Clean Air Metals Announces Payment to Rio Tinto to Maintain Escape Lake Property Option
THUNDER BAY, Oct. 12, 2021 - Clean Air Metals Inc. ("Clean Air Metals" or the "Company") (TSXV: AIR) (FRA: CKU) (OTCQB: CLRMF) is pleased to announce that it has paid, for and on behalf of Benton Resources Inc. ("Benton") (TSX:V BEX), the sum of CAD $1 Million directly to Rio Tinto Exploration Canada Inc. ("RTEC") as Vendor, pursuant to the terms of the definitive option agreement (the "Option Agreement") entered into between the Company and Benton in order to satisfy a payment requirement of Benton under its pre-existing option with RTEC (see previous press release dated January 6, 2020 and May 14, 2020). The Company acquired an option to acquire a 100% right, title and interest in and to the Escape Lake Property (the "Escape Lake Property"), subject to a 1.0% net smelter return royalty to be retained by RTEC, from Benton under the Option Agreement, with such option conditional on Benton exercising its pre-existing option to acquire the Escape Lake Property from RTEC and under the Option Agreement, the Company has agreed to make all of the payments of Benton to RTEC that are required in order for Benton to exercise the pre-existing option. Clean Air Metals agreed to pay to RTEC an aggregate of C$6 million in order for Benton to exercise the pre-existing option, C$3 million of which was originally paid by Benton to RTEC on October 9, 2019, and C$1 million of which was paid by the Company to RTEC on October 9, 2020. The remaining financial obligation to RTEC on behalf of Benton is $1 million due October 9, 2022.
In addition, pursuant to the Option Agreement outlining the terms of a definitive share purchase agreement dated January 6, 2020 entered into between the Company and Magma Metals Pty Ltd. ("Magma"), the Company completed the acquisition of 100% of Panoramic Resources Ltd.'s indirect subsidiary, Panoramic PGMs (Canada) Ltd. ("Pan PGMs"), which owns the Thunder Bay North Property (the "TBN Property"), hosting the Current Lake Deposit. Pan PGM's is now a 100% wholly-owned subsidiary of Clean Air Metals. In consideration of the acquisition of Pan PGMs, Clean Air Metals has also agreed to pay to Magma in equal installments over a three-year period, an aggregate of C$9 million, C$4.5 million of which was paid on closing of the transaction on May 14, 2020, and C$1.5 million of which was paid on May 14, 2021. Two payments of $1.5 million remain by May 13, 2022 and May 13, 2023 respectively.
The Escape Lake Property and the TBN Property are collectively referred to as the "TBN Project". The Company has the right to prepay all remaining property payments at any time. There are no additional exploration or other spending commitments required to fully vest the Option Agreement.
Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Thunder Bay North Project is on the traditional territories of the Fort William First Nation, Red Rock First Nation and Biinjitiwabik Zaaging Anishinabek. The parties together are the Cooperating Participants in a Memorandum of Agreement dated January 9, 2021.
The Company is also in discussions with Red Sky Metis Independent Nation and the Metis Nation of Ontario and other non-proximate First Nation communities. Woodland Heritage Northwest, a Metis-owned consultancy has been retained to conduct archaeological studies on the Thunder Bay North Project and surrounding areas.
About Clean Air Metals Inc.
Clean Air Metals' flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Clean Air Metals project hosts the Current Lake Deposit and magma conduit and the Company is actively exploring the Escape Lake Deposit, a twin structure to the Current Lake Deposit. Executive Chairman Jim Gallagher and CEO Abraham Drost lead an experienced team of geologists and engineers who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development studies. As the former CEO of North American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.
ON BEHALF OF THE BOARD OF DIRECTORS
Abraham Drost, Chief Executive Officer of Clean Air Metals Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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 which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses; results of technical studies, benchmark reports, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in 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, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company's expectations or projections.
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SOURCE Clean Air Metals Inc.
Abraham Drost, Chief Executive Officer of Clean Air Metals Inc., Phone: 807-252-7800, Email: email@example.com