Copper Reef Sells its Morgan Zinc Property to Rockcliff
November 22, 2016
Flin Flon MB -- November 21, 2016 -- Copper Reef Mining Corporation ("Copper Reef")(CSE: CZC) ) has agreed to sell the Morgan Lake, Woosey Lake and Cook properties (collectively called the Morgan property) in the Snow Lake mining camp to Rockcliff Copper Corporation ("Rockcliff " (TSX.V: RCU). The Morgan property hosts stratigraphic horizons similar to the prolific Chisel Lake Basin which contains a number of former zinc mines within 3 kilometres from the operating Lalor Mine owned by Hudbay Minerals. The Morgan property includes a high grade historic zinc-rich Volcanogenic Massive Sulphide deposit and a high grade gold-rich quartz vein system including a high grade historic zinc-rich Volcanogenic Massive Sulphide deposit. The Morgan property is strategically located nearby Hudbay's operations in the Snow Lake mining camp within the prolific Flin Flon-Snow Lake greenstone belt in Manitoba.
Rockcliff will purchase a 100% interest in the Morgan property by paying Copper Reef $100,000 in cash and 200,000 Rockcliff common shares on closing and TSX-V approval, a further $50,000 cash and 400,000 common shares within 6 months and a final 1.0 million common shares within 12 months. Copper Reef will retain: a 1% NSR of the Cook Claims, 2% NSR on the Woosey claims and a 2% NSR on the Morgan property which contains a high grade zinc deposit. Rockcliff or its assignees on a production decision will pay an advance royalty payment to Copper Reef of $1.0 million. Rockcliff at any time will have the right to purchase half the NSR for $1.0 million and will retain a Right of First Refusal on Copper Reef's remaining NSR. Copper Reef will have the right to have transferred to it, at Copper Reef's discretion any claim or claims from this agreement, Rockcliff or its assignees wish to abandon with a minimum of 6 months assessment credits
Copper Reef, with numerous basemetal and gold properties throughout the Flin Flon - Snow Lake and Lynn Lake Greenstone Belts of Saskatchewan and Manitoba is currently focussing on its North Star-Gold Rock group, where the company has discovered a new high grade gold vein and on its Leo Lake basemetal group in the main Flin Flon camp adjacent to Callinex's recent high grade Pine Bay zinc discovery on which Copper Reef has a royalty. Copper Reef feels that Rockcliff with its experienced team, capital and focus can bring the Morgan project group forward as they concentrate their efforts in the Snow Lake Region. As a future Rockcliff shareholder, Copper Reef wishes them great success in all their enterprises which are already significant.
Part of Copper Reef's business model, aside from focusing on discovery of an economic deposit, is of a project generator by acquiring key assets, accretively advancing them to the point that other companies are attracted to the mineral potential and wish to acquire an interest in the property. For this Copper Reef receive: payments, significant shares and keeps a royalty, while mitigating the high cost of discovery and predevelopment by having others share in the risk. Copper Reef currently has royalties on over 20 properties.
Copper Reef also wishes to announce it has been awarded a $106,000 Mineral Exploration Assistance Grant from the Manitoba Government for exploration work on its North Star-Gold Project.
For further information, please contact:
Copper Reef Mining Corporation
Stephen Masson M.Sc., P.Geo
President & CEO
Cell: (204) 687-3500
ABOUT COPPER REEF MINING CORPORATION
Copper Reef is a Canadian junior mineral exploration company with a specific focus on mineral properties in northwest Manitoba and northeast Saskatchewan, Canada. All of the Issuer's properties are currently at the exploration stage. The Issuer has no long-term debt and has assembled a large portfolio of base metal and precious metal prospects, including strategic locations in the Provinces of Manitoba and Saskatchewan.
No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.