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TORONTO, July 10, 2020 /CNW/ - Central Timmins
Exploration Corp. ("CTEC" or the "Company") (TSXV: CTEC)
reports that, subject to regulatory approval, it has signed a
mineral lease and option agreement with Bull Mountain Resources LLC
("BMR"), an arm's length private company, to lease a 100% interest
in the Stockade Property located in southeastern Oregon.
Stockade
The Stockade Property consists of 261 unpatented lode mining
claims that cover an area of over 6,790 acres, located in
Malheur County, Oregon
approximately 85 kilometers southeast of Burns Oregon, or 150 kilometers southwest of
Boise Idaho. The property was explored by BHP, Phelps Dodge and Placer Dome with only shallow
drill holes targeting bulk tonnage potential in the 1980s and
90s.
The principals of BMR include Perry
Durning and Frank (Bud)
Hillemeyer, who received the PDAC Thayer Lindsley
International Mineral Discoveries Award in 2010 in recognition of
their outstanding record of grassroots discoveries in Mexico, particularly the San Sebastian silver-gold mine, the
San Agustin gold mine, the
Pitarrilla silver deposit and the Camino Rojo gold discovery.
Additionally, Durning and Hillemeyer discovered the Los Gatos
silver-base-metal deposit subsequent to the Thayer Lindlsey Award.
The Company plans to complete a 43-101 property report compiling
the historical field work and drill results, as well as initiate a
systematic exploration program by completing airborne and ground
geophysical studies, in combination with further prospecting,
geochemical sampling, geologic mapping and drilling.
Mineral Lease and Option Agreement Terms
Under the terms of the mineral lease and option agreement, the
Company has the right to use the property for exploration and
mining for a minimum of 50 years provided it continues to make the
following preproduction payments: US$20,000 and 100,000 common shares in the
capital of the Company on signing the agreement (the "Effective
Date"); US$10,000 six-months after
the Effective Date; US$10,000
12-months after the Effective Date; US$15,000 18-months after the Effective Date;
US$15,000 24-months after the
Effective Date; US$25,000 30-months
after the Effective Date and every six months thereafter. The
term of the agreement may continue after 50 years provided active
mining operations are being conducted on the property. The
Company is also required to incur minimum work expenditures on the
property of US$30,000 in the first
year and a minimum of 2,000 meters of drilling in the second
year.
On achievement of production on the property, a production
royalty of 2% of net smelter returns is payable on claims owned by
BMR and 0.5% of net smelter returns is payable on third party
claims and claims acquired within the area of influence, provided
that a minimum production royalty of US$25,000 is payable quarterly. On payment
to BMR of US$10,000,000 in any
combination of pre-production payments, production royalties and
minimum royalties, the production royalty on claims owned by BMR
reduces to 1% and on third-party claims and claims acquired within
the area of influence to 0.25%.
About Central Timmins Exploration Corp.
CTEC is an early-stage Canadian junior exploration company
focused on precious metals exploration and development.
Forward Looking Information
This press release contains "forward-looking information" within
the meaning of applicable securities laws that is intended to be
covered by the safe harbours created by those laws.
"Forward-looking information" includes statements that use
forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative
thereof or other variations thereof or comparable terminology. Such
forward-looking information includes, without limitation, the
Company's expectations, strategies and plans for the Stockade
Property, including the Company's planned expenditures and
exploration activities.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made. Furthermore,
such forward-looking information involves a variety of known and
unknown risks, uncertainties and other factors which may cause the
actual plans, intentions, activities, results, performance or
achievements of the Company to be materially different from any
future plans, intentions, activities, results, performance or
achievements expressed or implied by such forward-looking
information. See "Risk Factors" in the Company's final prospectus
dated October 4, 2018 filed on SEDAR
at www.sedar.com for a discussion of these risks.
The Company cautions that there can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, investors should not
place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any
obligation to release publicly any revisions to forward-looking
information contained in this press release to reflect events or
circumstances after the date hereof.
Neither the Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Central Timmins Exploration Corp