TIDMCDL
RNS Number : 8218E
Cloudbreak Discovery PLC
01 November 2022
1 November 2022
Cloudbreak Discovery Plc
("Cloudbreak" or the "Company")
Corporate Update
Cloudbreak Discovery PLC (LSE: CDL), a leading London listed
royalty company and natural resources project generator, is pleased
to provide a corporate and operational update, including details of
a restructuring plan designed to refocus the business with the aim
of enhancing shareholder value and shortening execution
timelines.
Overview
Corporate Update
-- Cloudbreak intends to focus on energy royalty acquisitions in
the United States and acquisitions of minority interests in
international energy projects
-- The mineral exploration segment of the business will be
transferred to, and developed and operated through, a wholly owned
Canadian subsidiary of Cloudbreak, to be named Cloudbreak
Exploration Inc. ("Cloudbreak Exploration")
-- Strategic realignment is intended to streamline ongoing
initiatives, efficiently deploy capital and focus efforts in line
with management's expertise
-- Rory Kutluoglu and Cam Bartsch intend to resign from their
positions at Cloudbreak to focus full time on Cloudbreak
Exploration
-- Cloudbreak will host a presentation and investor Q&A on
Wednesday 9 November at 6:00 pm GMT . Joining details to be
announced in due course
Operational Update
-- Cloudbreak has received its first royalty payment from the
Masten Unit Energy project, after entering an agreement with G2
Energy Corp in May 2022
-- Drilling programmes have commenced at Silver Switchback and
La Blache, with a preliminary economic assessment report ("PEA") on
La Blache anticipated in Q2 2023
-- Soil sample surveys have been conducted on the Rupert and South Timmins projects
-- Drilling programme at Klondike has concluded and the
permitting process is underway for drilling at Stateline
Kyler Hardy, President and CEO of Cloudbreak , commented, "The
proposed restructuring of Cloudbreak will provide a
transformational opportunity for the company, allowing us to
allocate capital and expertise in the most effective and efficient
manner. Through this, we will aim to drive shareholder value,
targeting greater returns on our investments.
"We are delighted to be receiving payments from the Masten Unit
energy royalty, which, coupled with our strong stream of potential
royalty acquisitions in the pipeline, gives us confidence that
Cloudbreak can achieve its goal of becoming cashflow positive in
the near-term.
"On the mineral exploration side of the business, the team along
with our partners have made promising progress on our portfolio of
mineral assets. We have been working diligently on advancing our
bauxite and lithium initiatives and look forward to updating the
market on these as we enter this new phase in Cloudbreak's
journey."
Further Information:
Corporate Restructuring
Since listing on the London Stock Exchange in 2021, Cloudbreak
has been successfully implementing its project generator and
royalty acquisition model in the natural resources sectors. In
order to streamline its ongoing initiatives, the Company has
elected to reorganise its corporate structure. The restructuring
will facilitate the enhanced allocation of capital and the
strategic focus of efforts in line with management expertise. It is
intended that the restructuring will be completed by late November
2022.
Moving forward, it is intended that Cloudbreak will be focused
on energy royalty acquisitions aimed at bringing near-term cashflow
to the Company. Its primary operating jurisdiction will be the
United States, where the Company currently holds the Masten Unit
and Butte Strawn assets. Cloudbreak is actively sourcing and
reviewing additional royalty opportunities. In addition to its
active royalty acquisition programme, the Company will continue to
acquire minority interests and implement its project generation
model in international energy projects such as in Namibia, where
Cloudbreak has partnered with several experienced technical and
management teams.
The mineral exploration and project generation segment of the
business will be developed and operated through a wholly owned
subsidiary of Cloudbreak, to be named Cloudbreak Exploration. This
independently operated subsidiary will continue advancing its
diverse portfolio of mineral exploration projects, including the
ongoing core strategies of bauxite project acquisition in West
Africa, as well as the lithium brine strategy focused on the United
States.
Cloudbreak Exploration will be led by Rory Kutluoglu as Chief
Executive Officer, Cam Bartsch as Vice President of Exploration,
David Robinson as Chief Financial Officer and Kyler Hardy as
Executive Chairman. The Board will be augmented with additional
independent directors as required from time to time. Both Mr.
Kutluoglu and Mr. Bartsch will resign from Cloudbreak to focus full
time on Cloudbreak Exploration.
Operational Update
Energy Royalties
Cloudbreak is pleased to report that it has received its first
royalty payments from the Masten Unit Energy project, located in
Cochran County Texas, after entering into an agreement with G2
Energy Corp. (CSE: GTOO) in May 2022. As part of the agreement,
Cloudbreak provided financing for the project in exchange for a
3.25% overriding royalty interest, in addition to other
considerations.
Mineral Exploration
Further to the recently announced progress on the wholly owned
Northern Treasure (28 October 2022) and Foggy Mountain (19 October
2022) projects, Cloudbreak is pleased to provide the following
updates on its portfolio:
-- Norseman Silver Inc (TSX-V: NOC) has conducted a maiden drill
programme at Silver Switchback project in British Columbia, Canada,
and is awaiting assay results
-- Temas Resources Group (CSE: TMAS) is currently drilling at La
Blache, located in Quebec, Canada, having completed a metallurgical
pilot plant programme and engaging CSA Global, to write a PEA
report based on the historic and 2022 work programmes, which is
anticipated in Q2 2023
-- Buscando Resources Corp (CSE: BRCO) has completed a soil
sampling programme during the summer of 2022 at the Rupert project
on Vancouver Island, Canada. Interpretation of the results are
being compiled, with an update to the market anticipated
shortly
-- North American Performance Resources Ltd. has conducted a
similar soil survey at the South Timmins Project, located in
Ontario, Canada. The focus was to specifically survey areas over
contacts between the mafic and felsic volcanic rocks or identified
iron formation. These areas were well delineated by the airborne
magnetic survey conducted in 2021
-- Allied Copper Corp (TSX-V: CPR, "Allied Copper") has
completed a drilling programme at the Klondike project in Colorado,
United States, and is also currently waiting for assay results.
Allied Copper is also actively working through the permitting
process at the Stateline project in preparation for future
drilling
Lithium Brine Initiatives
Over the course of the last 24 months, Cloudbreak has deployed
considerable time and resources into targeting new lithium brine
projects in the United States. As a result of these efforts,
Cloudbreak has outlined 18 high priority areas of interest based on
its targeting criteria, supported by a comprehensive regional
dataset.
The high priority areas have measured lithium values ranging
from 100 milligrams per litre ("mg/L") to 500 mg/L and the porosity
of the reservoirs ranges from 5 to 18%. As a result of this
successful targeting initiative, Cloudbreak has entered into
discussions with several potential joint venture partners to
provide non-dilutive capital for the acquisition and advancement of
the targeted projects.
Bauxite Initiative
Cloudbreak has also been pursuing advanced, data-rich, bauxite
projects in West Africa through its wholly owned subsidiary Kudu
Resources Limited ("Kudu"). To date, it has made an application for
one project in Guinea and is anticipating final grant of the
licence in the coming weeks.
Kudu's key licence application has a historic estimate of 459
million tonnes of high-grade bauxite containing 42.6% aluminium
oxide (Al(2) O(3) ) and 1.9% silica dioxide (SiO(2) ) as stated by
Campodonic et al. May 2015 "A Mineral Resource Estimate on The
Somalu Bauxite Project, Guinea". Cut-off grades of >34% Al(2)
O(3) and <6% SiO(2) , rock density used 2.1 tonnes per cubic
metre. This historic estimate is relevant because it is the
culmination of previous work conducted on the property. It is of
Cloudbreak's opinion that this historic estimate is reliable as it
was prepared by an internationally recognised consultancy, to the
quality and rigour as defined by NI 43-101 standards to define a
resource at that time. However, a qualified person has not
conducted sufficient work to classify the historical estimate to
current Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) definitions of a resource. A qualified person has not
conducted sufficient work to classify the historical estimate to
current CIM definitions of a resource (this may include additional
drilling). The Company is not treating this historic estimate as
current mineral resources.
In West Africa, Cloudbreak and Kudu are pursuing several
additional bauxite projects that would compliment the first key
licence in Guinea. The focus of these efforts is to consolidate a
number of regional projects that benefit from shared
infrastructure. In addition to the ongoing bauxite initiatives and
being visible as a partner in the region, Cloudbreak has also had
the opportunity to review a range of projects, primarily in the
bulk commodity and mineral sands segment. Several of these projects
have the potential to be added to the pipeline, pending positive
outcomes from ongoing due diligence.
Presentation and Investor Q&A
Cloudbreak announces that it will be holding an investor
presentation and Q&A for all interested parties on Wednesday 9
November at 6:00 pm GMT. Details on how to join the event will be
published in due course.
If you would like to submit a question to Kyler Hardy, CEO of
Cloudbreak, please email your question to Cloudbreak@BlytheRay.com
by 5:00 pm GMT on Friday 4 November 2022.
Qualified Person
Mr. Rory Kutluoglu P. Geo., Chief Operation Officer of the
Company, is the Qualified Person ("QP") under NI 43-101 for the
technical information in this news release, has verified the data
disclosed and approves the technical contents contained in this
news release.
-ENDS-
For additional information please contact:
Cloudbreak Discovery Tel: +1 604 428 9480
PLC
Kyler Hardy, CEO khardy@cloudbreakdiscovery.com
Novum Securities Tel: +44 7399 9400
(Financial Adviser)
David Coffman
Shard Capital Partners Tel: +44 207 186 9900
(Broker)
Damon Heath / Isabella
Pierre
BlytheRay Tel: +44 207 138 3204 Cloudbreak@blytheray.com
(Financial PR/IR-London)
Tim Blythe
Megan Ray
Stellium Services Tel: +44(0)207 129 Cloudbreak@StelliumServices.com
(Investor Relations) 1205
www.StelliumServices.com Andrew Wilson
Claire Bowden
About Cloudbreak Discovery PLC
Cloudbreak Discovery PLC is a leading natural resource project
generator and royalty business. Cloudbreak is focused on energy
royalty acquisitions with the aim of bringing near-term cashflow
and driving shareholder value. Its primary operating jurisdiction
is the United States, but the Company also deploys its project
generation model in the international energy sector to acquire
minority interests in projects of merit.
Through its wholly owned but independently operated subsidiary,
Cloudbreak Exploration Inc., the Company will develop its array of
mineral assets, whilst continuing to generate new projects with a
particular focus on commodities key to the energy transition .
Cloudbreak's generative model across the energy and mineral
sector enables a multi-asset approach to investing and exploration.
Diversification within the natural resource sector and amongst
resource classes is key to withstanding the cycles of
investing.
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END
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November 01, 2022 03:00 ET (07:00 GMT)
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