Argus Metals Signs Option to Acquire the Panther Creek Cobalt Project in Idaho; Announces Private Placement and Initiates Corporate Name Change to ePower Metals Inc
October 24, 2017
Vancouver, British Columbia, October 24, 2017 - Argus Metals Corp. (the “Company” or “Argus”) (TSX.V: AML) announces that:
- Argus has entered into a mineral property option agreement with Utah Mineral Resources, LLC (“UMR”) to earn up to a 100% interest in and to the Panther Creek Cobalt Project located in the heart of the Idaho Cobalt Belt, (terms below).
- The Company also announces a minimum $1,000,000 private placement; $0.10 unit with a $0.30 half warrant for 24 months, (details below).
- With a change of focus to battery related metals the company will change it’s name to ePower Metals Inc.
Michael Collins, President and CEO of Argus comments, “The Company is committed to creating significant shareholder value by putting together a high-quality property portfolio of cobalt projects that the Company believes are undervalued, strategically positioned and have the potential to provide future supply to the growing rechargeable battery sector. The Panther Creek Cobalt Project demonstrates cobalt grades and widths that are comparable to the nearby eCobalt permitted “Ram Mine.” The 2.3 mile Long Dike-Sweet Repose cobalt trend give us a lot of room to identify significant cobalt resources. We believe Panther Creek meets all these criteria and are pleased to announce it today as our first project in this portfolio.”
The Panther Creek Cobalt Property
The Panther Creek Cobalt Property ("the Property") is located at the heart of the Idaho Cobalt Belt and is comprised of 153 lode mining claims totalling 3,060 acres and a 41.3 acre mining lease on private land known as the Long Dike Property. The property is road accessible and located 26 miles west of the Salmon, East-Central Idaho.
The Property is well located and adjoins to the northeast, the Blackbird Copper-Cobalt Mine in the Blackbird District. The Panther Creek claims are contiguous with the claims of eCobalt Solution’s (“eCobalt”) claims and the Ram cobalt-copper-gold Mine.
There are several historic mine workings both on the Long Dike patent claims as well as at the Sweet Repose Mine which form a linear trend that ends at the historic Blackbird Mine. A historic mine adit on the property was channel sampled by US Geological Survey and returned 1.04% cobalt and 4.14% copper across 10 feet or 3.04 metres (Re: US Geol. Surv. Open File Report 98-478). Surface sampling on the property by UMR has returned values from trace to 0.91% cobalt and 3.63% copper (GS-5), and 0.74% cobalt and 0.27% copper. The cobalt-copper mineralization is hosted in the micaceous quartzites of the Apple Creek Formation which is a similar geological setting as the historic Blackbird Mine as well as eCobalt’s Ram Mine.
Idaho Cobalt Belt
The Idaho Cobalt Belt trends northwest-southeast for nearly 37 miles in east-central Idaho (Fig. 1). Included within this belt are numerous historic mines and prospects of the centrally located Blackbird district, and deposits of the Iron Creek area at the southeast end (U.S. Geological Survey, 2010). The Idaho Cobalt Belt is important for the United States of America because it contains the largest known cobalt resources in the United States (Slack et al., 2012). eCobalt is developing the Idaho Cobalt Project, located to the west of the Panther Creek Cobalt Project in the Blackbird district. eCobalt has just completed a Feasibility Study with a Measured and Indicated Resource of 3.44 million tonnes grading 0.59% cobalt and 0.73% copper, (http://www.ecobalt.com/project/technical-reports).
History and Production
Production in the Blackbird district began in 1917 following initial discovery of the sulfide deposits in 1893. Minor cobalt was produced from 1917 to 1920 at the Haynes-Stellite Mine (Bennett, 1977). Major production began in 1949 and continued intermittently to 1960 at the Blackbird (Uncle Sam) underground mine and the Blacktail open pit, which together yielded ca. 5 Mt of ore averaging 1.5 wt % copper and 0.6 wt % cobalt.
Terms of Exercise of the Option:
To earn an initial 50% interest in the Property Argus needs to make the following payments:
(i) payment of $25,000 upon signing (paid);
(ii) payment of an additional $150,000, and issuance of 5,500,000 common shares, within 14 days following receipt of TSX Venture Exchange approval;
To earn 100% interest in the Property Argus needs to make the following additional payments and expenditures:
(iii) payment of an additional $150,000, (in cash or shares at Argus’s option), and incurring at least $75,000 of expenditures on the Property within the first 12 months;
(iv) payment of an additional $150,000, (in cash or shares at Argus’s option), and incurring at least an additional $100,000 of expenditures on the Property within 24 months; and
(v) incurring at least an additional $200,000 of expenditures on the Property within 36 months,
In addition, should Argus determine that proven and probable mineral resources, (as determined in compliance with NI 43-101), of at least four million tonnes grading a minimum 0.25% cobalt, are contained within any portion of the Property, on or before five years following the date of the agreement, Argus will issue to UMR an additional 2,000,000 shares.
Upon exercise of the option, UMR will retain and will be entitled to receive, a 2% NSR Royalty on all product derived from the Property.
It will be a condition precedent of closing that Argus undertakes a private placement to raise at least $1,000,000. In this regard, Argus also announces it will be undertaking a non-brokered, part-and-parcel private placement of 10,000,000 units at $0.10 per unit, each unit consisting of one common share and onehalf share purchase warrant exercisable at $0.30 for 24 months.
Closing of the agreement with UMR and closing of the private placement are subject to prior approval of the TSX Venture Exchange.
In conjunction with the Company’s proposed acquisition of an interest in a cobalt property, and to reflect the Company’s focus in energy related metals such as cobalt, manganese and copper, the Company intends to change its name to “ePower Metals Inc.”
Michael Collins, P.Geo. is a director and an officer of the company and is the qualified person for Argus for the Panther Creek project.
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO
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 news release.
We seek safe harbor.
For further information, please contact:
Argus Metals Corp.
501 - 525 Seymour Street,
Vancouver BC, V6B 3H7
Telephone: (604) 764-7094
Facsimile: (604) 568-7608