Beaver-Lynx Project – a Class 1 Nickel Project in Tier 1 Jurisdiction
Application to Extend Warrants
Vancouver, British Columbia, January 13, 2020 – Inomin Mines Inc. (TSX.V: MINE) (“Inomin” or the “Company”) reports it has renewed its strategic alliance with Turnagain Resources Inc. to co-market the companies’ adjacent Fleetwood and Seneca zinc-copper-silver-gold properties as a combined project named Fleetwood-Seneca.
Together the Fleetwood and Seneca properties are a considerably more attractive exploration and development project as the properties consolidate a significant Volcanogenic Massive Sulphide (VMS) district in southwestern British Columbia, 90 kilometres east of Vancouver.
Any consideration received from a third-party deal, such as an investment, joint venture, or the sale of the Fleetwood-Seneca project, is to be divided equally between Inomin and Turnagain. The new strategic alliance agreement was entered into December 21, 2019.
Fleetwood-Seneca hosts the Seneca zinc-copper-silver-gold deposit, the partially-delineated Fleetwood, 33 and Vent zones, as well as several priority exploration targets within a 6 kilometre by 2 kilometre mineral belt.
The Fleetwood-Seneca project is located within a northwest trending volcanic belt hosting extensive zinc-copper-silver-gold rich VMS mineralization. Exploration in the belt has discovered four Kuroko-style mineral zones: Fleetwood, 33, Vent, and the Seneca deposit. For a description of these zones, refer to Inomin’s January 19, 2019 news release.
Drilling at Fleetwood-Seneca has encountered several significant intersections that illustrate the high-grade, polymetallic nature of portions of the massive sulphide mineralization including the following:
|DDH-71-6||Massive||9.15%||1.01%||0.01%||84.60 g/t||2.82 g/t||7.30 m|
|DDH-74-31||Massive||11.28%||0.64%||0.66%||125.10 g/t||0.90 g/t||5.00 m|
|DDH-83-6||Massive||17.70%||5.11%||0.04%||144.30 g/t||6.96 g/t||1.30 m|
|DDH-91-16||Massive||5.56%||0.38%||0.37%||162.00 g/t||2.37 g/t||1.10 m|
|DDH-91-10||Massive||13.77%||0.84%||0.42%||28.90 g/t||0.65 g/t||1.35 m|
|DDH-91-18||Stockwork||5.74%||0.79%||0.10%||7.50 g/t||0.07 g/t||8.24 m|
|DDH-85-09||Stockwork||3.29%||0.50%||0.11%||13.10 g/t||0.12 g/t||12.50 m|
|DDH-85-12||Stockwork||13.77%||0.84%||0.42%||28.90 g/t||0.65 g/t||9.60 m|
|DDH-92-33||Massive||23.30%||1.83%||1.71%||133.00 g/t||2.33 g/t||3.20 m|
Note although exploration was performed by reputable companies, this exploration was not carried out under the supervision of a qualified person, nor has a qualified person verified the data. The only relevance herein is strictly as geological information.
For further information on the Fleetwood-Seneca project visit the Company’s website: www.inominmines.com.
Beaver-Lynx Nickel Project
The Company recently increased the size of its Beaver-Lynx nickel project to approximately 20,000 hectares through staking and the buyout of eight properties (claims) held by third-parties. Exploration, including drilling at Beaver and rock sampling at Lynx, indicates the properties could host large, bulk-tonnage, sulphide nickel deposits with credits for cobalt and other minerals.
Given Beaver-Lynx is highly prospective for large, class 1 nickel deposits – and is located in a tier one jurisdiction with excellent infrastructure – the project would be of interest to nickel producers, as well as manufacturers of sulphide nickel for the rapidly-growing electric vehicle (EV) battery market.
Inomin owns a 100% interest in the Beaver-Lynx nickel project with no royalties. Further Information on the project is available at www.inominmines.com.
Inomin intends to amend the terms of 7,403,459 outstanding warrants of the Company (the “Warrants”) that are set to expire on January 30, 2020.
7,903,459 warrants were originally issued on January 30, 2017 as part of the units issued under a private placement completed by the Company in January 2017 and were scheduled to expire on January 30, 2019. On December 7, 2018, the Company made an application to the TSX Venture Exchange (the “TSXV”) to extend the expiry date for the Warrants by one year to January 30, 2020. The Company now wishes to make an application to the TSXV to extend the expiry date for the Warrants by two years to January 30, 2022.
The exercise price of the Warrants will remain at $0.10 per Warrant. Each whole Warrant, when exercised, will be exchangeable for one common share of the Company.
As previously amended, the Warrants will also have an acceleration provision which will allow Inomin to accelerate the expiry date for the Warrants to a date that is not less than twenty (20) business days from the date Notice is given, if the closing price of the common shares of the Company on the TSXV is equal to or greater than $0.25 for a period of ten (10) consecutive trading days.
Since the original issuance of the Warrants, 500,000 warrants have been exercised. The warrant extension and amendment is subject to the approval of the TSXV.
About Inomin Mines
Inomin Mines is engaged in the identification, exploration and development of advanced mineral properties. The Company holds a 100% interest in the Beaver-Lynx sulphide nickel project in south-central British Columbia, and the Fleetwood zinc-copper VMS property in southwestern British Columbia. Inomin also holds 100% of the King’s Point gold-copper-zinc project in Newfoundland under option to Maritime Resources Corp. (TSX.V MAE). Inomin trades on the TSX Venture Exchange under the symbol MINE. For more information visit www.inominmines.com and follow us on Twitter @InominMines.
Inomin Director L. John Peters, P.Geo, a qualified person as defined by NI 43-101, has reviewed and approved the technical information in this news release.
On behalf of the board of Inomin Mines:
Inomin Mines Inc. For more information contact:
Per: “John Gomez” John Gomez
President and CEO Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements in this news release, other than statements of historical facts, including statements relating to proposed amendments to the Warrants are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that the proposed Warrant amendments will receive the requisite TSXV approval. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, the proposed Warrant amendments will not receive the requisite TSXV approval. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for their purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.