Following up on successful prospecting, mapping and sampling conducted over past two years.
Vancouver, BC, Canada, September 11, 2023 – First Tellurium Corp. (CSE: FTEL, OTC: FSTTF), reports that its September drill program is scheduled to launch in the second half of September at the Company’s Deer Horn property in west-central British Columbia. Drilling will focus on the Pond zone copper-gold porphyry target, where the objective is to intersect disseminated mineralization and help locate the main mineral zone in the subsurface. This information, combined with results from work over the past two years, would inform an expected much larger drill program in 2024.
First Tellurium is also launching an Induced Polarization (IP) geophysical survey in September. The Company has engaged Dias Geophysical of Saskatoon, Saskatchewan to conduct the survey. The program will follow up on successful rock sampling, channel sampling and prospecting conducted in 2022, and mapping and rock sampling conducted in August 2023. This combined work has extended the copper-gold porphyry target to five kilometers (3.1 miles) in length, which includes a possible 1.1-kilometer (.7 miles) extension of the existing 2.4-kilometer (1.5 miles) gold-silver-tellurium vein system, which now extends a total of 3.5 kilometers (2.2 miles) within the overall porphyry target.
“Our prospecting, mapping and sampling over the past two years has given us an extensive base of information to support the drilling and IP survey,” said First Tellurium President and CEO Tyrone Docherty. “What we have learned is that both the copper-gold porphyry target and gold-silver-tellurium vein system extend much farther than we first understood. Even more important is the discovery last month that the two mineralized systems are connected, supporting the premise that the property could support a large copper-gold porphyry across ground that has never been explored.”
Private Placement Financing
First Tellurium also announces a non-brokered private placement (the “Offering”) to raise up to $600,000 through the sale of up to 5,000,000 flow-through shares at $0.12 (the “Flow-Through Shares”) and up to $400,000 through the sale of up to 4,000,000 units at $0.10 (the “Units”). Each Unit will consist of one non-flow-through common share and one common share purchase warrant exercisable at $0.15 for a period of two years following the close of the offering.
Tyrone Docherty, President, CEO and a director of the Company (the “Insider”), will participate in the Offering through the purchase by his private company, Docherty Capital Corp., of 1,000,000 Flow-Through Shares for gross proceeds of $120,000. Participation by the Insider in the Offering is considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the Insider’s participation in the Offering in reliance of sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that participation in the Offering by the Insider did not exceed 25% of the fair market value of the Company’s market capitalization.
“I continue to be a major investor and big believer in the future of the Deer Horn Property, especially with the results of the past two years,” said Docherty. “We’ve kept this financing deliberately small, believing that the upcoming drilling and IP will allow us to conduct subsequent financings on better terms.”
The Company may pay a finder’s fee consisting of cash, shares and/or warrants to eligible finders as permitted under applicable securities laws and CSE policies. Proceeds arising from the sale of Flow-Through shares will be utilized for exploration expenditures on its Deer Horn Property. Proceeds arising from the sale of Units will be utilized for exploration on the Colorado Klondike Property in Saguache County, Colorado, and for unallocated working capital.
The Company’s disclosure of technical or scientific information related to the Deer Horn Project in this news release was reviewed and approved by Prof. Lee Groat, Ph.D, P.Geo, Technical Advisor to First Tellurium, who is a qualified person within the context of NI 43-101.
About First Tellurium Corp.
First Tellurium’s unique business model is to generate revenue and value through mineral discovery, project development, project generation and cooperative access to untapped mineral regions in Indigenous territory with sustainable exploration.
Our Klondike tellurium-gold property in Colorado and polymetallic Deer Horn Project in British Columbia anchor a diversified search for metals, working in alliance with Indigenous peoples, NGOs, governments
and leading metals buyers. This is the future of mineral exploration: generating revenue by exploring responsibly and leveraging diverse partnerships.
First Tellurium proudly adheres to and supports the principles and rights set out in the United Nations Declaration on the Rights of Indigenous Peoples and in particular the fundamental proposition of free, prior and informed consent. First Tellurium is listed on the Canadian Stock Exchange under the symbol “FTEL” and on the OTC under the symbol “FSTTF”. Further information about FTEL and its projects can be found on www.firsttellurium.com.
On behalf of the board of directors of First Tellurium Corp.
President and CEO
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Neither the Canadian Securities Exchange nor its regulations services accept responsibility for the adequacy or accuracy of this release.
All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated event.