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Camrova Resources Inc. Announces Update on Boleo Project and Status of the Chilean Acquisition

TORONTO, May 30, 2019 (GLOBE NEWSWIRE) -- Camrova Resources Inc. (“Camrova” or the “Company”) (TSX-V: CAV; OTC: BAJFF; SSE :CAVCL.CAV US$ - Chile) is pleased to advise that Wolf Seidler, Director and Tom Ogryzlo, Interim CEO attended meetings of both the Board of Directors and Shareholders of Minera Metalurgica Del Boleo, S.A.P.I. De C.V. (“MMB”)  held in Sta. Rosalia on May  14, 2019. Camrova is invited to attend Board Meetings as an observer with voice but no vote and is entitled to receive the same documentation that is provided to Board Members. Korea Resources Corporation ("Kores") is the majority shareholder of MMB through direct and indirect holdings. MMB is the operator of the Boleo Mine (copper, cobalt, zinc).

Two of the main items addressed at both meetings were forecast performance for 2019 and approval of MMB’s revised Life of Mine Plan. These items were presented to Camrova, and Camrova had no input into their preparation. Camrova is relying upon MMB in providing the projections below.

For 2019, production of underground ore is forecast by MMB to be 508,000t  at a grade of 1.19% Cu while open pit production is forecast at 2,438,000t of ore with a grade of 0.80% Cu, to give a combined total of 2,946,000t  at 0.87% Cu. Surface production includes processing historic tailings with a grade of about 0.50% Cu. Taking plant recoveries into account, (Cu-80.4%/Co-29.9%/Zn-4.2%) MMB in 2019 expects to produce 19,697t of cathode copper, 419t of cobalt and 1016t of zinc resulting in negative Free Cash Flow of $21M after payment of $25M in interest.

MMB’s LOM plan also forecasts a mine life of 16 years ending in 2034 by which time all debt is projected to be repaid, without a return of any of the capital that has been invested to date.

A MMB Shareholder’s Meeting was held immediately following the Board Meeting. At this meeting there was unanimous approval of a proposal to make changes to certain MMB’s bylaws to make them consistent with corresponding clauses contained in the revised Shareholder’s Agreement in December, 2016. 

During the visit to Boleo, Camrova held discussions with Kores and MMB with respect to outstanding receivables owed by MMB to Camrova, totaling approximately Cdn$430,000.  Camrova has filed a litigation claim in Mexico against MMB. Kores and MMB have yet to formally defend the litigation.

Update on Slag Project in Chile

As previously disclosed, Camrova has entered into an asset purchase agreement (the "Asset Purchase Agreement") dated May 1, 2019 with Asesoria y Inversiones MAYG SpA ("MAYG") pursuant to which Camrova has the right to acquire MAYG's interest in a slag agreement (the "Slag Agreement") between Anglo American Sur S.A. ("Anglo") and MAYG. Upon closing of the Asset Purchase Agreement, Camrova will have the right to process and recover copper contained in the existing 2.4 Mt slag dump (average copper content of 1%) that was generated by Anglo's Chagres smelter. Fresh slag is being produced at a rate of 30,000t/m which is forecast to continue for the next 25 years.

A condition for closing of the Asset Purchase Agreement is that Camrova acquire a suitable flotation plant to process the slag (the “Process Plant”). Camrova is in advanced negotiations with the owner of such a facility in Chile that currently has a monthly capacity of 18,000t. Camrova has retained a well-known Chilean engineering company WS Ingeneria Ltda (“WSI”) to carry out legal, corporate and financial Due Diligence relating to the Process Plant, and to prepare a technical study. WSI has undertaken to provide Camrova with its due diligence and technical/economic findings by mid Q3-2019. Management expects this project will not be classified as a mining project by authorities in either Chile or Canada but will fall into a category of environmental remediation or industrial processing.

Subject to the WSI technical study and Due Diligence referred to above, Camrova currently intends that a Chilean subsidiary of Camrova will acquire the Process Plant, and Camrova will change the plant from processing ore to processing slag to produce a 20% copper concentrate at a beginning annual rate of 15,000t. Camrova expects that increases to throughput can be made with further capital expenditures, which are unknown at this time and will be disclosed as the information becomes available to Camrova.

Predicated on preliminary financial projections for the project, Camrova has engaged Oak Hill Financial to assist Camrova in raising funding for the acquisition of the Slag Agreement and the Process Plant, and to fund the conversion from processing ore to processing slag. In the interim until this financing is in place, Camrova intends to seek financing to meet working capital requirements amounting to approximately Cdn$200,000 (two hundred thousand dollars). No terms of such financing have yet been determined, and such financing may be subject to regulatory approval.

Tom Ogryzlo, Interim CEO of Camrova, stated the following: “We are confident that the due diligence and technical studies presently underway with WSI will result in a financial model showing an attractive return on investment. WSI has the advantage of having recently completed a definitive study for Camrova regarding a “grass roots” flotation plant very similar to the one that Camrova is now negotiating to acquire. We were very satisfied with WSI’s work on the previous study.”

About Camrova Resources Inc.

Camrova is a Canadian mining company whose common shares are listed on the TSX-V. Camrova owns a 7.24% interest in the Boleo copper-cobalt-zinc mine located in Baja California Sur, Mexico.

Neither 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.

For further information contact:

Camrova Resources Inc.

Tom Ogryzlo
Interim Chief Executive Officer

Tel: 416-271-0879
Email: info@camrovaresources.com
Kris Misir
Chief Financial Officer

Tel: 647-632-3444
Email: kris.misir@camrovaresources.com

Cautionary Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Camrova’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to, among other things, ongoing discussions with Kores and MMB, and the ability of the Company to successfully complete the Asset Purchase Agreement with MAYG, including the acquisition of the Process Plant or another a suitable processing facility to process the slag waste material. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Camrova, and are subject to the WSI technical study and Due Diligence. Although such statements are based on management’s reasonable assumptions, there can be no assurance that the proposed transactions will occur, or that if the proposed transactions do occur, will be completed on the terms described above.

The forward-looking information contained in this release is made as of the date hereof and Camrova is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

This announcement does not constitute an offer, invitation or recommendation to subscribe for or purchase any securities and neither this announcement nor anything contained in it shall form the basis of any contract or commitment.  In particular, this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal. 

The securities referred to herein have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available.

This document may not be distributed or released in the United States or through U.S. Newswire Services.