TriMetals Mining Inc. Acquires Water Rights for Gold Springs
February 7, 2017, Vancouver, British Columbia—TriMetals Mining Inc. (TSX: TMI, OTCQX: TMIAF), (the “Company” or “TMI”), is pleased to announce that one of its subsidiary companies has acquired the rights to 1,658 acre feet of water per year through a water lease agreement which includes an option to purchase the water rights. These water rights are located in Utah within the Escalante water basin which includes all of the Gold Springs project’s lands within Utah. The Company believes that these water rights are sufficient to run a large heap-leach operation and they are in addition to the 965 acre feet of water per year which TMI has rights to within the Escalante Basin within Nevada (PR October 8, 2015). The Company believes that these valuable water resources provide assurances that this critical component for mine development will not be an issue in the future for the Gold Springs project.
Ralph Fitch, President and CEO of the Company stated “With the acquisition of these water rights we continue to de-risk the future mining of the gold and silver resources we are developing at the Gold Springs Project. The water we now have under control is sufficient to run a large-scale heap-leach mining operation and further enhances the value of our project. It has been our goal to not only develop a large economic gold resource but to address any potential issues which could hinder the future development of a large-scale mining operation. With the signing of this water agreement we have done that.”
The water lease agreement with an option to purchase continues from year to year with automatic yearly renewal of the terms for 20 years. The annual aggregate lease payment is $300,000, payable in quarterly instalments, and such payments may be offset prior to mining by subleasing the water rights. The lessor of the water rights has retained the right to have returned to it up to 150 acre feet of water from one water right should the lessor determine that it needs such water for its business requirements.
The Company has the option to purchase 1,500 of the 1,658 acre feet per year of water rights leased in the agreement and the price to exercise the option is $7,000,000. The option can be exercised at any time during the 20-year term of the lease.
To protect against inflation, starting in 2020, an annual escalation factor of 3% per year is to be applied to the lease payments and the exercise price of the option.
About TriMetals Mining Inc.
TriMetals Mining Inc. is a growth focused mineral exploration company creating value through the exploration and development of the near surface, Gold Springs gold-silver project in mining friendly Nevada and Utah in the U.S.A.
The Company’s approach to business combines the team’s track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry.
The Company’s common shares and Class B shares are listed on the Toronto Stock Exchange under the symbols “TMI” and “TMI.B” and the common shares and Class B shares also trade on the OTCQX market under the symbol “TMIAF” and “TMIBF”. Note that the Class B shares have no interest in the properties or assets of the Company other than a collective entitlement to 85% of the net cash, if any, (after deducting all costs, taxes and expenses and the third-party funder’s portion thereof) received by TMI from award or settlement in relation to the Company’s subsidiary South American Silver Limited’s arbitration proceeding against Bolivia for the expropriation of the Malku Khota project in 2012. Additional information related to TriMetals Mining Inc. is available at www.trimetalsmining.com and on SEDAR at www.sedar.com.
Certain statements contained herein constitute “forward-looking information” or “forward-looking statements” under applicable securities laws (“forward-looking statements”). Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “believe”, “will”, “continue”, “sufficient”, “assurance”, “could”, “potential”, and similar expressions. Statements as to the sufficiency of TMI’s water rights being sufficient to run a large heap-leach operations are also forward-looking statements. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations if known and unknown risks or uncertainties affect our business or if our estimates or assumptions prove inaccurate. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, risks of the mineral exploration industry which may affect the advancement of the Gold Springs project, including possible variations in mineral resources, grade, recovery rates, metal prices, capital and operating costs, and the application of taxes; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; availability of equipment and qualified personnel, failure of equipment or processes to operate as anticipated, changes in project parameters, including water requirements for operations, as plans continue to be refined; regulatory, environmental and other risks of the mining industry more fully described in the Company’s Annual Information Form and continuous disclosure documents, which are available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include: the accuracy of current resource estimates and the interpretation of drill, metallurgical testing and other exploration results; the continuing support for mining by local governments in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold Springs project; execution of the Company’s existing plans and further exploration and development programs for Gold Springs, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs.
Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Unless otherwise indicated, forward-looking statements in this press release describe the Company’s expectations as of February 7, 2017.
TriMetals Mining Inc. Contact:
President & CEO
Chief Financial Officer