VANCOUVER, BC / ACCESSWIRE / March 2, 2020 / Lucky Minerals Inc. (TSXV:LKY)(OTCPINK:LKMNF)(FRANKFURT:LKY) ("Lucky" or the "Company") is pleased to announce that it has entered into a memorandum of understanding (the "Agreement") with First Quantum Minerals Ltd. ("First Quantum") whereby First Quantum shall acquire exclusive rights to explore for copper deposits on the Fortuna Concessions for a period from signing to January 23, 2021 (the "exclusivity period"). Lucky retains the right to explore on the entirety of the concessions and will focus its efforts on gold targets in 2020. Lucky retains a 100% interest in all primary-gold deposits and copper interests of less than a potential 500,000 tonnes of payable copper.
Lucky CEO, Adrian Rothwell, stated "This agreement is testament to the quality and size of the Fortuna Concessions, which lie in a known prolific and underexplored gold and copper district in Ecuador. We look forward to working with First Quantum to quickly advance multiple copper targets on the Fortuna Concessions and to leverage this work to advance our understanding of gold targets on Fortuna."
Exclusivity Period
The exclusivity period shall expire on January 23, 2021 at which time the parties may enter into an option and joint venture agreement on specific targets on a portion of the Fortuna Concessions.
As part of the exclusivity agreement First Quantum will contribute towards the Fortuna Concession fees and will undertake certain minimum exploration activities to assess the claims. These activities will include - but are not restricted to - mapping, sampling, geophysics and any work needed to generate drill targets, as well as any legal due diligence.
At the conclusion of the exclusivity agreement First Quantum will have the option to continue to the second "Target Testing" Phase.
Target Testing
The decision to continue to Target Testing is at the sole discretion of First Quantum and shall be communicated to Lucky by December 25, 2020. In this stage First Quantum shall retain exclusive rights on specific targets, and agrees to drill, on each target, a minimum of 2,000 metres within 18 months of full drill permits being granted. First Quantum shall cover all tenement fees on the specific concessions for the duration of this period. Notice to move to the third "earn-in phase" shall also be at the sole option of First Quantum and notice will be provided to Lucky within 60 days of the end of this period.
Earn-in Phase
Upon entering into the earn-in phase, the parties shall enter into an Option Agreement and First Quantum shall make a one-time cash payment to Lucky of US$1,000,000. The earn-in period is for a maximum of 5 years in which First Quantum must drill a total of 5,000 metres per year on the Option Property for a total of 25,000 metres, or will be obligated to pay Lucky an annual payment of US$1,000,000 with a one-time 12 month deferral option on payment of US$500,000. If drilling has been completed before the 5-year term is up and First Quantum is moving towards the achievement of all geological, mining, metallurgical, environmental, social and economic studies necessary to make a commercial decision to mine, Lucky may waive this penalty fee. Upon completion of this work commitment and preparation of a NI43-101 compliant resource report demonstrating a minimum of 500,000 tonnes of payable copper, the parties shall enter into a Joint Venture Agreement whereby Lucky retains a 30% interest in the project by funding its share of a feasibility study, up to a maximum commitment of US$1,500,000, above-which all costs are First Quantum's obligation. If Lucky chooses to not fund this study, it shall retain a 15% interest in the project, at no cost, through to the completion of a feasibility study.
This Agreement is subject to TSX Venture Exchange approval.
About Lucky
An exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world class deposits. Lucky owns a 100% interest in the Fortuna and Emigrant Projects.
The Company's Fortuna Project is a royalty-free 550km2 (55,000 Ha, or 136,000 Acres) exploration concession. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.
The Emigrant Creek Project covers a 15 km2 area in an intensely altered and mineralized porphyry copper-gold-molybdenum system in southern Montana.
Qualified Person:
Victor Jaramillo, M.Sc.A., P.Geo., Lucky's Exploration Manager and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the Fortuna Project for Lucky Minerals and has reviewed and approved the technical information contained in this news release.
ON BEHALF OF THE BOARD
"Adrian Rothwell"
Chief Executive Officer
Further information on Lucky can be found on the Company's website at www.luckyminerals.com and at www.sedar.com, or by contacting Adrian Rothwell, President and CEO, by email at investors@luckyminerals.com or by telephone at (866) 924 6484.
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.
Cautionary Statement Regarding Adjacent Properties and Forward-Looking Information
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters. This list is not exhaustive of the factors that may affect the Company's forward-looking information. Important factors that could cause actual results to differ materially from the Company's expectations also include risks detailed from time to time in the filings made by the Company with securities regulators.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.
SOURCE: Lucky Minerals Inc.
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