Green Swan Capital Corp. Expands Portfolio
21.02.2017 | Accesswire
BURLINGTON, February 21, 2017 - Green Swan Capital Corp. (TSX-V: GSW) has added to its portfolio of low cost, highly prospective mining assets in high quality mining jurisdictions. This acquisition consists of 33 mining claim units contained with 4 claim blocks in Otto Township, Larder Lake Mining Division, in Ontario (the "Otto Assets").The Otto Assets lie roughly eight kilometres southwest of Kirkland Lake and proximate to the former producing Swastika Mine, Ontario's first producing gold mine (1907). Infrastructure is readily available. The Otto Assets can be directly accessed off the TransCanada Highway through the town of Swastika.
Green Swan's CEO, Peter M. Clausi, said, "Our team took an undervalued forgotten cobalt/gold asset in Sudbury and created a great real shareholder value from it. We intend to do the same with the Otto Assets."
The most recent work on the Otto Assets was a soil geochemistry report in 2012. Gold, palladium, copper, zinc, nickel, and lead values were returned. Page 11 of the report concluded: "Further prospecting and geochemical surveys to the northeast and a further extension along trend may be warranted. It appears that average background levels increased to the east, and several anomalies occurred at the northeast boundary of the sampling area." (MNDM Report, Soil Geochemistry and Prospecting on Claim Numbers: 4246905, 4250913, 4251194; Otto Township; Larder Lake Mining Division. L.Currah, 2012.)
Green Swan has not performed any work on the Otto Assets, which have been explored by third parties since 1975. Historic work has included prospecting, line cutting, limited diamond drilling, VLF and magnetic surveys, mapping, trenching, and soil sampling. Some but not all of the results from third party work are available to Green Swan. Green Swan cannot speak to the accuracy or thoroughness of historic work without further research and analysis.
Green Swan purchased the Otto Assets from an arm's length prior owner who encountered challenges advancing exploration on them. One of the difficulties was an inability to enter into economic exploration agreements with local communities, including First Nations. That prior owner had applied for a permit to drill from 11 to 20 pads, conduct mechanical excavation, and carry out other mining-related activities, which permit has been stalled for some time in the Ontario Ministry of Northern Development and Mining. The Otto Assets are on "Special Status" pending the resolution of the permit application, but in Green Swan's opinion, it was highly unlikely the former owner would have been able to successfully advance its permit.
Green Swan's management has much experience in dealing with the Ontario permitting process, and believes it can successfully advance the permit process with local communities, First Nations and MNDM. Green Swan is unable to state how long this process will take or what resources will be needed. However, as with its Sudbury cobalt-gold asset, Green Swan has demonstrated an ability to source and acquire lower visibility mining assets that can generate significant shareholder value.
The consideration for the acquisition is the granting of a 10-year Net Smelter Returns Royalty, at 3% for the first 200,000 ounces of gold and 2% thereafter. During the term of the Net Smelter Returns Royalty, if Green Swan files a NI43-101 compliant resource estimate of at least one million ounces of gold grading at least 2 grams of gold per tonne, Green Swan will at that time immediately owe the vendor a one-time payment of USD$250,000.
This acquisition is an Exempt Transaction and stock exchange approval was not required.
Green Swan intends to continue acquiring highly prospective assets in good mining jurisdictions, and is focusing on cobalt acquisitions.
About Green Swan Capital Corp.
Green Swan Capital Corp. is a Canadian mineral exploration company with a proven leadership team. Green Swan is well-poised to further deliver real value to its shareholders.
On Behalf of the Board of Directors, GREEN SWAN CAPITAL CORP.
"Peter M. Clausi"
Peter M. Clausi, CEO and Director
For Further Information:
Green Swan Capital Corp.
Peter M. Clausi
pclausi@greenswancapital.com
1 905-681-1925
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