Prairie Mining Limited (Prairie or Company) is pleased to advise that the Company has entered into an Earn-in Agreement (EIA) with Greenfields Exploration Ltd (GEX) to acquire an interest of up to 80% in the Arctic Rift Copper project (ARC or Project) in Greenland.
· Significant, large-scale project ( 5,774km2 license area) with historical exploration results indicative of an extensive mineral system with potential to host world-class copper deposits
· The ARC mineral system is known to be prospective for basalt, fault, and sedimentary rock-hosted copper mineralisation however, it remains virtually unexplored , giving the Company a first mover advantage in a major new metallogenic province
· Historical field programs identified widespread copper-silver occurrences at surface:
o geochemical sampling found that 80% of stream sediment samples contain native copper
o native copper is found in situ or as float, with individual clasts of native copper weighing up to 1 kg+
o high grade copper sulphides, grading up to 2.15% Cu and 35.5g/t Ag over 4.5m true width, are known from trench sampling of fault zones within sediments
o assay results from individual samples are much higher grade, including:
- 53.8% Cu and 2,480g/t Ag
- 20.7% Cu and 488g/t Ag
- 12.5% Cu and 385g/t Ag
- 9.0% Cu and 112 g/t Ag
- 7.9% Cu and 53 g/t Ag
- 5.3% Cu and 112 g/t Ag
- 5.0% Cu and 304 g/t Ag
· 4.0% Cu and 82 g/t Ag High priority target covering ~640 km2 already identified with near-term discovery potential ( Minik Anomaly ) which has the highest copper grades that are proximal to a coincident gravity, conductivity and magnetic anomaly in the north-eastern portion of ARC
· Greenland is a mining-friendly jurisdiction with strong Government support for expanding its mining industry, simple laws and regulations, and a competitive fiscal regime
· Greenland is increasingly recognised as one of the last great mineral resource frontiers having recently attracted interest from Rio Tinto, Anglo American, DeBeers, Glencore, Trafigura, and IGO, as well as KoBold Metals who have joint ventured with Bluejay Mining to explore in Greenland for critical materials used in EVs. KoBold is backed by Microsoft co-founder Bill Gates, Bloomberg founder Michael Bloomberg, Amazon founder Jeff Bezos, and Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates
· Strong pipeline of news flow is expected as Prairie mobilises the award-winning GEX exploration team who have extensive operating experience, including managing the Frontier Project in JV with IGO, and well-established relations with government and other key stakeholders in Greenland
· The initial exploration program creates the potential for multiple discoveries with the objective of delineating relatively highly certain, drill-ready targets and will focus on high-resolution satellite mapping, a range of geophysical surveys, widespread geochemical sampling/analysis and hand-held core drilling
The Company will earn an 80% interest in the Project by:
a) spending A$3,500,000 on the Project within three years to earn a 51% interest;
b) spending a further A$3,500,000 on the Project within four years to earn a further 19% interest (taking the total interest to 70%); and
c) spending a further A$3,000,000 on the Project within five years to earn a further 10% interest (taking the total interest to 80%).
Thereafter, the parties must contribute on a pro rata basis or be diluted. Prairie must also issue GEX 3 million shares at the commencement of the JV (escrowed for 12 months). Further terms of the EIA are outlined below in the Commercial Terms section.
Prairie’s CEO Mr Ben Stoikovich commented: “The ARC project marks Prairie’s first move into the energy metals space. Copper is integral to the energy transition, with copper consumption over the next 25 years forecast to be more than has ever been mined. The transaction gives Prairie a first-mover advantage in what we think is a prolific but virtually unexplored major new metallogenic province, in a pro-mining jurisdiction with a highly experienced Greenland exploration team utilising cutting-edge exploration to maximise the potential for discovery of a world class copper deposit from the outset”.
To provide funding for new and current activities the Company will undertake a one (1) for ten (10) pro rata non-renounceable entitlements issue at $0.25 (£0.16/€0.15/PLN0.72) per share ( Entitlements Issue ) to raise up to $5.8 million before costs.
Eligible shareholders will be entitled to acquire one (1) new ordinary share (New Share) for ten (10) ordinary shares held at the record date (5 November 2021). New Shares under the Entitlements Issue will be offered at $0.25 (£0.16/€0.15/PLN0.72) per share.
Dispute with the Polish Government
The Company will continue to defend its interests in Poland through International arbitration claims ( Claim ) against the Republic of Poland under both the Energy Charter Treaty ( ECT ) and the Australia-Poland Bilateral Investment Treaty ( BIT ) (together the Treaties ).
Prairie’s Claim alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company’s Jan Karski and Debiensko mines in Poland which has effectively deprived Prairie of the entire value of its previous investments in Poland.
For further information, please contact:
Prairie Mining Limited
Tel: +44 207 478 3900
Ben Stoikovich, Chief Executive Officer
Sapan Ghai, Head of Corporate Development
Kazimierz Chojna, Commercial Officer
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