21C Metals Inc. enters into agreement to acquire East Bull palladium property in Sudbury Mining Division
21C Metals Inc. formerly Declan Cobalt Inc., announced that its wholly-owned subsidiary, East Bull Resources Inc. has entered into an option agreement with Pavey Ark Minerals Inc. to acquire a 100% interest in the East Bull palladium property in the Sudbury Mining Division.
"We are pleased to have closed this transaction to acquire a palladium resource located within 70 kilometres of Sudbury, Ontario," said Wayne Tisdale, President and CEO of 21C Metals.
"By pursuing the recommended work program referenced in the 43-101, this resource appears to have excellent potential to add palladium ounces to the current estimate," Tisdale added.
" At 21C Metals, we are actively pursuing the metals required for current palladium production demand while also preparing for the ever-increasing demand for cobalt and copper. We call our strategy Metals for Today and Tomorrow," Tisdale said.
The price of palladium has recently increased such that it now exceeds that of gold. Palladium is the principal element used in internal combustion engine catalytic converters.
Deposits are rare, found generally in South Africa, Russia, Montana and the Sudbury Basin in Ontario, where the East Bull Property is located. High demand for palladium is expected to continue due to many jurisdictions (including China) implementing more stringent domestic emissions standards.
Pursuant to the agreement, and over a period of four years, should 21C Metals elect to continue, it has to spend $1,750,000 in exploration expenditures, issue $975,000 in cash payments, and issue an aggregate of 4.5 million common shares of 21C Metals to Pavey Ark.
P&E Mining Consultants Inc. of Brampton, Ontario has prepared a NI 43-101 compliant report on the Property dated April 5, 2018 (the "43-101 Report"). The NI 43-101 Report references a pit-constrained inferred resource of 11.1 million tonnes of 1.46 grams per tonne (523,000 ounces) palladium equivalent.
The NI 43-101 Report is available for review at www.paveyarkminerals.com, and will be filed on SEDAR within 180 days of this announcement. The property consists of approximately 1000 hectares covering more than 3.6 kilometres of the East Bull layered intrusion. This area consists of an inclusion bearing zone hosting palladium mineralization.
The 43-101 Report recommends an exploration program to extend and define the known mineralization. 21C Metals has not undertaken any independent detailed investigation of the information contained in NI 43-101 Report in order to verify the accuracy of the information. However, 21C Metals believes that following the recommended exploration work program will increase the current resource and help to define the extent of the palladium mineralization.
For more information on the East Bull project visit www.paveyarkminerals.com