Norvista Capital Corporation Provides Corporate Update
Toronto, Ontario--(Newsfile Corp. - April 6, 2020) - Norvista Capital Corporation (TSXV: NVV) ("Norvista" or the "Company") is pleased to provide an update on the operational and liquidity status of its three core investee companies. The principals of Norvista act as directors and or officers of these investee companies and as such have been working with management and the boards of these portfolio companies to develop strategic alternatives designed to cope with the disruption in both the capital and commodity markets resulting from the COVID-19 pandemic. Norvista continues to upload relevant press releases from its investee companies to the Company's website in order to provide ongoing detailed information on all material developments affecting our portfolio companies.
Minera Alamos Inc. continues construction work on its fully funded, 100% owned Santana open-pit, heap leach, gold project in Sonora Mexico in compliance with current governmental requirements. The site area is relatively remote from large population centres and to-date project work has been allowed to continue with appropriate measures implemented to protect the health of the workforce. Minera continues to project that it will join the ranks of North America's gold producers in Q4 of 2020. In addition, the company's 100% owned La Fortuna open-pit gold project, also located in Mexico, is nearing the end of the permitting process and Minera could make a construction decision on La Fortuna this year or early in 2021. As with the Santana project, La Fortuna exhibits extremely attractive economics. Minera has sufficient liquidity to fund its operations over the course of 2020 with the prospect of generating free cash flow from operations in late 2020 to fund ongoing operating costs and future project developments.
Rockcliff Metals Corporation continues to move its Manitoba copper projects forward on both permitting and development fronts with the objective of making a construction decision on one or two of its projects by year-end or in the first quarter of 2021. Rockcliff currently has combined cash and cash equivalents of approximately $13,000,000. Rockcliff is in the process of demobilizing its drilling programs as they prepare for the spring thaw that will continue through to mid-May. The decision to resume drill programs in May will be made in the context of the market at the time. In the interim the company will continue the permitting process and has commenced the preparation of a Preliminary Econmic Assessment which will combine the sequential development of Rockliff's 100% owned Tower project and its 100% owned Rail project. The PEA, which is projected to be released in late May or June, will incorporate usage of the company's leased 1,000+ tonnes per day mill and tailings facility in Wabowden, Manitoba. Both projects are well within trucking distance to the mill. The Board of Rockcliff will determine whether to commence preparation of a Pre-Feasibility Study upon completion of the PEA in the context of the market at that time. Any delays in the resumption of drilling and the commencement of the PFS will be done to conserve cash until capital markets normalize and the availability of development debt and equity funding returns.
Nevada Zinc Corporation continues to pursue the idea of producing zinc chemicals for the US agricultural industry as an alternative to producing and selling zinc concentrate. Mineralization from the company's strategically located Lone Mountain zinc oxide project in Nevada lacks significant amounts of deleterious elements, making it very suitable as a potential feedstock for the production of zinc chemicals which are value add products relative to the production and sale of a zinc concentrate to be used for the production of zinc metal. The issue of supply chain security in many sectors of the US economy, including food supply, has taken on renewed importance in light of the recent disruptive effects of the COVID-19 pandemic. Approximately 60% of the zinc sulfate consumed by US growers and farmers is currently imported, mostly from China. Nevada Zinc's recent discussions with market participants validates the company's believe that "made in America" zinc chemicals will be well received by the agricultural industry. The Lone Mountain deposit is strategically located proximal to the $46 billion California agricultural market whose specialty crop growers use significant amounts of zinc sulfate in their operations to combat disease and improve crop yields. When the current COVID-19 restrictions are lifted the company's activities for the duration of 2020 will consist of the continuing evaluation of concentrating and extraction processes, the shipment of ore samples to consultants to confirm the zinc sulfate production process, producing zinc sulfate samples and improving the confidence level of resources at the Lone Mountain deposit. The company is currently reviewing financing options either through the market and or with strategic partners to fund its 2020 work program.
Norvista is a resource-based merchant bank with an investment portfolio of public securities issued by companies engaged in precious and base metal exploration and development. The portfolio is comprised primarily of three core investee companies with operations located in Mexico, Canada and the United States. Norvista's core investee companies are Minera Alamos Inc., Rockcliff Metals Corporation and Nevada Zinc Corporation. The Company seeks to monetize its investments through a combination of direct market sales, share disposition transactions with strategic purchasers or investee company share distributions to Norvista shareholders. All or a portion of the proceeds from the sale of investee company shares will be distributed to Norvista shareholders at the discretion of the Company's Board of Directors.
Bruce Durham, P.Geo., Managing Director of Norvista, is a Qualified Persons as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Durham is responsible for the scientific and technical data presented herein and has reviewed and approved this news release.
For further information, please contact:
Norvista Capital Corporation
Don Christie, President & CEO
Off: (416) 504-4171
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Cautionary Note Regarding Forward-Looking Statements: This news release includes forward-looking statements that are subject to risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of Norvista and its invstee companies to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. All statements contained in this news release, other than statements of historical fact, are to be considered forward-looking. Although Norvista 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. Accordingly, readers should not place undue reliance on forward-looking information. Norvista does not undertake to update any forward-looking information except in accordance with applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/54174