Clean Air Metals Announces Payment to Rio Tinto to Maintain Escape Lake Option

THUNDER BAY, ON, Oct. 14, 2020 /CNW/ - Clean Air Metals Inc. ("Clean Air Metals" or the "Company") (TSXV: AIR) (OTCQB: CLRMF) is pleased to announce that it has paid the sum of CAD$1 Million directly to Rio Tinto Exploration Canada Inc. ("RTEC") as Vendor, pursuant to the terms of the definitive option agreement (the "Option Agreement") entered into between the Company and Benton Resources Inc. ("Benton") (TSXV: BEX) (see previous press release dated May 15, 2020). The Company acquired the Option to acquire a 100% right, title and interest in and to the Escape Lake Property (the "Escape Lake Property"), whereby Clean Air Metals agreed to pay to RTEC an aggregate of C$6 million, C$3 million of which was originally paid by Benton to RTEC on October 9, 2019.

 

In addition, pursuant to the terms of a definitive share purchase agreement dated January 6, 2020 entered into between the Company and Magma Metals Pty Ltd. ("Magma"), the Company completed the acquisition of 100% of Panoramic Resources Limited's indirect subsidiary, Panoramic PGMs (Canada) Ltd. ("Pan PGMs"), which owns the Thunder Bay North Property (the "TBN Property"). Pan PGM's is now a 100% wholly-owned subsidiary of Clean Air Metals. In consideration of the acquisition of Pan PGMs, Clean Air Metals has also agreed to pay to Magma in equal installments over a three-year period, an aggregate of C$9 million, C$4.5 million of which was paid on closing of the transaction on May 14, 2020.

 

The Escape Lake Property and the TBN Property are collectively referred to as the "TBN Project". A 20,000m drill program is underway that has confirmed and expanded the new discovery at Escape Lake that now measures approximately 200m along strike, 175m wide and averages 30m and remains open along strike in both directions (previously reported September 30, 2020).

 

Abraham Drost, P.Geo., CEO of Clean Air Metals said that "Our project represents the most significant PGE deposit located in close proximity to Impala's Lac des Isles Mine and this payment demonstrates our confidence in the Thunder Bay North Project. The platinum, palladium and copper, nickel mineralization identified in the Escape Lake conduit has the potential to add materially to the historic estimate at the Current Lake deposit."

 

About Clean Air Metals Inc.

 

Clean Air Metals' flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Clean Air Metals project hosts the Current Lake magma conduit and the Company is actively exploring at Escape Lake and a twin structure to Current Lake as previously reported on August 20, 2020 at https://cleanairmetals.ca/news-media/news-releases/clean-air-metals-announces-new-step-out-drill-resu-122506/. Executive Chairman Jim Gallagher and CEO Abraham Drost lead an experienced team of explorers, researchers and engineers who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development studies. As the former CEO of North American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.