REG - Cloudbreak Discovery - Corporate Update

Cloudbreak DiscoveryAnnouncement

01/11/2022 07:17

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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
(mailto: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 PLC                                    Tel: +1 604 428 9480

                                                             Kyler Hardy, CEO                khardy@cloudbreakdiscovery.com (mailto: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 (mailto:Cloudbreak@blytheray.com)

 (Financial PR/IR-London)
                                                             Tim Blythe

                                                             Megan Ray

 Stellium Services                                           Tel: +44(0)207 129 1205         Cloudbreak@StelliumServices.com (mailto:Cloudbreak@StelliumServices.com)

 (Investor Relations)
 www.StelliumServices.com (http://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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