TIDMCMRS
RNS Number : 4566S
Caerus Mineral Resources PLC
16 November 2021
16 November 2021
Caerus Mineral Resources PLC
('Caerus' or the 'Company')
Extension of Option Agreement with Jubilee Metals Group PLC
Caerus Mineral Resources (LON: CMRS), the exploration and
resource development company focused on developing mineral
resources in Europe to support the global "Clean Energy"
initiative, is pleased to inform shareholders of the signing of an
extension to the Option Agreement (the "Option" or "Agreement")
between the Company and Jubilee Metals Group PLC ("Jubilee").
Highlights
-- Jubilee and Caerus have agreed to extend the agreement for a
further period of 18 months within which window a positive Joint
Venture decision is anticipated.
-- With the recent acquisition by Caerus of highly prospective
new licences and assets, the Parties recognise that the scale of
the opportunity has increased significantly
-- Good progress has been achieved during the initial Option
period and the companies have jointly identified dumps and
properties that warrant further detailed investigation with a view
to forming a Joint Venture for development
-- The main focus remains the Troulli - Kokkinapetra Project
where both Parties are working towards a possible joint venture
early in 2022
-- Work programmes and in-country design and engineering support
are expected to increase as Jubilee advances test work towards
finalising a processing plant for production purposes
Commenting on the extension of the Option Agreement, Chief
Executive Officer Martyn Churchouse said " The main focus of our
Waste to Revenue development remains the Troulli Project and a
large number of samples are currently being assayed whilst bulk
samples are subject to metal recovery test work by Jubilee. Very
good progress has been made and we look forward to a swift and
positive conclusion comprising a first Joint Venture with Jubilee.
In this context, plans have been made for a team of Jubilee
engineers to visit site before the end of November. The positive
feedback from initial test work and the innovative approach adopted
by Jubilee has incentivised Caerus to review and assess a much
wider range of resource types than originally targeted. Both oxide
and sulphide mineralisation are under the spotlight and the number
of potential targets has increased significantly.
The extension of the Option period provides Caerus with the
ability to complete more detailed reconnaissance on the enlarged
suite of licences including the collection of samples from the
recent major trenching exercise and ongoing drilling. This will
provide Jubilee with the raw materials required for their extended
metallurgical test work programme. It also means Jubilee can focus
on the more advanced work being undertaken on the Troulli -
Kokkinapetra Project in the knowledge that the extension allows for
further investigation on the remaining prospective projects in the
Caerus portfolio. We are working closely with Jubilee and their
test work and original thinking is opening-up new avenues for
investigation of different resource types and new opportunities for
Caerus".
Summary of the Terms of the Option Agreement ("Option" or
"Agreement")
-- The 18-month extension is effective immediately
-- All operational costs to be met by Jubilee with no material cost to Caerus
-- 18-month extension providing both the required time for
detailed test work for the Troulli Project in parallel with
assessment and both mineralogical and metallurgical test work of
all other prospective projects within the Caerus portfolio of
licences
-- Jubilee has the exclusive option to elect to convert one or
more projects to a Joint Venture under terms to be agreed and at
any time within the extended Option period
-- If a Joint Venture is agreed, Jubilee will design, finance
and execute construction of any processing plant and become its
operator
-- Any Joint Venture will operate on a profit-sharing basis
after recovery by Jubilee of its initial capital expenditure and
other "up-front" costs
Option Agreement Rationale
-- This Option Agreement extension enables Caerus and Jubilee to
expand the previously agreed Work Programme to investigate and
assess the multiple waste stockpiles bearing residual copper and
gold from the 16 mines that operated historically on Caerus'
concessions and, sulphide resources occurring either as residual
ore left by previous operators or newly discovered mineralisation
where Caerus is currently undertaking exploration and resource
drilling and conversion to Mineral Resources.
-- The targeted wastes were discarded in an era when metal
market dynamics were very different from today, and there was no
incentive to optimise recoveries from ore feeds, nor any commercial
or environmental benefits from doing so. The dramatically changed
commodity price environment for copper in today's world is driven
mainly by the global decarbonisation of the transport and energy
sectors. This creates an opportunity for Caerus to form a working
relationship with Jubilee and utilise their skills and experience
in materials reprocessing. These will form the foundation of the
Work Programme under the Agreement that will be delivered jointly
with Caerus personnel.
-- The ultimate objective is to identify and define projects
within the Caerus portfolio that can be 'scaled-up' and prioritised
into one or more Joint Ventures targeting profitable production
using modern designs and waste processing technologies guided and
financed by Jubilee.
For further information , please visit
www.caerusmineralresources.com or contact:
Caerus Mineral Resources plc:
Martyn Churchouse info@caerusmineralresources.com
Chief Executive Officer +44 (0)1249 782162
--------------------------------
Novum Securities
Jon Bellis +44 (0) 20 7399 9425
--------------------------------
Follow us on Twitter at @CaerusMineral
About Caerus Mineral Resources
Caerus Mineral Resources is a European focused copper-gold
resource development and exploration company with a portfolio of
mineral exploration licences located in Cyprus. The Country has a
well-developed infrastructure and history of mineral exploration
and production, which has been dormant over the last 50 years and
provides significant undiscovered value.
With investors recognising copper as one of the cornerstone
metals for the Clean Energy Transition centred upon the Electric
Vehicle and Stationary Energy sectors, Caerus is working to rapidly
expand its copper exploration and production objectives. The Caerus
licence portfolio includes 16 former mines which operated with an
average head grade of approximately 2% copper.
Caerus' licence portfolio comprises brownfield sites, where
historic mining has taken place, and greenfield licences, where
there has been no systematic exploration. The Brownfield sites and
the former high-grade copper-gold mines they host are evidence of
rock types and structures conducive to Volcanogenic Massive
Sulphide ("VMS") mineralisation. As VMS deposits characteristically
occur in camps or clusters, it is the Company's view that its
licences are prospective for both extensions to existing or
mined-out orebodies together with new discoveries.
The combination of brown and greenfield exploration provides
optionality and the opportunity for the Company to quickly build a
resource portfolio that can be commercially developed.
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
END
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