Rider Investment Capital Corp. Announces Purchase of Mann Mine from Power Ore

Tuesday, 25. February 2020 15:00

Calgary, Alberta--(Newsfile Corp. - February 25, 2020) - Rider Investment Capital Corporation (TSXV: RDR.P) ("Rider" or the "Company") is pleased to announce that it has entered into a Letter of Intent dated February 11, 2020 (the "Agreement") to purchase the Mann Silver-Cobalt Mine from PowerOre Inc. ("Power Ore") (TSXV: PORE), a copper-focused exploration company listed on the TSX Venture Exchange. The Transaction is subject to approval of the TSX Venture Exchange and the entering into of a definitive agreement.

Rider has agreed to issue 17,857,143 shares at $0.07 per share for aggregate consideration of $1,250,000 to Power Ore in exchange for a 100% interest in the Mann Mine. The sale is a part of the Company's Qualifying Transaction requirement for full listing on the TSX Venture Exchange. The proposed Qualifying Transaction is an Arm's Length Qualifying Transaction and is not subject to shareholder approval, however an annual general and special meeting of shareholders will be convened concurrent with approval of the Qualifying Transaction by the TSX Venture Exchange to approve certain corporate changes that are part of the Agreement, including, inter alia, a name change of the Corporation. Concurrent with the Qualifying Transaction, Rider will complete a non-brokered financing, of a minimum of $700,000 at 10 cents, issuing an aggregate of a minimum of 7,000,000 shares. Proceeds of the financing will go towards a work program on the Mann Mine as well as for general working capital.

Subsequent to the closing of the deal, Rider's Board of Directors will be reconstituted and will comprise of the following individuals:

Alexander Stewart: Alex has over 40 years of experience in the practice of corporate and securities law and natural resource investments. He has been a director of numerous public companies on various exchanges including Nasdaq, AMEX, TSX and TSXV. For the last fifteen years he has focused exclusively on the mining and metals sector and has been instrumental in sourcing, funding and developing high-quality mineral assets in North and South America. In the past he was the founder, seed financier and principal behind a number of mining projects including the Cote Lake Project, acquired by IAMGOLD in 2012 for over $580m and the Eagle One polymetallic project now owned by Noront Resources. He holds a Bachelor of Arts degree from Western University, a Juris Doctor degree from the University of Toronto Law School and a Diploma, LCE, from the University of Madrid.

Stephen Stewart: Stephen has been involved in natural resource development and finance for over fifteen years. He is currently the CEO of Orefinders Resources Inc. and Power Ore Inc., both listed on the TSX Venture Exchange. He is also the Chairman of the Young Mining Professionals global group. Stephen holds a BA from the Western University, an MBA from the University of Toronto's Rotman School of Management and a M.Sc. from the University of Florida's Hough Graduate School of Business.

Gautam Narayanan: Gautam is currently the Director of Corporate Development for Orefinders Resources and Power Ore Inc. Prior to joining Orefinders and Power Ore, he was a research associate at Canaccord Genuity, covering base and precious metal equities. Gautam was previously an independent consultant focused on providing research and analysis on the general mining space, and more specifically in fertilizer commodities such as phosphate and potash. He holds a Bachelor of Science and Master of Science in Geology from the University of Toronto, and a Master of Business Administration from the Schulich School of Business at York University.

Charles Beaudry: Charles is a P. Geo with over 35 years experience in project generation, business development, exploration geochemistry and hands-on project management. Charles previously held the position of General Manager of new business opportunities with IAMGOLD Corporation from 2008 until 2009, after having spent nearly 17 years in various capacities for Noranda-Falconbridge-Xstrata, including as country manager of Brazil from 1996 to 2001 and manager of the Frieda River Project in Papua New Guinea from 2005 to 2006. He holds a Bachelors of Science in Geology from the University of Ottawa and a Masters of Geology from McGill University.

Mike Mansfield: Mike is a Vice-President, investment professional with Industrial Alliance Securities Inc. and has 20 years' experience as investment advisor specializing in the Canadian venture market working both on the private and public investors and companies. He has a track record of successfully taking public over a hundred of companies through the completion of qualifying transactions by Capital Pool Corporations and secondary financings. He graduated from the University of Calgary in 1989, articled with KPMG and obtained his CA designation in 1993 and CFA designation in 1998.

About the Mann Mine

The Mann Silver-Cobalt Mine property is located in Milner township, Ontario. The property covers 867 hectares, and is located west of Cobalt, Ontario, within the renowned Temiskaming silver area. Historical regional production is reported >570 million ounces of silver and 28 million pounds of cobalt. The Mann Mine property contains 9 historic shafts and a ramp driven to the 210-foot level. Historically, the Mann Mine produced 330,000 ounces of silver prior to 1987 (See MNDM RP175, 1978).

Work completed by previous owners include airborne and ground geophysical surveys and a 15-hole, 1,458 metre diamond drill program undertaken in the fall and winter of 2011 and 2012, with a focus on confirming silver mineralization on the property. Previous drilling on the property has yielded favourable cobalt and silver values, including 1.4 metres showing 1.12% cobalt, 29.3 metres showing 131 gpt silver and 28.7 metres showing 181 gpt silver (Table 1). The true thickness of the intersections are typically about 70 to 80% of the quoted intervals.

Table 1) Mineralized intersections on the Mann Mine Property (see CRESO News Releases published on Sedar.ca on 1-12-2011, 14-12-2011 and 4-4-2012)

Hole NumberFrom (m)To (m)Interval (m)Co Grade (%)
MN11-01111.5117.35.80.34%
    including112.9114.31.41.12%
MN11-0311.011.40.40.20%
Hole NumberFrom (m)To (m)Interval (m)Ag Grade (g/t)
MN11-0129.058.329.3131
    including37.038.01.02,320
    including52.252.70.51,210
MN11-0321.350.028.7181
    including35.941.05.1979
    including39.840.50.75,130
MN11-0227.834.36.518
    and95.0144.549.514
    including47.848.40.6141
MN12-0616.638.321.759
    including23.324.71.4695

 

Given the Mann Mine previously produced only silver, with historical workings, including stockpiles and tailings on the property potentially containing cobalt, which was at the time considered waste, a stockpile sampling program was conducted at the end of September 2018. This sampling program yielded positive results, including:

Table 2) Results from PowerOre Inc's September 2018 Stockpile Sampling Program (see Power Ore news release of 15-10-2018 on Sedar.ca)

Cobalt (%)Silver (gpt)Copper (%)Sample #
1.39>10,0000.04M95429
1.65910.026M95430
0.9491120.86M95431
0.792100.148M95432
0.779660.765M95433
0.8540.002M95434
5.724030.005M95434
0.84281M95436
0.9670.097M95437
0.927170.368M95440

 

Furthermore, a high-resolution airborne magnetic survey conducted in October 2018 to identify the structural controls associated with cobalt and silver mineralization identified high-potential drill targets on the Mann Mine (see PowerOre news release of 2-10-2018 on Sedar.ca). Magnetic lows horizontally intersect the high magnetic diabase sill, and appear to correlate with historically mined areas and our areas of known mineralization.

Numerous mineralized zones were identified, of which Zone D has been the recent area of focus. Zone D was interpreted to have high-grade silver mineralization striking east-west, at near-vertical dip, with high cobalt values associated with silver intersections. This potentially represents a new style of mineralization dominated by cobalt, instead of typical silver dominated mineralization found in Zone D. Historical work tends to indicate that the silver mineralization at the Mann Mine property is typical of that found elsewhere in the Cobalt Mining district and occurs as native silver and arsenides and sulphides of silver, cobalt and copper in quartz calcite veins that are sub-vertical and either east-west or nearly north-south. The veins are typically quite narrow but may locally expand to several metres at the intersections of fault structures. This is apparently what happened on Zone D near Shaft #5.

Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative. The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Sponsorship

A general policy of the TSXV requires that a sponsor be retained to prepare a sponsor report in ‎compliance with TSXV Policy 2.2. Rider intends to apply to the TSXV for an exemption from the ‎sponsorship requirements; however, there is no assurance that Rider will obtain such exemption.‎ [Trading in the common shares of Rider will remain halted until certain required documents have been ‎provided to the TSXV.‎]

QP Statement

The technical information contained in this news release has been reviewed and approved by Charles Beaudry, P.Geo, Director and Vice President Exploration for PowerOre Inc., who is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects." Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Power Ore is a trade name of PowerOre Inc.

About Power Ore

Power Ore is a copper exploration company incorporated under the laws of British Columbia. Power Ore is currently developing its flagship Opemiska Copper Complex, a copper-gold project in Chibougamau, Quebec. Stephen Stewart (Toronto, ON) is the CEO of Power Ore.

For further information, please contact:

Rider Investment Capital Corp.
Dave Antony
dantony@rangeenergy.ca
403-531-1710

Mann Mine Project
Gautam Narayanan
gnarayanan@powerore.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Rider Investment Capital Corp. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Rider Investment Capital Corp. Additional information identifying risks and uncertainties is contained in filings by Rider Investment Capital Corp. with Canadian securities regulators, which filings are available under Rider Investment Capital Corp. profile at www.sedar.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52717

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