Corporate Update, Drilling Update & Board Changes

RNS Number : 4556N

Empire Metals Limited

01 February 2021

 

Empire Metals Limited / AIM: EEE / Sector: Natural Resources

1 February 2021

Empire Metals Limited ('Empire' or the 'Company')

Corporate Update, Eclipse Gold Project Drilling Programme Update,

& Board Changes

Empire Metals Limited, the AIM-quoted exploration and resource development company, is pleased to provide an update on specific strategic initiatives by the Company, along with an update on the progress of drilling at the Eclipse Gold Project, located 55km north-east of Kalgoorlie, Western Australia ('Eclipse' or the 'Project'). 

Strategic Focus and Eclipse Gold Project Update

Empire Metals' primary strategic focus in 2021 is the development of gold mining interests in Western Australia, including building on the continued success at Eclipse and continuing active discussions with a number of parties regarding potential acquisitions to further strengthen the Company's portfolio.

The second phase of drilling at Empire's 75% held Eclipse Gold Project is now well advanced, with approximately 3,800m of the now 4,400m Reverse Circulation programme drilled in January 2021.  The drilling has intercepted a number of wide quartz veins in areas beyond and below the Eclipse old workings, and assays are awaiting laboratory analysis to determine the degree of mineralisation. Assays for two holes have been received to date:

· Drillhole ECRC21_003 intersected 8m @ 2.83 g/t Au, from 118m, and

· Drillhole ECRC21_004 intersected 3m @ 2.60 g/t Au from 134m.

Drillhole ECRC21_004 deviated from the planned trajectory, but hole ECRC21_003 confirmed the extension of the main mineralised structure at depth, further to the north-west.

Sale of Bolnisi Copper and Gold Project in Georgia

As announced on 26 October 2020, Empire has concluded a definitive and binding Sale and Purchase Agreement (subject to certain conditions) for the sale of the Company's Georgian assets to Candelaria Mining Corp. (TSX.V: CAND) ("Candelaria") for an all-equity total consideration of 7 million Canadian Dollars ('CAD').  This offer remains in place, however it is subject to a right of first refusal ('ROFR') by the Company's joint venture partners in Georgia, Caucasian Mining Group ('CMG'). Whilst CMG has indicated an interest in exercising its right, it has yet to provide Empire with an acceptance of the offer which would give the Company confidence that it will receive the full consideration offered by Candelaria as required under the shareholders agreement. Empire continues to seek a resolution to the situation which would offer the best value to Empire shareholders.

Munni Munni

As described above, the Company's strategy is now firmly focussed on the development of Eclipse as well as the acquisition of further projects that complement this asset. As a result, the Company has decided not to extend the agreement to acquire the Munni Munni palladium project (refer RNS dated 20 July 2020). This agreement therefore lapsed as at 31 January 2021.

Board and Management Changes

As part of the Company's strategy to continue to focus on Western Australia, Mr. Mike Struthers, CEO of Empire, will step down as CEO with immediate effect. Mr Struthers will continue as a Non-Executive Director of the Company as well as being engaged as a Technical Consultant. In this capacity he will continue to strive for a solution in the Company's best interests in Georgia, and continue to provide technical guidance on the development of the Company's projects across its portfolio.  Mr. Struthers will take up the position of CEO of Candelaria Mining with immediate effect. Also, Non-Executive Director David Ajemian has resigned from the Empire board effective 31 January 2021.

In support of the new strategic direction the Company is also seeking to appoint a suitably experienced replacement CEO to lead the Company through its next phase of growth.

Mike Struthers, CEO, said: "Our continued success at Eclipse in confirming extensions to the mineralisation, and the additional opportunities being presented to us to expand our gold project interests in Western Australia, underscores the merits of the Company's new strategic focus. Empire is in a far better position now than this time last year, and we now have a good platform from which to continue growing the Company. The joint venture and negotiations relating to CMG's ROFR are ongoing and the Candelaria offer remains available. The political situation in Georgia is currently very dynamic, and we will continue to strive for a positive outcome for the Company in Georgia. We look forward to providing further updates on our efforts at Eclipse and on other fronts in due course."

Neil O'Brien, Chairman, said: "On behalf of the Board I'd like to thank Mike for all his efforts in leading the Company through some challenging times with such focused commitment and then into an exciting new project in one of the world's premier gold districts in Western Australia.  We look forward to Mike's continued significant involvement in obtaining a satisfactory outcome in Georgia and technical input on the development of our successful Eclipse Project.

"I also would like to thank David for his contributions to the Board over the past year and wish him well in all of his future endeavours."

Competent Person Statement

The information in this announcement that relates to drilling results is based on information reviewed by Mr. Mike Struthers, who is a Member of the Institute of Mining, Metallurgy and Materials (IOM3), a Chartered Engineer with the IOM3, and a Member of the Australian Institute of Mining and Metallurgy.  Mr. Struthers is an employee of Empire Metals Ltd.  He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and as a qualified person as defined in the Note for Mining and Oil & Gas Companies which form part of the AIM Rules for Companies.  Mike Struthers has reviewed this announcement and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

For further information please visit www.empiremetals.co.uk  or contact:

Mike Struthers	Empire Metals Ltd	Company	Tel: [phone]
Greg Kuenzel	Empire Metals Ltd	Company	Tel: [phone]
Ewan Leggat	S. P. Angel Corporate Finance LLP	Nomad & Broker	Tel: [phone]
Adam Cowl	S. P. Angel Corporate Finance LLP	Nomad & Broker	Tel: [phone]
Damon Heath	Shard Capital Partners LLP	Joint Broker	Tel: [phone]
Susie Geliher	St Brides Partners Ltd	PR	Tel: [phone]
Beth Melluish	St Brides Partners Ltd	PR	Tel: [phone]

About Empire Metals Limited

Empire Metals' primary focus is on the Eclipse Gold Project in Western Australia which produced 954 tonnes @ 24.6 g/t Au for 754.25 oz Au from the Eclipse shaft which operated up to 1910.  In addition to the known mineralisation at and surrounding the Eclipse old workings, recent geophysics and geochemistry work has highlighted further potential mineralisation at two additional targets north-west of Eclipse, the Houdini and Easy prospects.

The Company also has a 50% joint venture in Georgia which covers an area of over 860 sq km and has a 30-year mining licence.  The joint venture covers a variety of targets and projects ranging from greenfield exploration / target definition phase through intermediate target-testing phases to more advanced projects including Kvemo Bolnisi East which is due to advance to Feasibility Study.

The Board continues to evaluate opportunities through which to realise the value of its wider portfolio and reviews further assets which meet the Company's investment criteria.

 

END

 

 

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