VANCOUVER, Feb. 11, 2020 /CNW/ - Trilogy Metals Inc.
(TSX/NYSE American: TMQ) ("Trilogy" or the "Company")
is pleased to announce the completion of the formation of a 50/50
joint venture with South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY)
("South32"). The joint venture company is named Ambler Metals
LLC ("Ambler Metals").
Joint Venture Structure
As part of the formation of the joint venture, Trilogy
contributed all of its assets associated with the 172,675-hectare
Upper Kobuk Mineral Projects ("UKMP"), including the Arctic and
Bornite projects, while South32 contributed US$145 million, resulting in each party owning a
50% interest in Ambler Metals. The funds will be used to advance
the Arctic and Bornite projects, along with exploration in the
Ambler mining district.
Ambler Metals is an independently operated company controlled by
Trilogy and South32 through a four member Board of Directors.
Trilogy has appointed James (Jim)
Gowans, Interim President and Chief Executive Officer and a
Director of Trilogy and Kalidas Madhavpeddi, a Director of Trilogy,
to the Ambler Metals Board. South32 has appointed Simon Collins, Chief Development Officer of
South32 and Pat Risner, President of
South32's Hermosa Project, to the Ambler Metals Board. The
current ownership structure of Ambler Metals is set forth
below.
Ambler Metals Board Members
The joint venture is controlled by an experienced team of
respected and talented individuals. Messers Collins, Gowans,
Madhavpeddi and Risner each have extensive careers in the mining
industry and collectively, they have worked all over the world and
on various commodities.
Simon Collins: Mr. Collins
is the Chief Development Officer of South32 based in Vancouver. Prior to this role, Mr. Collins was
Head of Corporate Development of South32. He brings over 25
years' experience in the resources industry, working in senior
leadership and business development roles. More information about
Mr. Collins is available at www.south32.net.
Jim Gowans: Mr. Gowans is
currently Interim President and Chief Executive Officer of Trilogy.
Mr. Gowans has experience in Alaska, having worked for Cominco Limited
where he oversaw the completion of a feasibility study and the
subsequent design and construction of the Red Dog Mine. Mr. Gowans
then operated the Red Dog Mine for three years following its
commissioning. More information about Mr. Gowans is available at
www.trilogymetals.com.
Kalidas Madhavpeddi: Mr. Madhavpeddi has an extensive
career in the mining industry spanning over 30 years including
Chief Executive Officer of CMOC International and Senior Vice
President of Phelps Dodge Corp. (now Freeport McMoran). More
information about Mr. Madhavpeddi is available at
www.trilogymetals.com.
Pat Risner: Mr. Risner is
the President of South32's Hermosa Project located in Southern Arizona. He is an experienced mining
operator, having worked in technical, planning and operational
roles in both the United States
and Australia. With strong
leadership experience in mining health, safety, and environment, he
is regarded as an industry expert in complex project planning and
development. More information about Mr. Risner is available at
www.south32.net.
Ambler Metals LLC Management
To ensure a successful startup of the joint venture, management
from Trilogy and South32 will take on interim roles. Darryl Steane, South32's Business Development
Manager will take on the duties as Interim President of Ambler
Metals; Elaine Sanders, Trilogy's
Chief Financial Officer will take on the duties as Interim Vice
President Finance of Ambler Metals; and Robert (Bob) Jacko, Trilogy's Senior Vice
President Operations will take on duties as Interim Vice President
Operations of Ambler Metals. The technical team of Trilogy, who
have been operating the UKMP in northwest Alaska, will be transitioning to Ambler
Metals. The team has been busy preparing programs to advance
development and exploration of the assets. The Company anticipates
communicating more details, including the 2020 work programs and
budgets later this month.
Although the interim management team of Ambler Metals is located
in Canada and the United States, it is anticipated that the
permanent management of the joint venture will be based out of
Alaska.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation including the United States Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, included herein, including,
without limitation, the use of proceeds from South32's subscription
payment, the successful startup of Ambler Metals, the timing of the
2020 work programs and budgets and the anticipated location of
Ambler Metals' permanent management are forward-looking statements.
Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible", and similar
expressions, or statements that events, conditions, or results
"will", "may", "could", or "should" occur or be achieved.
Forward-looking statements involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from
the Company's expectations include the uncertainties involving the
startup of Ambler Metals' success of exploration, and other
risks and uncertainties disclosed in the Company's Annual Report on
Form 10-K for the year ended November 30,
2018 filed with Canadian securities regulatory authorities
and with the United States Securities and Exchange Commission and
in other Company reports and documents filed with applicable
securities regulatory authorities from time to time. The Company's
forward-looking statements reflect the beliefs, opinions and
projections on the date the statements are made. The Company
assumes no obligation to update the forward-looking statements or
beliefs, opinions, projections, or other factors, should they
change, except as required by law.
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SOURCE Trilogy Metals Inc.