Demesne Resources Ltd. Completes First Payment Under Option Agreement to Acquire Past-Producing Tungsten IMA Mine Project in Idaho, USA
- NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES –
●Demesne completes first payment on Option Agreement to acquire the IMA Mine Property
●Definitive Option Agreement was announced November 6, 2024
Vancouver, BC, Nov. 29, 2024 (GLOBE NEWSWIRE) -- Demesne Resources Ltd. (CSE:DEME) (OTCQB:DEMRF)(“Demesne” or the “Company”) announces that, further to its press release dated November 6, 2024, it has completed the first payment to IMA-1, LLC (the “Optionor”) under the option agreement dated November 5, 2024 (the “Option Agreement”), pursuant to which the Company can acquire a 100% interest in and to the IMA Mine Project located in Idaho, United States (the “IMA Mine Property”).
The first payment under the Option Agreement consisted of a cash payment of US$100,000 to the Optionor.
Under the terms of the Option Agreement, the Company can acquire a 100% interest in the IMA Mine Property, subject to a 2% royalty in favour of the Optionor, by making cash payments to the Optionor in the aggregate amount of US$5,800,000 (inclusive of the first payment of US$100,000) in stages over an eight-year period. For more information concerning the Option Agreement and the IMA Mine Property, please refer to the Company 's press release dated November 5, 2024.
The IMA Mine is a past producing underground tungsten mine situated on 22 patented claims located in East Central, Idaho. With China controlling an estimated 80%+ of global tungsten extraction and processing,1 and no domestic tungsten producers in the U.S., China’s recently announced tungsten export restriction plans underscore the need for a reliable, domestic supply of defense critical metals for America.
Demesne 's CEO, Murray Nye, commented: "Completing the first payment under the Option Agreement to acquire the IMA Mine Property is a major milestone for Demesne and our shareholders. The IMA Mine Property is expected to be a key portfolio asset, enhancing our ability to build on the mine’s past tungsten production and benefit from the capital that previous exploration companies invested to advance the IMA Mine Project. We are also fortunate that the asset is on patented ground and readily permittable. With the first payment under the Option Agreement satisfied, we can now focus on executing our potential next steps: verifying IMA’s historical resources, identifying additional mineralization, and driving toward a mine restart.”
ABOUT DEMESNE RESOURCES LTD.
Demesne Resources Ltd. is a British Columbia based company involved in the acquisition and exploration of magnetite mineral properties. The Company 's Star Project consists of five contiguous mineral titles covering an area of approximately 4,615.75 hectares located in the Skeena Mining Division, British Columbia, Canada. The Company has entered into an option agreement pursuant to which it is entitled to earn an undivided 100% interest in the Star Project. Demesne has also entered into an option agreement, pursuant to which it can acquire a 100% interest (subject to a 2% royalty) in and to the IMA Mine Project, a past producing underground tungsten mine situated on 22 patented claims located in East Central, Idaho, United States.
ON BEHALF OF THE BOARD OF DIRECTORS:
Murray Nye
CEO
1055 West Georgia Street, Suite 1500
Vancouver, BC V6E 0B6
Canada
For further information, please contact:
Murray Nye, CEO
Email: ir@demesneresources.com
Phone: +1 (416) 300-7398
CSE:DEME
OTCQB:DEMRF
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The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release and has neither approved nor disapproved the contents of this press release.
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Forward looking statements in this news release include statements respecting: (i) the IMA Mine Project and the mineral prospects thereon, (ii) the Company 's performance of its obligations under the Option Agreement, and the exercise of the option thereunder, and (iii) the Company 's planned activities on the IMA Mine Project. Factors that could cause the actual results to differ materially from those in forward-looking statements include the receipt of regulatory approvals, market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management 's beliefs, estimates or opinions, or other factors, should change.
Statements concerning historical exploration and production on the property have been obtained through both public and private sources, and are believed to be substantially factual and relevant in that they demonstrate the tenor of exploration targets on the property. These historical resource estimates pre-date the implementation of NI 43-101 and do not use categories stipulated by CIM. Prior operators assigned confidence categories which differ from those stipulated by CIM, as they may not have demonstrated economic viability. The estimates should not be relied upon until they have been verified. Neither Demesne Resources, nor its Qualified Person, has not done sufficient work to classify the historical estimates as current mineral resources or to verify historical information regarding past production or exploration. Demesne Resources is not treating the historical estimates as current mineral resources or mineral reserves. This information should not be relied upon until it has been verified.
Technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI-43-101”). Austin Zinsser, P.G., SME-RM, Vice President, Exploration for the Company, and a Qualified Person as defined by NI-43-101, has reviewed and approved the scientific and technical information in this Presentation.
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1https://asia.nikkei.com/Spotlight/Supply-Chain/China-to-tighten-export-curbs-on-critical-metals-ahead-of-Trump-s-return
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