chalcopyrite, pyrrhotite and pyrite occur where the gabbro is sheared and especially at the contacts of narrow diabase dikes, which strike north to northeast and are younger than the gabbro."
The MRC 2 further reported on the Wabunk Bay mineralized zones:
"The main showing lies in the north-south portion of the gabbro, strikes near north, and is about 300 feet long; although mineralization is not continuous, it is found along a length of 600 feet. The average width of mineralization cut in five drill holes is 21 feet. An 18-foot chip sample ran 1.08 percent copper and 0.40 percent nickel. A 22-foot chip sample ran 0.44 percent copper and 0.12 percent nickel. The best 25 feet of drill core assayed 0.62 percent copper and 0.04 percent nickel. Core assays gave as high as 0.03 percent cobalt."
Wabunk Bay Exploration History
The history of exploration work in the area of the Wabunk Bay Cobalt Claims is summarized as follows:
- 1941 — Sulphide mineralization is discovered by Mike Colberg.
- 1955 — A prospector, Joe Kolak, restaked the showings and optioned the property to Campbell Island Mines and Exploration Ltd. Work completed included geophysical surveys, trenching and 6 diamond-drill holes, totaling 390 feet in 1956. Surface samples assayed 0.33% Co over 1.5m and 0.15% Co over 7.6m.
- 2003 — Jilbey Gold Exploration Ltd. carried out a large regional reconnaissance program in the greenstone belts south and east of Red Lake, Ontario. The Wabunk Bay area was covered by an airborne geophysical survey that identified two magnetic and conductive anomalies.
Demand for Cobalt, a key ingredient in Lithium-ion batteries, is expected to grow by 40% in 2018, mainly as a result of the adoption of electric and hybrid vehicles in Europe, China, the US and elsewhere; this growth in demand comes on top of significant growth in the recent past that already caused significant price increases for the metal during 2017. With the main source of Cobalt being the African Copper belt countries Zambia and the DRC, countries where a multitude of established companies and juniors have already staked their claims, any diversification in resource opportunities is welcome. The Company expects the Wabunk Bay project to be such an opportunity.
The technical content of this news release has been reviewed and approved by Mr. Pieter J. Bakker, MSc. FAusIMM, who is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
ON BEHALF OF THE BOARD OF DIRECTORS
Nasim Tyab, Director
ABOUT VATIC VENTURES CORP.
Vatic Ventures Corp. (www.vaticventures.com) is a junior exploration company and continues to assess new opportunities and prospects.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. "Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.