Revelo Resources Corp.
Revelo Announces Corporate Reorganization & Vision for the Future
DGAP-News: Revelo Resources Corp.
/ Key word(s): Miscellaneous
Vancouver, British Columbia–(Newsfile Corp. – February 6, 2020) – Revelo Resources Corp. (TSXV: RVL) (“Revelo” or the “Company”) is pleased to announce that a review of its exploration strategy has concluded that key changes are required, centered on exploration of the Company’s gold portfolio, while leveraging the copper portfolio through partners and spinouts. As a result, Revelo intends to initiate a series of initiatives as outlined below.
Over the past three years, a combination of cash loans and accrued fees from management, together with loans from Term Oil Inc. and EMX Royalty Corp., has provided the capital for Revelo to operate. These actions were taken during a period of subdued equity markets in order for the Company to protect and preserve its property portfolio, as well as to continue pursuing its business model in terms of generating joint-venture agreements and selling royalty interests. EXPLORATION STRATEGY GOING FORWARD AND PORTFOLIO OVERVIEW After an extensive review of its business, the Company has decided to abandon its reliance on third-party funding for exploration of its projects and will now focus on sole-funded exploration of its gold portfolio. Additionally, Revelo will look to create value for its shareholders from its copper portfolio through partnerships and spinouts where we can direct or influence the exploration initiatives. Once the sale of the 20 royalties to EMX is complete, Revelo will have 4 gold projects and 11 copper projects, as outlined below: Gold-Silver Portfolio – Self-Funded Exploration The Company has four gold exploration projects in Chile totalling almost 40,000 hectares:
Copper Portfolio – Joint Ventured Projects The Company has three porphyry copper projects in the Paleocene copper and precious metals belt under joint venture totalling 16,100 hectares. A further project, totalling 16,300 hectares, located along the Domeyko copper belt is subject to a letter agreement regarding a possible joint venture.
Copper Portfolio: Sole Funded Projects
Equity Holdings Revelo currently owns 10 million shares in one public company – Austral Gold Ltd (TSXV: AGLD) – and 2.7 million shares in one private company – Atacama Copper Exploration Ltd. If the agreement with BMR at Montezuma closes, Revelo will also receive shares in BMR which Revelo understands intends to list on the London Stock Exchange. Finally, should the two proposed copper spinouts into the two private companies be successfully completed, Revelo will then own shares in both of those private companies. This portfolio makes Revelo an important tenement holder in Chile and continues to give shareholders significant exposure to potential discovery along some of the world’s most important and prolific mineral belts that are host to multiple world-class deposits. RESTRUCTURING OF DEBT AND SHARE CONSOLIDATION The Company’s Board believes that the debt restructuring and share consolidation are necessary to provide the Company with a clean balance sheet in order to attract new capital and position the Company to unlock value within the exploration portfolio and make a discovery. Third-Party Debt Repayment – To February 29, 2020 the Company will owe EMX Royalty Corp. approximately $534,000 and Term Oil Inc. approximately $1.69 million. The Company will pay back 100% of the EMX debt and $1.45 million of the Term Oil debt through the sale of 20 royalties to EMX Royalty Corp. (subject to completion). The remaining $246,000 debt to Term Oil will be repaid through the sale of marketable securities held by the Company. Revelo expects that all third-party debt will be repaid by the end of February 2020. Share Consolidation – Revelo currently has 167,405,027 common shares issued and outstanding and, upon the 10:1 consolidation being completed, will have 16,740,503 common shares issued and outstanding. The Company does not intend to change its name in connection with the consolidation, although its CUSIP number and ISIN will change. The Board has approved the share consolidation. The share consolidation is not subject to shareholder approval as the Company’s Articles provide the Board with the authority to complete a consolidation up to a maximum of 10 to 1. Consolidation of the shares is subject only to TSX-V approval. Settlement of Board & Management Debt – To February 29, 2020, the Company will have debts totalling approximately $3.8 million owed to directors, management and advisors from cash loans together with salaries, fees and services accrued from early 2017. The following is the breakdown of the debt and the plans for write-offs and conversion:
PRO-FORMA SHARE STRUCTURE Pro-Forma – including rollback and debt conversion but prior to any new financing.
Qualified Person Demetrius Pohl, PhD., Certified Professional Geoscientist (CPG), an independent geological consultant to Revelo, is the Company’s Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosures for Mineral Projects of the Canadian Securities Administrators and has verified the data disclosed and approved the written disclosure of the technical information contained in this news release. ABOUT REVELO Revelo is a Canadian company listed on the TSX Venture Exchange (TSXV: RVL). Revelo has interests in an outstanding portfolio of projects prospective for gold and copper located along proven mineral belts in one of the world’s top mining jurisdictions – Chile. The Company has a vision to reward shareholders with wealth-generating mineral discoveries along Chile’s prime mineral belts, through leveraged and more efficient capital deployment, exploration, discovery and monetization. For more information, please visit Revelo’s website at www.reveloresources.com. All dollar numbers in this news release are in Canadian Dollars, unless otherwise stated. The reader is cautioned that when reference to an historic or an existing mining district is made in the above descriptions, this is to help place the properties into geologic context and is for reference purposes only. There is no evidence to date that similar mineral resources occur on Revelo’s properties. ON BEHALF OF THE BOARD Michael Winn | Chairman INVESTOR CONTACT Timothy J Beale | President & CEO Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release. FORWARD-LOOKING STATEMENT This news release contains certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical fact, that address events or developments that Revelo expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential”, “indicate” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Revelo believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52209 Click on, or paste the following link into your web browser,to view the associated documents http://www.newsfilecorp.com/release/52209News Source: Newsfile
06.02.2020 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Revelo Resources Corp. |
Canada | |
ISIN: | CA7613661031 |
EQS News ID: | 970247 |
End of News | DGAP News Service |