Jan 27, 2015
VANCOUVER, BC - Maritime Resources Corp. (MAE-TSX Venture) is pleased to announce that we have engaged Bayfront Capital Partners Ltd. as our Financial Advisor to provide a complete capital solution for the Company, with the goal to bring the Hammerdown deposit back into commercial production. Bayfront is currently negotiating with a potential debt provider to enter into a non-binding Letter of Intent with the Company to provide up to $20 million for the capital expenditure required to re-open the historic underground working at the Hammerdown mine. On completion of a successful Engineering and Evaluation study, the debt financing scenario for the capital cost requirements would mean minimal dilution to Maritime's capital structure. This, together with the toll milling option at the Nugget Pond milling facility with Rambler Metals and Mining Ltd. ("Rambler"), will keep capital costs to a minimum and shorten the expected time line to bring the project back into commercial production.
Under the arrangement as per the Letter of Intent that was signed with Rambler, (News Release 14-09 dated November 17th, 2014) the Hammerdown material would be toll treated in the gold hydromet CIP circuit at the Nugget Pond milling facility at a rate of up to 500 metric tonnes per day ('mtpd'). It is anticipated that the engineering, permitting and construction of the new grinding circuit at Nugget Pond could be completed in a timely manner with the Hammerdown material being scheduled and ready for trucking based on the same timeline.
Throughout the process the Green Bay Property will remain 100% owned by Maritime along with all rights to continue exploring the land package. The Company intends to begin a small geophysical program on the Hammerdown / Rambullion extension in 2015 with a potential drill program to follow. There remains good exploration potential on the property which Maritime will continue to advance while Rambler focuses its efforts on the Hammerdown mine itself.
Doug Fulcher, President and CEO of Maritime commented: "We are extremely pleased to have entered into this agreement with Bayfront Capital and the potential arrangement for a debt financing. We very much look forward to working with this professional group to address the capital needs of the Company as we continue to advance the Hammerdown project."
ABOUT MARITIME RESOURCES CORP:
Maritime Resources holds 100% of the Green Bay property, located near Springdale, Newfoundland and Labrador. The property hosts the past producing Hammerdown gold mine and the Orion gold deposit separated by a 1.5 km distance, as well as the Lochinvar base metals/precious metals deposit.
An initial Independent NI 43-101 compliant Mineral Resource Estimate for the Green Bay Gold property was released in early June 2013. The study estimates the property to contain in excess of 425,000 ounces of gold (727,500 tonnes @ 11.59 g/t Au at Hammerdown and 1,096,500 tonnes @ 4.47 g/t Au at Orion) in the Measured and Indicated categories and in excess of 660,000 ounces (1,767,000 tonnes @ 7.58 g/t Au at Hammerdown and 1,288,000 tonnes @ 5.44 g/t Au at Orion) in the Inferred category, both at a 3 g/t cut-off grade. The estimate was compiled by Tetra Tech of Ontario.
The Hammerdown gold deposit was successfully mined by Richmont Mines between 2000 and 2004 while gold prices averaged $325/oz. During its operation, a total of 291,400 tonnes of ore were mined and milled, at an average grade of 15.83 g/t Au, recovering a total of 143,000 ounces of gold. All of the ore was processed at the Nugget Pond mill, now owned and operated by Rambler, with an average gold recovery of 97.1%. Mining terminated in 2004 due to low gold prices with mineralization remaining, although uneconomic at that time. The Orion gold deposit consists of two main vein systems, both of which are open along strike, and down plunge to the northeast.
Further information on the Green Bay Gold Property can be found on our website along with the NI 43-101 compliant Technical Report filed on SEDAR on July 11, 2013 at .
Bernard H. Kahlert, P.Eng. is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this release.
On behalf of the Board of Directors,
Cathy DiVito, Investor Relations
Telephone: (604) 336-7322
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.