News
LM Property - Lease Terms Amended
November 24, 2015
Bitterroot Resources Ltd.'s (BTT, TSX-V, "Bitterroot") wholly-owned Michigan subsidiary Trans Superior Resources, Inc. ("Trans Superior"), together with the lessors of the LM Property in the Upper Peninsula of Michigan, have agreed to two amendments to the terms of their minerals lease.
The first amendment gives Trans Superior the option to reduce the current 3% net smelter returns royalty (NSR) to a 2% NSR by paying US$1,000,000 at any time prior to December 31, 2064. The option is being purchased for US$4,000, plus issuing 100,000 Bitterroot common shares to the lessors. The Bitterroot common shares will be subject to a four (4) month hold period and will bear legends defining other resale restrictions, as per the regulations of the TSX Venture Exchange and US securities regulations. This amendment is subject to acceptance by the TSX Venture Exchange.
Under the second amendment, Trans Superior and the lessors have agreed to extend the term of the minerals lease by 41 years to December 31, 2064. In consideration for extending the term, the next annual advance royalty payment will be increased to US$110/acre/year, commencing May 31, 2016. The advance royalty payments will increase by $10/acre/year for each subsequent year that the lease is in effect.
The 40-acre LM property, formerly referred to as the "Loosemore" property, hosts a high-quality, drill-ready nickel-copper-platinum-palladium ("Ni-Cu-PGM") exploration target in the Baraga Basin, located just 16 miles west of Lundin Mining's high-grade Eagle Mine. The LM property is prospective for magmatic Ni-Cu-PGM deposits. Mineralized boulders have been located in a gravel pit less than one (1) mile east of the Property. Based on exploration work done by previous lessor Prime Meridian Resources Corp, the LM property has potential to host the feeder zone of a multi-phased mafic intrusive system, as suggested by core sample analyses and the presence of magnetic and gravity highs centred on the property. Bitterroot is planning to conduct a detailed ground magnetic survey on the property in late 2015. Drilling is planned in 2016, subject to financing.
Additional information on Bitterroot Resources Ltd. is available at www.bitterrootresources.com. Mr. Glenn Scott, P.Geo is the Qualified Person responsible for the technical content of this disclosure.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael S. Carr
Director
Neither 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.
FORWARD LOOKING STATEMENTS: This document contains statements about expected or anticipated future events and/or financial results that are forward-looking in nature, including statements with respect to the planned completion of the Transaction, and as a result, are subject to certain risks and uncertainties, such as the failure to fulfill the conditions precedent to the Transaction, general economic, market and business conditions, regulatory processes and actions, technical issues, new legislation, competitive conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and the company's ability to execute and implement its future plans. Actual results may differ materially from those projected by management, and therefore undue reliance should not be placed on any forward looking statements. Bitterroot disclaims any intent or responsibility to update any forward looking statements contained herein, except as required by applicable securities laws. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
The first amendment gives Trans Superior the option to reduce the current 3% net smelter returns royalty (NSR) to a 2% NSR by paying US$1,000,000 at any time prior to December 31, 2064. The option is being purchased for US$4,000, plus issuing 100,000 Bitterroot common shares to the lessors. The Bitterroot common shares will be subject to a four (4) month hold period and will bear legends defining other resale restrictions, as per the regulations of the TSX Venture Exchange and US securities regulations. This amendment is subject to acceptance by the TSX Venture Exchange.
Under the second amendment, Trans Superior and the lessors have agreed to extend the term of the minerals lease by 41 years to December 31, 2064. In consideration for extending the term, the next annual advance royalty payment will be increased to US$110/acre/year, commencing May 31, 2016. The advance royalty payments will increase by $10/acre/year for each subsequent year that the lease is in effect.
The 40-acre LM property, formerly referred to as the "Loosemore" property, hosts a high-quality, drill-ready nickel-copper-platinum-palladium ("Ni-Cu-PGM") exploration target in the Baraga Basin, located just 16 miles west of Lundin Mining's high-grade Eagle Mine. The LM property is prospective for magmatic Ni-Cu-PGM deposits. Mineralized boulders have been located in a gravel pit less than one (1) mile east of the Property. Based on exploration work done by previous lessor Prime Meridian Resources Corp, the LM property has potential to host the feeder zone of a multi-phased mafic intrusive system, as suggested by core sample analyses and the presence of magnetic and gravity highs centred on the property. Bitterroot is planning to conduct a detailed ground magnetic survey on the property in late 2015. Drilling is planned in 2016, subject to financing.
Additional information on Bitterroot Resources Ltd. is available at www.bitterrootresources.com. Mr. Glenn Scott, P.Geo is the Qualified Person responsible for the technical content of this disclosure.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael S. Carr
Director
Neither 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.
FORWARD LOOKING STATEMENTS: This document contains statements about expected or anticipated future events and/or financial results that are forward-looking in nature, including statements with respect to the planned completion of the Transaction, and as a result, are subject to certain risks and uncertainties, such as the failure to fulfill the conditions precedent to the Transaction, general economic, market and business conditions, regulatory processes and actions, technical issues, new legislation, competitive conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and the company's ability to execute and implement its future plans. Actual results may differ materially from those projected by management, and therefore undue reliance should not be placed on any forward looking statements. Bitterroot disclaims any intent or responsibility to update any forward looking statements contained herein, except as required by applicable securities laws. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.