Option Agreement on the Stateline Project

RNS Number : 3100B

Cloudbreak Discovery PLC

10 February 2022

 

10 February 2022

Follow the link to read the press release in full, including figures:

http://www.rns-pdf.londonstockexchange.com/rns/3100B_1-2022-2-10.pdf

Cloudbreak Discovery and Alianza Minerals sign option agreement with Allied Copper on the Stateline Copper Project, Colorado

Cloudbreak Discovery Plc ("Cloudbreak") (LSE: CDL) and Alianza Minerals Ltd. ("Alianza") (TSX-V" ANZ, OTCQB: TARSF) (the "Alliance") are pleased to announce the optioning of the Stateline Property ("Stateline") to Allied Copper Corp. ("Allied") (TSX-V: CPR), located in Colorado and Utah, United States, comprising 22 unpatented mining claims from local prospectors. The Stateline project is located 8 km along trend to the southeast of the operating Lisbon Valley Copper Mine.

Stateline Option Agreement Highlights:

-  Over a three-year period, Allied will incur an aggregate of CAD $3,750,000 in exploration expenditures on the property, with at least CAD $500,000 being spent prior to the first anniversary of the closing date;

-  Issue 4,250,000 common shares over a three-year period of which 500,000 are due on closing; and

-  Make an aggregate of CAD $315,000 in cash payments to the Alliance of which $40,000 has been paid and with a further $50,000 due on closing.

-  The Alliance will retain a 2% net smelter royalty which is not subject to a buy down provision

If Allied acquires additional mineral tenures within the Area of Interest (the "AOI"), it will issue the Alliance additional common shares on a sliding scale. Conversely, if the Alliance acquires mineral tenures within the AOI, it will first offer them to Allied and be compensated on that same sliding scale, should Allied choose to acquire them.

Kyler Hardy, President and CEO of Cloudbreak , reflected on Stateline, stating, "We are delighted to grow our relationship with Allied and are looking forward to lending support for their exploration efforts in the Paradox Basin. Having both Stateline and Klondike with the same partner will allow us to gain a better understanding of the geological setting and explore the regional opportunity unfolding with this partnership."

About the Stateline Project

The Stateline project is located approximately 40 kilometres southwest of Naturita, Colorado, covering the state boundary between Utah and Colorado at the southeast end of the Lisbon Valley. This property lies within the Paradox Copper Belt, which includes the producing Lisbon Valley Mining Complex ("LVMC"). There are numerous historical copper occurrences that have been identified throughout the belt, however, many of these have not been explored using modern exploration techniques.

Figure 1. Stateline Property Location and Regional Geology Plan Map

Historical surface sampling of mineralised outcrops has yielded assay results up to 1.6% copper and 1.7 grams per tonne ("g/t") silver and 0.45% copper and 2.1 g/t silver. Disseminated copper-silver mineralisation has also been identified in several outcropping sandstones in other stratigraphic positions. Both styles of mineralisation will be investigated in upcoming work programmes with the goal of refining drill targets in these units. Initial work will include detailed geological mapping, soil and rock sampling, and geophysics.

The project is road accessible year-round including those supporting access to the LVMC. The project is comprised of 22 mining claims on Federal mineral rights managed by the Bureau for Land Management. Ground covered by the current claims was at one time part of the LVMC claim package.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Qualified Person

Mr. Rory Kutluoglu P. Geo., Chief Operation Officer of the Company, is the Qualified Person ("QP") under NI 43-101 for the technical information in this news release, has verified the data disclosed and approves the technical contents contained in this news release.

-ENDS-

For additional information please contact:

Cloudbreak Discovery PLC	Tel: [phone]
	Kyler Hardy, CEO	[e-mail]
Novum Securities (Financial Adviser)	Tel: [phone]
	David Coffman / Lucy Bowden Colin Rowbury
Shard Capital Partners (Broker)	Tel: [phone] Damon Heath / Isabella Pierre
Blytheweigh (Financial PR/IR-London)	Tel: [phone]	[e-mail]
	Tim Blythe
	Megan Ray
Stellium Services (Investor Relations)	Tel: [phone]	[e-mail]
www.StelliumServices.com	Andrew Wilson
	Claire Bowden

About Cloudbreak Discovery PLC

Cloudbreak Discovery PLC, is a leading natural resource project generator, working across a wide array of mineral assets that are being developed and managed by an experienced team with a proven track record. Value accretion within the projects being developed by Cloudbreak's generative model enables a multi-asset approach to investing. Diversification within the mining sector and amongst resource classes is key to withstanding the cycles of natural resource investing.

About Alianza Minerals Ltd.

Alianza employs a hybrid business model of joint venture funding and self-funded projects to maximize opportunity for exploration success. The Company currently has gold, silver and base metal projects in Yukon Territory, British Columbia, Colorado, Nevada and Peru. Alianza currently has one project (Tim, Yukon Territory) optioned out to Coeur Mining, Inc. and is actively seeking partners on other projects. 

The Company is listed on the TSX Venture Exchange under the symbol "ANZ" and trades on the OTCQB market in the US under the symbol "TARSF".

About the Strategic Alliance

Under the terms of the Alliance, either Cloudbreak Discovery Plc or Alianza Minerals Ltd can introduce projects to the Strategic Alliance. Projects accepted into the alliance will be held 50/50 but funding of the initial acquisition and any preliminary work programs will be funded 40% by the introducing partner and 60% by the other party. Project expenditures are determined by committee, consisting of two senior management personnel from each party. Alianza is the operator of alliance projects unless the Alliance steering committee determines, on a case-by-case basis, that Cloudbreak would be a more suitable operator. The initial term of the Alliance runs for two years and may be extended for an additional two years.

 

END

 

 

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