Toronto, May 6, 2021 – Canadian Manganese Company Inc. (the “Company” or “CMC”), reports that following the closing of the acquisition of Maximos Metal Corp. (“Maximos”), it has appointed Matthew Allas as President and CEO, effective immediately.
In announcing the appointment, John Kearney, Chairman of Canadian Manganese stated, “We are delighted to announce the appointment of Matthew Allas as President and CEO and we look forward to working with Matthew to create a new technology metals company with an emphasis on stakeholder value creation.”
Matthew Allas commented, “I am very excited to assume this role at such a pivotal time for the Company and industry as a whole. The significant focus on reducing emissions in energy supply has driven the rapid expansion of electrification initiatives, underpinned by the expected development and growth of battery-based energy storage. I look forward to demonstrating the role CMC can play in this seismic market shift.”
Matthew has been the President and Chief Executive Officer of Maximos since 2018. For the fourteen years prior, he was an investment banker and investment professional in the natural resource industry where he advised numerous companies on growth and financing strategies.
Over the past three years under his leadership, Maximos has worked directly with companies (both public and private) and governments, developing partnerships and accumulating a portfolio of interests across commodities and jurisdictions.
Mr. Allas holds a Bachelor of Arts (Economics, Physics) degree from Mount Allison University.
CMC vision to create a new technology metals company
CMC’s vision is to create a new technology metals company with an immediate strategic focus on the advancement of CMC’s Woodstock manganese property in New Brunswick to produce high purity electrolytic manganese metal and/or high purity manganese sulphate monohydrate for the growing battery metals market.
The global evolution of electric vehicle (EV) and battery technologies combined with mounting geopolitical support provides what CMC believes is a unique opportunity to create a North American based leader in the production of battery-grade manganese
CMC plans to make application to list its shares on the Canadian Securities Exchange as soon as possible.
Appointment of new CFO – Richard Pinkerton
CMC also announces the appointment of Richard Pinkerton as Chief Financial Officer.
Mr. Pinkerton is a financial executive with over 25 years experience in public companies in the mining and financial services industries in Canada. He is currently Chief Financial Officer of Labrador Iron Mines Holdings Limited and was previously an investment banker (10 years) and chartered accountant (5 years). He graduated from Harvard University (economics) and is a member of both the Canadian Institute of Chartered Accountants and CFA Institute.
Danesh Varma, heretofore CFO of CMC, will continue as a Director of the Company.
Acquisition of Maximos Metals Corp
The acquisition of Maximos was completed by way of a three-cornered amalgamation between Maximos and a wholly owned subsidiary of CMC, which resulted in Maximos becoming a wholly owned subsidiary of CMC, and the shareholders of Maximos becoming shareholders of CMC (see CMC news release May 3, 2021).
Private Placement Financing $5.95 Million
In connection with the acquisition of Maximos, CMC closed a non-brokered private placement equity financing (the “Financing“) through an offering of subscription receipts (“Subscription Receipts“) at a price of $0.30 per flow-through receipt (“FT Subscription Receipt“) and $0.225 per non-flow-through receipt (“HD Subscription Receipt“), led by key supporting investors, including certain Maximos insiders, Clarion Finance Pte Ltd., and Commodity Capital.
Pursuant to the Financing, CMC issued 17,544,443 HD Subscription Receipts at a price of $0.225 each for gross proceeds of $3,947,499.68 and 6,666,666 FT Subscription Receipts at a price of $0.30 each, for gross proceeds of $1,999,999.80. Each Subscription Receipt entitled the holder to receive one CMC Share on completion of the amalgamation.
Strategic Focus on Battery Manganese and Critical Minerals
CMC’s immediate strategic focus is the advancement of its wholly owned Woodstock manganese property in New Brunswick, Canada, strategically located adjacent to Trans-Canada Highway and near the US border.
Woodstock is an advanced large, carbonate hosted, manganese deposit with a National Instrument 43-101 (“NI 43-101”) defined resource and completed PEA, with demonstrated flow sheet for production of various high purity manganese products, and with multiple resource expansion areas, including other deposits with historical resources.
The Woodstock property hosts the near-surface, Plymouth carbonate-hosted manganese-iron deposit (“Plymouth”) which contains an Inferred Resource of 44,770,000 tonnes grading 9.85% manganese, on which a positive Preliminary Economic Assessment with supporting NI 43-101 compliant technical report (“PEA”) was completed in 2014 to evaluate a potential open pit mining and processing facility.
CMC’s Woodstock property also hosts two adjacent outcropping manganese deposits, the North Hartford and South Hartford deposits, each of which hosts historical, non-NI 43-101 compliant, uncategorized resources, including 51.2 million short tons (46.5 million tonnes) averaging 10.9% Mn (manganese) and 13.3% Fe within the 1North Hartford deposit, and 50 million short tons (45 million tonnes) grading 8% Mn and 12% Fe within the 1South Hartford deposit.
The Plymouth deposit, together with the North and South Hartford deposits, are believed to represent the largest accumulation of manganese carbonate (rhodochrosite) in North America and collectively one of the largest manganese carbonate deposits in the world outside China.
Manganese has been identified by the Canadian and US governments as a critical strategic mineral that is essential for national defense, aerospace, technology, and energy that is highly susceptible to supply interruptions due to the lack of domestic production.
Manganese is a key component in the formulations of the cathode material used in high-performance lithium-ion batteries, and in utility bulk energy storage facilities, which are expected to create strong demand for high-purity manganese products. Manganese at the Woodstock Plymouth Deposit predominately occurs as a manganese carbonate which is preferred, relative to higher-grade manganese oxide feed materials, for production of high-purity manganese metals.
As the PEA was focused on the potential for electrolytic manganese metal production, the current program will seek to update the PEA for the production of both high purity manganese metal and high purity manganese sulphate monohydrate for the battery industry. Concurrently, CMC proposes to undertake several programs to advance various project categories to a prefeasibility level of study, including: Product Market and End-User Market Assessment; Process Development and Advanced Metallurgy; Infrastructure Evaluation and Preliminary Environmental Assessment and Engagement.
Additionally, CMC plans to undertake a drilling program to further define the Plymouth deposit (currently open in several directions) as well as, explore the adjacent North and South Hartford deposits.
Maximos Nickel Cobalt Properties
As a result of the acquisition of Maximos, CMC achieves additional exposure to key technology metals – Nickel, Copper and Cobalt sulphides, via Maximos’ nickel cobalt exploration claims in Labrador and its investment in Spark Minerals Inc., an entity that holds the Londonderry and Trident properties in Nova Scotia with potential for iron-oxide-copper-gold (IOCG) type mineralization.
Maximos holds a 100% interest in the Maximos Nickel Property which consists of nine discontinuous mineral Licenses (24907M to 24915M) covering a total area of 336 km2 in north western Labrador on which Maximos completed a diamond drilling program in late 2017 and early 2018.
Maximos holds a majority equity ownership of Spark Minerals Inc., that holds iron oxide copper gold mineral licences in Nova Scotia, and which recently announced a proposed reverse takeover transaction with Mongoose Mining Ltd.
ABOUT CANADIAN MANGANESE
CMC is a Canadian mineral development company aiming to become a supplier of high-purity manganese metal products for the rechargeable battery industry.
CMC holds the Woodstock manganese property In New Brunswick containing the Plymouth manganese-iron deposit that hosts an Inferred Resource of 44,770,000 tonnes grading 9.85% manganese and on which a positive preliminary economic assessment, NI 43-101 technical report was completed in 2014.
Qualified Person and Technical Report
Paul Moore, P. Geo., is the Company’s designated non-Independent Qualified Person and has reviewed and approved the technical and scientific contents relating to Woodstock manganese property in this news release.
The 2014 Mineral Resource Estimate for the Plymouth Mn-Fe deposit was prepared by Mercator Geological Services as disclosed in the Technical Report issued in July of 2014 as a Preliminary Economic Assessment [Preliminary Economic Assessment on the Woodstock Manganese Property, New Brunswick Canada. Effective Date: July 10, 2014. Prepared by Dharshan Kesavanathan, P.Eng., Laszlo Bodi, P.Eng., Michael Cullen, M.Sc., P.Geo., Mike McLaughlin, P.Eng., Stephanie M. Goodine, P.Eng., and Wenchang Ni, P.Eng.]. (Technical Report filed on SEDAR under the profile of CMC’s former parent company, Buchans Resources Limited, at www.sedar.com and on the Company’s website).
Historical Estimates: This News Release contains historical estimates, including estimates of the quantity and grade for deposits referred to as the North Hartford and South Hartford deposits. These historical estimates are based on data obtained and prepared by previous operators and neither CMC nor its predecessors have located original assay sheets or details of the estimation methodology, nor the key assumptions or parameters, underlying the estimates. A qualified person has not done sufficient work to verify or classify the historical estimates for the North Hartford or South Hartford deposits as current mineral resources. CMC is not treating these historical estimates as current mineral resources in accordance with NI 43-101, and these estimates should not be relied upon.
For further information:
John F. Kearney: Chairman & Chief Executive +1 416 362 6686
Matthew Allas: President and CEO, Maximos Metals Corporation +1 647 338 3748
Additional information on Canadian Manganese Company Inc. is available at www.CanadianManganese.com
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. Completion of the transaction is subject to a number of conditions. There can be no assurance that the Transaction will be completed as proposed or at all.
ANY SECURITIES REFERRED TO HEREIN WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO A U.S. PERSON IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.
This news release contains certain forward-looking statements relating to, but not limited to, the Company’s expectations, intentions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”, “estimate”, “may” and “will” or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, delays in the development of projects changes in exchange rates, fluctuations in commodity prices, inflation and other factors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Shareholders and prospective investors should be aware that these statements are subject to known and unknown risks uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.