Rugby and Calidus Sign Option Agreement to Fast Track Exploration at Otways Gold-Copper Project, Pilbara in Western Australia...
28 May 2020 - 8:30PM
Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V:
RUG) is pleased to announce that the Company has signed a
Heads of Agreement (“Agreement”) with Calidus Resources Limited
(“Calidus”) (ASX: CAI) to earn an interest of up to 70% in the
Otways Gold-Copper Project (“Otways”).
Otways is located approximately 50 kilometres
from Calidus’ flagship Warrawoona Gold Project (“Warrawoona”) in
the Pilbara, Western Australia. Warrawoona has JORC compliant
resources totalling 800,000 oz gold (indicated) and 450,000 oz gold
(inferred)*. Calidus press release:
|
Calidus
to acquire Otways Project near Warrawoona |
Heads of Agreement
Highlights:
- Calidus to spend A$200,000,
including 1,200 metres (“m”) of drilling, within 12 months of the
Agreement;
- Calidus to spend a further
A$500,000, including a minimum of 3,000m of drilling, within 30
months of the Agreement to earn 50%;
- Calidus to spend an additional
A$500,000, including a further 3,000m of drilling, within 48 months
of the Agreement and issue A$250,000 worth of Calidus shares at the
completion of the spend using a 10-day Volume Weighted Average
Price to earn 70% in Otways.
Rugby’s President and CEO, Mr. Bryce Roxburgh
commented, “Although Otways has significant exploration upside with
a number of unexplored gold and copper targets, we are pleased to
partner with a very successful explorer such as Calidus, and
confident this will produce a positive long-term outcome for Rugby
and its shareholders. Although this represents a considerable
endorsement of Otways potential, it will allow us to focus on our
South American priority projects. Following the lockdown in
Colombia, we intend to immediately follow up the permitting of the
very prospective gold tenure applications acquired through Rugby’s
purchase of the local subsidiary of the major North American gold
miner, when it decided to exit Colombia. We expect that the
restrictions will begin to be lifted in Colombia in June.”
* Source: Calidus Resources website
https://www.calidus.com.au
About RugbyRugby is an
exploration company conducting “discovery stage” exploration on
highly prospective targets in Colombia, Argentina, the Philippines
and Australia. Importantly, Rugby controls a large portfolio of
projects and applications in Colombia that have considerable
potential for significant gold-copper discoveries.
The Company benefits from the experience of its
directors and management, a team that has either been directly
responsible for world-class mineral discoveries or have been part
of the management teams responsible for such discoveries. Prior
companies under their management included Exeter Resource
Corporation and Extorre Gold Mines Limited, which held significant
projects in South America. These companies were taken over by
Goldcorp (Newmont) and Yamana respectively.
For additional information you are invited to visit the Rugby
Mining Limited website at www.rugbymining.com.
Jon Hermanson, VP, Corporate
DevelopmentTel: 604.688.4941 Fax:
604.688.9532Toll-free: 1.855.688.4941 |
Suite 810, 789 West Pender St.Vancouver, BC Canada V6C
1H2info@rugbymining.com |
CAUTIONARY STATEMENTCertain of
the statements made and information contained herein is
“forward-looking information” within the meaning of the British
Columbia, Alberta and Ontario Securities Acts. This includes
statements concerning the Company’s plans at its projects including
progress on obtaining approval for its exploration concession
applications in Colombia, the expected timing of drilling and/or
geophysics programs, prospectivity, high grade potential and
potential for mineral discoveries, the style or occurrence of the
mineralization and drilling costs which involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. In addition the Company holds certain
of its projects under option agreements, which require expenditure
and/ or drilling requirements in order to maintain its interest.
Should the Company not be able to meet its obligations or
renegotiate the agreements it will lose its rights under the option
agreement. Forward-looking information is subject to a variety of
risks and uncertainties which could cause actual events or results
to differ from those reflected in the forward-looking information,
including, without limitation, the effect on prices of major
mineral commodities such as copper and gold by factors beyond the
control of the Company; events which cannot be accurately predicted
such as political and economic instability, terrorism,
environmental factors and changes in government regulations and
taxes; the shortage of personnel with the requisite knowledge and
skills to design and execute exploration programs; difficulties in
arranging contracts for drilling and other exploration services;
the Company’s dependency on equity market financings to fund its
exploration programs and maintain its mineral exploration
properties in good standing; political risk that a government will
change, interpret or enforce mineral tenure, environmental
regulations, taxes or mineral royalties in a manner that could have
an adverse effect on the Company’s assets or financial condition
and impair its ability to advance its mineral exploration projects
or raise further funds for exploration; risks associated with title
to resource properties due to the difficulties of determining the
validity of certain claims as well as the potential for problems
arising from the interpretation of laws regarding ownership or
exploration of mineral properties in the Philippines and Colombia
and in the sometimes ambiguous conveyancing characteristic of many
resource properties, currency risks associated with foreign
operations, the timing of obtaining permits to conduct exploration
activities, the ability to conclude agreements with local
communities and other risks and uncertainties, the ongoing effects
of the COVID 19 virus and including those described in each of the
Company’s management discussion and analysis and those contained in
its financial statements for the year ended February 28, 2019 filed
with the Canadian Securities Administrators and available at
www.sedar.com. In addition, forward-looking information is based on
various assumptions including, without limitation, assumptions
associated with exploration results and costs and the availability
of materials and skilled labour. 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. Accordingly, readers are
advised not to place undue reliance on forward-looking information.
Except as required under applicable securities legislation, the
Company undertakes no obligation to publicly update or revise
forward-looking information, whether as a result of new
information, future events or otherwise.
NEITHER 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
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