Toronto, Ontario--(Newsfile Corp. - January 20, 2025) - Cascada Silver Corp. (CSE: CSS) ("Cascada") is pleased to announce that is has negotiated certain amendments to the payment structure in the Angie Copper Molybdenum Project ("Angie Project") option agreement (the "Option Agreement"), including a reduction to the January 20, 2025 payment. Cascada is currently conducting a Phase II diamond drilling program at the Angie Project, targeting a copper molybdenum porphyry system (see Cascada's news release dated January 9, 2025 for additional details).
Under the revised terms of the Option Agreement with Inversiones América SpA, the vendor of the Angie Project (the "Vendor"), the January 20, 2025 payment has been reduced from $300,000 to $163,750 (all amounts in this release are in US$). The revised 2025 payment will be made 50% ($81,875) in cash and 50% through the issuance of 2,700,516 common shares of Cascada ("Shares") calculated based upon the 20-day volume weighted adjusted price of the Shares. The January 20, 2026 payment has been increased by $163,750 to $913,750 and can be settled either through the payment of cash or entirely through the issuance of Shares at Cascada's option. The unchanged final payment of $2,500,000, due January 20, 2027, 50% of which may be paid in Shares at Cascada's option. Amendments to the payment schedule are summarized in Table 1 below.
"I would like to thank the Vendor for working with us to modify the Option Agreement payment structure. The revised schedule allows us to allocate funds to near term exploration activities," said Carl Hansen, President and CEO of Cascada. "We recently commenced a Phase II diamond drilling program at the Angie Project following up on the positive results from the October 2024 Phase 1 RC drill program. Up to four diamond drill holes, totalling 2,000 meters, are planned with the first diamond drill hole nearing completion. Assay results are anticipated during March 2025."
Table 1 - Angie Project Option Payment Schedule
Date
Option Payment Schedule
Original (2023)
Amended (2025)
January 20, 2025
$300,000(1)
$163,750(1)
January 20, 2026
$750,000(1)
$913,750(2)
January 20, 2027
$2,500,000(1)
$2,500,000(1)
(1) 50% of the payment may be made in Shares at Cascada's option (2) 100% of the payment may be made in Shares at Cascada's option
In addition to the revised annual payments noted in Table 1, the Vendor will receive a 1.5% net smelter royalty (the "NSR") upon Cascada earning a 100% interest in the Angie Project. Two thirds of the NSR may be purchased by Cascada for $5,000,000 for a period of up to one year from the start of commercial production.
Any Shares issued to the Vendor, including those issuable in connection with the option payment due January 20, 2025, will be subject to a customary 4-month hold period under applicable Canadian securities laws.
NI 43-101 Technical Disclosure
The Qualified Person, as defined by National Instrument 43-101 of the Canadian Securities Administrators, for Cascada's exploration activities in Chile is Sergio Diaz, a resident of Santiago, Chile. Mr. Diaz is a Public Registered Person for Reserves and Resources N° 51, in Chile and is also registered in the Colegio de Geólogos de Chile under N° 315. Mr. Diaz has reviewed and approved the disclosure of the scientific and technical information contained in this release.
About Cascada Silver Corp.
Cascada is a mineral exploration company focused on exploration opportunities in Chile. Cascada's team of successful exploration professionals are dedicated to the discovery of mineral deposits that can be progressed into economically viable development projects creating value for all stakeholders.
This news release contains forward-looking statements, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to: plans for the evaluation of exploration properties; the success of evaluation plans; the success of exploration activities; mine development prospects; and, potential for future metals production. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "expects" or "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: changes in economic parameters and assumptions; all aspects related to the timing of exploration activities and receipt of exploration results; the interpretation and actual results of current exploration activities; changes in project or exploration parameters as plans continue to be refined; the results of regulatory and permitting processes; future metals price; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; the results of economic and technical studies; delays in obtaining governmental approvals or financing or in the completion of exploration; as well as those factors disclosed in Cascada's publicly filed documents.
Although Cascada has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the Canadian Securities Exchange nor its regulation services provider has reviewed or accepts responsibility for the adequacy or accuracy of the content of this news release
