ELY, Nev., Oct. 3, 2022 /CNW/ - Falcon Butte Minerals Corp. ("Falcon Butte" or the "Company") is pleased to announce it has entered into an exploration and earn-in agreement ("Agreement") with Freeport-McMoRan Exploration Corporation of Phoenix, Arizona ("Freeport"), in respect to the Company's Butte Valley porphyry copper prospect in White Pine County, Nevada (the "Butte Valley project").
The Butte Valley project is a large, partially-explored porphyry and skarn copper system located in eastern Nevada about 40 miles north of Ely in north-central White Pine County. The Company has this year completed an updated geophysics program and two drill holes (BV-19, BV-20) each down to a depth of approximately 2,000 feet and has now drilled a third hole (BV-21) to a depth of 1,751 feet. Drilled to a size of PQ and fully cased, the Company is now preparing to extend hole BV-21 to a depth of up to 6,000 feet. The Company believes there are numerous porphyry and skarn targets which will be the focus of continued exploration efforts.
Under the terms of the Agreement, Freeport has the exclusive right and option to acquire up to an 80% interest in the Butte Valley project by sole funding exploration expenditures up to US$33,000,000 in two stages. Upon Freeport earning an 80% interest in the Butte Valley project, any further exploration and project expenditures will be funded by Freeport and Falcon Butte in proportion to their respective ownership interest in the joint venture. If Falcon Butte's ownership percentage in the joint venture is diluted to 5% or less, then Falcon Butte's interest will be converted into a 0.5% uncapped Net Smelter Return Royalty.
Travis Naugle, Falcon Butte's chairman, states "We have a great belief in the potential of Butte Valley as one of the great deep copper prospects in North America and are excited that Freeport shares in this same vision and look forward to further advancing Butte Valley exploration efforts. We respect the qualities that Freeport brings as our partner, not just in its pre-eminent experience in deep copper deposits such as the Grasberg mine in Indonesia, but especially its commitment to responsible production and working closely with Native American and community stakeholders to create shared value."
In support of its continued role as operator at Butte Valley, the Company is further pleased to announce the appointment of Mr. Mark Ramirez as Chief Operating Officer. Mr. Ramirez brings over 25 years of global mining experience with some of the largest mining companies in the world, specializing in the exploration, development, construction and operation of numerous world-class underground mines.
About Falcon Butte
Falcon Butte Minerals Corp. is a private Canadian-based company advancing the Butte Valley copper project in White Pine County, Nevada, and various copper and gold targets as opportunities are identified. Significant shareholders in Falcon Butte include Lion Copper and Gold Corp. (TSXV: LEO) (OTCQB: LCGMF) with approximately 20% ownership, Crescat Capital LLC, Amvest Capital Principal Strategies LLC and certain other key investors.
On behalf of the Board of Directors,
The technical information in this news release has been reviewed and approved by Travis Naugle, QP MMSA, Chairman of Falcon Butte Minerals Corp. and a qualified person as defined in NI 43-101. Certain information in this news release may constitute forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "expect", or the negative of these terms and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; income tax and regulatory matters; the ability of the Company to implement its business strategies; competition; currency and interest rate fluctuations and other risks.
SOURCE Falcon Butte Minerals Corp.
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