Stakeholder Announces Blue Quartzite Sales in Brazil
Toronto, Ontario--(Newsfile Corp. - November 18, 2020) - Stakeholder Gold Corporation (TSXV: SRC) ("Stakeholder" or the "Company") is pleased to announce the first sales of exotic blue quartzite blocks from its wholly owned subsidiary Victoria Mining Corporation ("VMC"). VMC's exotic blue quartzite quarry is located in the Municipality of Dom Joaquim in the State of Minas Gerais, Brazil. Blue quartzite is quarried for export from Brazil's unique stone quarry operations to the burgeoning, high-end, refined building materials markets of Europe, Asia and North America.
The first three blocks of the Company's exotic blue quartzite material, comprising 20 cubic meters, have been produced and sold. The production contractor is engaged to produce at an all-in cost of $300 USD per cubic meter. The blocks have been sold at prices ranging from $1,600 USD to $2,000 USD per cubic meter. Multiple buyers have expressed interest in VMC's exotic blue quartzite blocks, and the Company expects to be able to develop production from several operating pits across its 100% owned project area.
"Interest in Brazil's exotic blue quartzite material is robust, and supply is limited. We are excited to have produced and sold the first blocks from our quarry and expect to be able to expand production of this high-margin material to a rate of 150 cubic meters per month early in 2021," stated Marcus Chase, President of VMC.
The Company has issued 500,000 options at a strike price of $0.40 cents to Marcus Chase who is President of VMC and a Director of Stakeholder Gold Corporation. The options have a three-year term and are subject to vesting provisions, such that the options vest pursuant to a quarterly gross revenue at VMC operations in Brazil that is in excess of $400,000 CAD ($1.6M CAD annualized).
"VMC's exotic blue quartzite operation has completed first block sales. This is the important milestone we were looking for in making Stakeholder cash flow positive. Cash flow will permit us to control and limit treasury share issuance as we unlock shareholder value from our Ballarat Gold Project exploration assets located in the heart of the White Gold District of the Yukon Territory, and as we expand on the revenue generating opportunities available to us in Brazil," stated Christopher Berlet, President and CEO of Stakeholder.
The Company also announces extension of the exercise date for 250,000 (2,000,000 pre-consolidation) warrants that were issued on December 21st, 2018 and have an expiry date of December 21st, 2020. The Company intends to extend the expiry date of these warrants to December 21st, 2021. The warrant exercise price shall remain unchanged at $0.80 ($0.10 pre-consolidation) and no other provisions of the warrants will be changed.
Final approval for the options issuance, and for the warrant expiry date amendment, is subject to acceptance by the TSX Venture Exchange.
For further information please contact:
Stakeholder Gold Corporation
Telephone: (416) 525 - 6869
[email protected]
Forward Looking Information
This news release contains forward-looking information. All information, other than information of historical fact, constitute "forward-looking statements" and includes any information that addresses activities, events or developments that the Corporation believes, expects or anticipates will or may occur in the future including the Corporation's strategy, plans or future financial or operating performance.
When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward- looking information. The forward-looking information is based on current expectations and applies only as of the date on which they were made. The factors that could cause actual results to differ materially from those indicated in such forward-looking information include, but are not limited to, the ability of the Corporation to fund the exploration expenditures required under the Agreement. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in the Corporation's annual financial statements, MD&A and other publicly filed documents.
The Corporation cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information. Except as required by law, the Corporation does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/68419
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