Coverage for Rogue Resources (RRS.V) was initiated June 2017, with additional notes August 2017, October 2017, and May 2018. RRS.V is a resource company with high purity Silica properties in Quebec (Silicon Ridge) and Ontario (Snow White) among others.
Since our last update, the following releases were issued.
May 15 - Selects trucking contractor and port of export for Snow White, drilling continues. Technical report to be released in coming months.
Rogue is continuing its negotiations with logistics contractors and quartz buyers with a view to making an advancement decision in respect of development of the Project (the “Advancement Decision”).
May 29 - Nears completion on Snow White drill program and selects M.Plan International to complete its resource estimate.
M.Plan International Limited (“M.Plan”) to prepare mineral resource estimate at the Snow White and a technical report that complies with the requirements of National Instrument 43-101, including additional metallurgical analysis by ANZAPLAN in Germany. M.Plan is a joint venture between ANZAPLAN and Micon International Limited (“Micon”) formed specifically to provide consulting services in the specialty minerals sector.
Subject to, among other things, TSX Venture Exchange (“TSXV”) approval, Rogue has agreed to extend the term of the Warrants associated with the April 6, 2018 news release to March 31, 2019.
June 18 - Amends Snow White Payment Terms. Resource Report in July (Pushed back by a month). Partnered with Option Holders to shift certain payments to a capped royalty per tonne. Snow White Resource Report is progressing and expected in late July
June 25 - Announces Non-Brokered Private Placement of Common Share and Flow-Through Units. Sell up to 1,8M units at $0.22 per for $0.4M and up to 0.33M flow-through units at $0.30 for $0.1M. Non Brokered; 1.8M - Warrant at 0.30 cents. Flow through; 0.33M Warrant at $0.35 cents.
July 3 - Initial High Purity Analytical Results from Snow White Diamond Drill Program, Receives Hauling Permit for 2018.
Initial analytical results from 7 drill holes confirms high purity silica mineralization through the Main Zone. Preliminary identification of an additional quartz zone to the South. Agreement signed with the Township of Sables-Spanish Rivers, for 2018 Hauling Permit
July 25 - Announces Final High Purity Analytical Results from 2018 Diamond Drill Program on the Snow White Project’s Main Zone.
Additional drill hole analysis reported focused on the Main Zone. Hole 18-36 intersects 56.15 meters of 98.58% SiO2 including 34.50 meters of 99.24%. SiO2 All analytical results have been provided demonstrating a reasonable mass recovery.
July 30 - Announces Selected Grab Sample Grading 99.59% SiO2 on Snow White’s New Pure White Zone. A Corporate Update conference call will be held with investors on Wednesday, August 8th at 12:00 pm EST, to discuss the forthcoming Snow White Main Zone Resource and 2018 Plan.
Aug. 7 - Announces Initial Resource Estimate Snow White Project’s Main Zone. M.Plan identifies Indicated Resource of 486,000 t grading 97.05% SiO2 Inferred; Mineral Resource estimated at 271,000 t grading 94.34% SiO2.
Snow White project incorporates analytical results (877) from 36 diamond drill holes totaling 1,910 metres (“m”).
Aug. 9 - Investor Call: 1. Snow White (No PFS). 2. 2018 decision clients dependent. 3. Silicon Ridge (2019). 4) Grade -Path to Cashflow - Production.
TSXV approval of Private Placement Closing Extension from June 25, 2018, to Sept 5, 2018.
Sep. 4 - Rogue Files Snow White Technical Report, TSXV approval of Repricing and Extension of Private Placement, and Closing of First Tranche
Filed NI 43-101 Technical Report for Snow White Silica Property. Repriced and Extended Non-Brokered Private Placement. To issue 2,2M shares at $0.18 (vs. $0.22 prior) for $0.4M and up to 0.4M flow-through (FT) units at $0.25 (vs. $0.22 prior) per for $0.1M. Warrant of $0.30 and $0.35 cents for FT shares. Closes First Tranche gross proceeds of $0.13M from 0.75M shares at $0.18 per Unit.
As evidenced by the releases, RRS.V continued to de-risk its Snow White property. On the logistic front, the company selected trucking contractor, and port of export. In addition to re-negotiating payment terms with option holders, it obtained a hauling permit from Township of Sables-Spanish Rivers.
Furthermore, RRS.V's drill campaign was instrumental in confirming high purity content of SiO2 via metallurgical studies, and determining a comprehensive resource estimate for the Main Site (including filing of NI 43-101), as well as, identified additional quartz zone on Snow White.
While Silicon Ridge permitting was pushed back to 2019, Financing has continued to be a challenge for the company. The warrant extension from May 28 to March 31, 2019 might have been a foreshadow. The June 25th non-brokered financing was extended on August 9th to September 5th. While the first tranche closed on September 4th, it had to be re-priced (and lowered from $0.22 to $0.18 cents) and is still incomplete to date. Looking back, a sharp decline RRS.V's in valuation occurred immediately after the investor conference call (August 9th); a precursor for the repricing?
While we warned in our May 2018 note that "warrant terms can be modified and expiration date extended", the combination of the lack of "an end buyer(s)" with the current financing challenges and market dynamics are issues encountered by late stage mining projects.
Currently halted, RRS.V would benefit from an investment from a larger entity and/or an additional off-take partner or whichever would mitigate the selling pressure encountered since August 9th. However, the recent buying volume of September 24th and October 4th seems positive indicators.
While RRS.V's execution to date warrants a high grade (not just in SiO2), many await the upcoming news and the market's reaction.
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