Vancouver, British Columbia--(Newsfile Corp. - December 6, 2024) - Sonoran Desert Copper Corporation (TSXV: SDCU) ("SDCU'' or the "Company") is pleased to announce that the Company has signed a Letter of Intent (the "LOI") dated December 3rd 2024, to acquire a 100-per-cent interest in the Bahia Chromite Project (the "Bahia Chromite Project"). The Bahia Chromite Project is in the northern region of the State of Bahia, Brazil, near the municipality of Piritiba, which is 310km from Salvador via BR-324 and BR-052 to Mundo Novo and BR-421 to Piritiba (all paved).
The Bahia Chromite Project is being acquired from Beko Invest Ltd., based on the previous extensive development work, completed under permit No. 1807 of 20.06.78, Official Gazette of 15.07.77 - MME-DNPM 808.223/75 of SOGEMINE-EM, including a final research report approved by the Brazilian Mineral Agency (ANM), and the filing of the Mining Application, which was assessed by the ANM. The Mining Application submitted by SOGEMINE was rejected for lack of presentation of the Environmental License. SOGEMINE did not advance to production due to the commercial strategies and internal strategies of the parent companies which owned SOGEMINE.
The chrome market throughout Latin America, has been dominated by Ferbasa, which has focused on its main production center in the region of Campo Formoso, where it has significant reserves to guarantee the operation of its chrome alloy factory for many years. Ferbasa no longer pursues new deposits for the enterprise. J.P Silva Rocha Estudos Geológicos Ltda, has verified the accuracy of the research procedures carried out at the Bahia Chromite Project through visits and field inspections corresponding to the information in the historical reports including the mapping, geophysical, geochemical and geological interpretations, thus avoiding unnecessary reworks. In addition, a review was conducted regarding the environmental aspects of the Bahia Chromite Project, which were determined to be favourable since locally there is minimal vegetation cover and there will be minimal disturbance to the surface and based on the final positive research report approved by the DNPM.
Fast-Track Development Plans
The Company is working to retain the services of a chromite expert consultant who formerly worked for Ferbasa and has been historically involved in the Bahia Chromite Project. Historical exploration results from Bahia Chromite Project yielded chromium values ranging from 19.3% to 50% Cr2O3. The plan is to move the Bahia Chromite Project to a pilot plant production on a fast-track development basis with a detailed plan in place for the Capital Budget in the next 90 days. Upon the initiation of trial mining, the Company will utilize capital generated to advance the exploration work to validate the resource and to better scale the throughput of a future Mine Permit based on a PEA report.
Transaction Details
The proposed terms and conditions of the Purchase Option, which will be the basis of the terms and conditions to be set forth in a definitive agreement (the "Definitive Agreement") between the parties, are as follows:
(a) In order to exercise the Purchase Option, SDCU will advance total cash payments to the Vendor of the BC Project of US$1,300,000, as follows:
(i) SDCU will make a US$80,000 cash payment to the Vendor of the BC Project, upon execution of the Definitive Agreement.
(ii) SDCU will make a US$305,000 cash payment to the Vendor of the BC Project, within six months of the mineral rights transfer at the ANM in Brazil.
(iii) SDCU will make a US$305,000 cash payment to the Vendor of the BC Project, within twelve months of the mineral rights transfer at the ANM in Brazil.
(iv) SDCU will make a US$305,000 cash payment to the Vendor of the BC Project, within eighteen months of the mineral rights transfer at the ANM in Brazil.
(v) SDCU will make a US$305,000 cash payment to the Vendor of the BC Project, within twenty-four months of the mineral rights transfer at the ANM in Brazil.
(b) The Parties agree that a two percent Net Smelter Royalty will granted in favour of the Vendor on all production of all materials from the BC Project.
Closing Conditions.
The execution of the Definitive Agreements will be subject to the following conditions:
(a) Each Party obtaining all necessary and appropriate governmental, regulatory, contractual, board of director, shareholder, member and other third-party licenses, permits, approvals and/or consents which are required to execute the Definitive Agreements.
(b) SDCU obtaining TSX Venture Exchange approvals for the transaction.
(c) Such other necessary and appropriate conditions as the parties shall mutually agree during their negotiations of the Definitive Agreements.
Qualified Person Statement
The technical contents of this release were approved by Andre L. Costa, P.Geo., FAIG, a Qualified Person as defined by National Instrument 43-101 and an independent consultant to the Company.
References
(1) Definitive Feasibility Study of SOGEMINE Empressa de Mineracao Ltda, dated August 12, 1983, by Arther W. Ruff. Permit No. 1807 of 20.06.78, Official Gazette of 15.07.77 - MME-DNPM 808.223/75.
(2) Final report filled at the ANM - Brazilian Mining Agency. Claim # 870.024/2024. Exploration permit #60 published on 02/10/2021 by J. P Silva Rocha Estudos Geológicos Ltd.
ABOUT SONORAN DESERT COPPER CORPORATION
Sonoran Desert Copper Corporation is focused on securing, developing and monetizing materials assets and technologies to build shareholder value.
On behalf of the Board of Directors of
SONORAN DESERT COPPER CORPORATION
"Brian Leeners"
Brian Leeners, CEO & Director
brianleeners@gmail.com / +1 604-862-4184 (WhatsApp)
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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/232762