Troy Minerals Successfully Acquires CBGB Ventures Corp

Troy Minerals Inc. has announced the completion of its acquisition of 100% of CBGB Ventures Corp. ("CBGB"), as detailed in its previous news releases dated June 10, 2024, and July 3, 2024. The acquisition involved issuing 3,244,151 Troy common shares and 9,732,454 special warrants. All shares, including those from the special warrants, are subject to voluntary holding and escrow agreements. Initially, 25% of these shares will be released six months after the closing date, with the remaining 75% becoming available upon reaching specific milestones, including commercial production.

The transaction grants Troy a 100% ownership stake in the Table Mountain silica project in British Columbia and the option to acquire up to an 80% interest in the Tsagaan Zalaa silica project in Mongolia.

Rana Vig, President & CEO of Troy Minerals, stated, “This transaction allows us to acquire two highly promising, high-purity silica assets, enhancing and expanding our critical mineral portfolio. We now plan to launch an aggressive exploration and development campaign for both properties. Silica projects typically have shorter permitting timelines compared to traditional mining ventures, which positions Troy to advance these projects more rapidly. This strategic move could establish Troy as a prominent player in the critical minerals sector. With the potential for near-term production and our goal to become a profitable mining company, Troy Minerals is poised to fund future exploration activities through non-dilutive capital.”

Silica, essential for everyday items such as microchips and emerging green technologies like solar photovoltaics (PV), is seeing increased demand. This has raised concerns among European and North American governments, especially amid rising global tensions and China's dominance in silicon production. There are growing worries about potential restrictions on supplies as China maintains its global influence.

The special warrants will convert into common shares as follows: 3,244,151 special warrants will be converted once Troy completes its acquisition of a 23.8% interest in the company holding the Tsagaan Zalaa project. An additional 6,488,305 special warrants will convert in stages upon reaching specific milestones: (i) securing a 5 million-tonne resource at the Table Mountain Project, (ii) starting commercial production at the Table Mountain Project, and (iii) beginning commercial production at the Tsagaan Zalaa Project. Furthermore, all shares, including those from the conversion of special warrants, will be subject to an escrow release over a period of either 12 or 42 months.

Project Highlight

The Table Mountain Silica Project in British Columbia covers 1,698 hectares (4,196 acres) and is conveniently located 4 km east of Golden, B.C., and 6 km from the Canadian Pacific Railway's Golden Rail Yard, providing easy year-round access. The project features high-purity quartzite from the Mount Wilson Formation, with a regionally mapped strike length of up to 10 km and apparent surface widths ranging from 300 to 1,400 metres. In 2017, sampling by Patriot Battery Metals Inc (formerly 92 Resources Corp), the previous owner of the Table Mountain Silica Project, revealed up to 99.74% SiO2 from grab samples in a 700 x 600 metre area. More recent surface sampling in 2023 from the central part of the property yielded up to 99.24% SiO2, with an average of 98.62% SiO2 from nine grab samples taken across a 180-metre traverse. The project is situated near the Sinova Quartz quarry, located 6 km to the southwest, and the Moberly Silica Mine, 7.5 km to the northwest. The Sinova Quartz quarry is set to export silica to support its silicon plant in Tennessee, USA. Notably, Sinova’s chairman, Sir Mick Davis, also leads Vision Blue Resources, which invested $125 million into Sinova in 2021. This project aligns with North America's push to secure critical minerals, with over $1.4 billion allocated in the US for silica applications, including a $150 million investment by Sinova Global in a new silicon metal production facility in Tiptonville, Tennessee, alongside federal renewable energy incentives. The project shows strong potential for quick cash flow.

Tsagaan Zalaa Silica Project, Mongolia

The Tsagaan Zalaa Silica Project spans 1,670 hectares (4,127 acres) and is strategically located near a Japanese-owned high-purity silica quarry and refiner that exports high-purity silica directly to Japan. Situated close to the Chinese border, the project benefits from proximity to potential offtakers. It features high-purity quartz veins up to 10 metres wide, hosted within Upper-Middle Devonian sediments. Initial drilling has been successful, with the final drilling phase anticipated by Fall 2024. Future goals include establishing a resource base, developing a mine plan, and applying for a mining license, contingent on drilling results. A 10-tonne bulk sample sent to a Chinese buyer achieved an exceptional 99.98% SiO2 purity following the beneficiation of run-of-mine material. The project is poised for rapid development, with production targeted for Q2 2025.