November 30, 2015 – Brixton Metals Corporation (TSXV: BBB) (the “Company” or “Brixton”) is pleased to announce that is has entered into an asset purchase and sale agreement with Canagco Mining Corp. (“Canagco”) to acquire a 100% interest in the claims comprising the past-producing Langis silver mine (the “Property”) located in the historic Cobalt silver mining camp of northeastern Ontario (the “Agreement”). Brixton will issue 3,242,500 common shares of the Company (the “Brixton Shares”) to acquire the Property, with Brixton Shares being issued to Canagco and certain other persons identified by Canagco in satisfaction of outstanding liabilities of Canagco. Brixton will also make a cash payment of $55,000.
All Brixton Shares issued pursuant to the Agreement will be subject to a twelve month lock-up from the date of closing as well as the statutorily required hold period. Certain claims comprising the Property are subject to a 2% net smelter royalty and the completion of the Agreement is subject to certain conditions, including TSX Venture Exchange (“TSXV”) approval and approval of the sale of the property by Canagco’s shareholders.
Chairman and CEO of Brixton, Gary R. Thompson stated, “We are excited to be adding the Langis property to the Company’s portfolio and we believe it will be an accretive transaction with significant upside potential. The Langis project represents a low cost entry into a silver district that has not seen much in the way of modern exploration techniques. New discovery potential is high with a strong possibility to generate mineral resources from past work and additional exploration.” Mr. Thompson further stated, “Brixton will continue to seek accretive precious metal opportunities with the goal of being well positioned for a sector recovery and to develop shareholder value.”
Langis Project Highlights
- Past production from 1908 to 1989 of 10.4M ounces of silver from 379,479 tonnes or 418,305 short tons, having a recovery grade of approximately 25 oz/t or 777.60 g/t silver.
- Silver recovery estimates range from 88% to 98% based on historical records.
- Excellent local infrastructure; year round road access, close proximity to power, railway, gas-pipeline, small scale mills, a refinery and assay lab.
- The most important mineral is native silver followed by cobaltite, niccolite, ruby silver, argentite, bismuth and chalcopyrite.
- Drilling next to historical mine site intersected a new zone prior to the silver price collapse in 1990: 2,115.04 g/t over 9.4 metres and 1,262.80 g/t Ag over 3.9 metres.
- Low annual holding and drilling costs.
Langis Drill Intercepts, Discovery Zone Pre-1990:
|Drill ID||Mine level feet||Grade oz/t Ag||Interval feet||Grade g/t Ag||Interval metres|
Please click on the link below to see the Langis mine sample link (note native silver in the centre of the photo
The Langis project to be acquired including other lands in the Cobalt Camp is 2,520 hectare in size. The project is located 500 km north of Toronto, Canada. The high-grade silver mineralization occurs as steeply-dipping veins within any of the three main rock types; Archean volcanics, Coleman Member sediments and Nipissing diabase. The Cobalt camp has produced over 420 million ounces historically of silver with some reported assays reaching 255,146 g/t Ag or 9,000 oz/t Ag over 0.36 metres. The unmined Langis zone intersected by drilling: 2,115.04 g/t over 9.4 metres and 1,262.80 g/t Ag over 3.9 metres. This area will be the focus for follow up exploration work. According to historical Langis reports, the zone was traced to over 1,000 metres along strike and a vertical extent of 260 metres with true thickness being unknown.
Please click on the following link to view the Langis Cross-section: http://brixtonmetals.com/wp-content/uploads/2015/11/Langis-Cross-Section_V2.jpg
The Langis project does not currently contain any mineral resources or mineral reserves.
As part of the Company’s due diligence, Brixton’s management met with the Timiskaming First Nations and plans to continue its early engagement with a goal towards establishing a respectful relationship and a memorandum of understanding.
Mr. Sorin Posescu, P.Geo., VP Exploration, is a Qualified Person as defined under National Instrument 43-101 standards and has reviewed and approved this news release.
The proposed acquisition of Property by Brixton was initiated by Added Capital Inc., (“Added Capital”) Added Capital acted as financial advisor to Brixton. Brixton has agreed to pay to Added Capital a success fee of 5% of the transaction value, payable equally in cash and common shares of the Company (subject to TSXV approval).
Information Sources: Cobalt Museum Thompson 2015; Technical Report on the Langis Project by Dale R. Alexander, P.Geo, May 17, 2013; Approved Filing Statement for Everfront Ventures Corp July 31, 2013; Annual Report, Agnico Eagle Mines 1987; Interim Report, Agnico Eagle Mines Q2-1986; Agnico Eagle Mines, Langis Mine-New Mine Site, Plan & Section 1987;
About Brixton Metals Corporation
Brixton is an exploration company focused on the advancement of its projects toward feasibility.
The 28,000 hectare Thorn Project is located in the Sutlahine River area of northwestern British Columbia, Canada, approximately 105 km ENE from Juneau, AK. The Thorn project hosts a district scale Triassic to Cretaceous volcanoplutonic complex with several styles of mineralization related to porphyry and epithermal environments. Targets include sediment hosted gold, high-grade Ag-Au-Pb-Zn bearing diatreme-breccia zones, high-grade Au-Ag-Cu veins and volcanic hosted structurally controlled gold-silver zones. Brixton has established a maiden inferred resource of 21.5Moz AgEq from 7.4 Mt at 89.75 g/t AgEq. Further information regarding the Thorn Project, including that relating to resource estimates, can be found on the in the Company’s technical report prepared by SRK Consulting for the Thorn Project dated December 12, 2014 and filed on SEDAR. Read more at http://brixtonmetals.com/thorn-technical-reports/
Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB. For more information about Brixton please visit our website at www.brixtonmetals.com.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Chairman and CEO
Tel: 604-630-9707 or email: email@example.com
Neither the 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.
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, or other similar expressions. All statements, other than statements of historical fact included herein including, without limitation, statements regarding the completion of the Agreement, the anticipated closing of the acquisition, TSXV approval, Canagco shareholder approval, the ability of Brixton to enforce the lock-up agreements, and the exploration potential of the Langis property based on historical information resources estimates on the Thorn Project are forward looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; and the additional risks identified in the annual information form of the Company or other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.