February 6, 2017 / Vancouver, BC – NRG Metals Inc. (“NRG” or the “Company”) (TSX-V: NGZ) (OTC Pink GPOFF) (Frankfurt OGPN), announces that, further to its news release of October 21, 2016, it has completed a statutory arrangement under a plan of arrangement (the “Arrangement”) pursuant to Section 288 of the Business Corporations Act (British Columbia), and has issued the required shares of spinout Gold Port Resources Ltd. (“GPRL”) to the NRG shareholders. The Company is also pleased to provide an update on the status of the Carachi Pampa Lithium Project located in the Catamarca province of Argentina. The Company has received comments back from the TSX Venture Exchange regarding transaction documentation and will file the necessary amendments today. Upon final review, Company expects to close the transaction and return to trade.
All NRG shareholders as at the record date, November 25, 2016, received one GPRL share for each four NRG shares held at that date. The transaction did not affect the shareholdings of NRG. The Company paid $150,000 in cash and transferred certain accounts payable associated with its gold and graphite assets to GPRL. Following completion of the Arrangement, GPRL became a reporting issuer in the Provinces of British Columbia, Alberta and Ontario, and has 15,375,803 common shares issued and outstanding. The CUSIP number for the GPRL shares is 38069H100. NRG retained its working capital for its new lithium assets.
As of the Effective Date, the board of directors of GPRL are Adrian Hobkirk, Christopher P. Cherry and Allen V. Ambrose and the officers of GPRL are Adrian Hobkirk, President and CEO, Christopher P. Cherry, CFO, and Jan Urata, Secretary.
GPRL will focus on the further exploration and potential development of the Groete Gold Copper Project located in Cuyuni Mining District 4, Guyana. Work by the Company during 2012 to 2013 resulted in the completion of an independent resource estimate in January , 2013, in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), by P and E Mining Consultants (“P and E”) of Brampton, Ontario, Canada. A Pit Constrained Inferred Resource of 1.59 million Gold (“Au”) Equivalent ounces at 0.66 grams per tonne Au Equivalent, comprised of 0.59 gpt Au and 0.12% copper contained in 74.8 million tonnes was calculated by P and E. A data base of 8 diamond drill holes (1, 426 meters) completed by the Company, and the historical results of 18 diamond core holes (3,477 meters) completed by a subsidiary of Coeur Mining (1995 to 1997) were used in the calculation. Four holes completed by the Company were twin holes of prior work. The project is strategically located near deep water access and infrastructure.
Subsequent to the completion of the 2013 drill program, the Company completed extensive surface exploration. As previously announced, new areas of gold mineralization were identified at surface on the project. The Company will review all work completed to date on the project, and develop a future exploration strategy.
In addition, the Company owns the L.A.B. Graphite Project located in Quebec, Canada. The L.A.B. Project is located immediately adjacent to the Emery’s Graphite and Carbon Mine, one of only two graphite produces in North America. Recent work completed by the Company has identified several targets, and the project is drill ready.
GPRL is also negotiating on several other mineral acquisitions focused in the precious metals sector. Shareholders are directed to register at the GPRL website at goldportrl.com to receive timely information. Management intends, subject to market conditions and financing, to list the common shares of GPRL on a North American stock exchange in the near future.
CARACHI PAMPA LITHIUM PROJECT CATAMARCA ARGENTINA
The Company is providing an update on the status of the acquisition of the Carachi Pampa Lithium Project located in Catamarca Province, Argentina (the “Project”). The Company has received comments back from the TSX Venture Exchange (the “Exchange”) regarding documents submitted, including a NI 43-101 Technical Report entitled, “Technical Report on the Carachi Pampa Lithium Project, Catamarca Province, Argentina”, completed by Rojas y Asociados Mining Consultants of Mendoza, Argentina. The Company is addressing the comments, and expects to file the amended report today. After acceptance by the Exchange, full details and the report will be provided along with a corporate and project update prior to the resumption of trading, which is anticipated in the very near future.
The Project, which comprises 6,387 hectares, is situated 40 kilometers south of the town of Antofagasta de la Sierra, Catamarca, at approximately 3,000 meters elevation. This region of Argentina is host to the Hombre Muerto Salar where FMC is producing approximately 20,000 tonnes of lithium carbonate equivalent per year as well as Galaxy Resources’ large development stage Sal de Vida project ( the Company cautions this may not be indicative of mineralization at the Carachi Pampa Paleo Salar, further exploration is required ). Intense exploration activity in the area by international lithium companies has resulted in the discovery of several brine lithium deposits. There is a provincial road within 10 kilometers of the Project area, and local support services are located nearby.
On Behalf of the Board of Directors
President, CEO and Director
Dr. Arthur Darryl Drummond, P.Eng. who is a member of the Association of Professional Engineers of British Columbia (Lic. # 5778), and a Qualified Person as defined in NI 43-101 has prepared, and supervised the preparation of this press release and approves the technical and scientific disclosure of the press release.
The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.
This news release contains certain “forward- looking statements” within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward- looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. The transaction described in this news release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this news release. We seek safe harbor.