Operation Highlights and Grant of Restricted Share Units
Toronto, March 31, 2022 – Canadian Manganese Company Inc. (the “Company”) (NEO: CDMN), which holds the Woodstock battery metal manganese property in New Brunswick, is pleased to report its financial results for the year ended December 31, 2021.
This news release should be read in conjunction with the Company’s audited financial statements and the associated management’s discussion and analysis (MD&A) for the year ended December 31, 2021, which are available on the Company’s website at www.CanadianManganese.com or under the Company’s profile at www.sedar.com.
In early 2021, the Company engaged Mercator Geological Services Limited to update its 2014 technical report on the Woodstock Project in an updated National Instrument 43-101 Technical Report, including preparation of a revised resource estimate, assuming the production of high purity manganese sulphate monohydrate (“HPMSM”) and updated economic assumptions.
On April 30, 2021, the Company completed its acquisition of Maximos Metals Corp. (“Maximos”) and a concurrent $6.2 million equity financing.
On May 5, 2021, the Company appointed Matthew Allas as President and Chief Executive Officer. Previously, Mr. Allas had been President and Chief Executive Officer of Maximos since 2018.
Throughout 2021, following the completion of the reassessment of strategic focus from the production of Electrolytic Manganese Metals (“EMM”) to HPMSM, including current pricing analysis and preliminary operating cost estimates, the Company worked with its consultants on the preparation of the updated Technical Report, and expanded its engagement efforts with stakeholders of the Woodstock Project, including the Government of New Brunswick and local First Nations communities.
In December 2021 the Company filed its updated Technical Report prepared in accordance with National Instrument 43-101, reporting an updated Mineral Resource Estimate for the Plymouth manganese-iron deposit at Woodstock. The new Mineral Resource estimate, which was prepared in accordance with the CIM Definition Standards for Mineral Resources and Reserves as amended in 2014 (CIM Standards 2014), now stands at 43,070,000 tonnes grading 10.01% manganese (utilizing a cut-off grade of 5% Mn) in the Inferred category.
The updated Technical Report noted that well defined opportunities to expand the current mineral resources exist in the immediate strike and dip extension areas of the mineralized zones that comprise the currently defined deposit and that the nearby, historically explored Hartford Mn-Fe deposit has good potential for definition of new mineral resources.
In November 2021 the Company commenced a 5,000 metre diamond drilling program on the Woodstock Project, following the Phase I recommendations of the Technical Report, which was substantially advanced during the first quarter of 2022.
On January 31, 2022, the Company’s shares were listed on the NEO Exchange and commenced trading under the symbol CDMN.
2021 FINANCIAL RESULTS
The consolidated financial statements of the Company for the year ended December 31, 2021 consolidate the accounts of Maximos and Spark Minerals Inc. (“Spark”) commencing April 30, 2021 and the accounts of Mongoose Mining Ltd. (“Mongoose”) (including Spark) commencing November 10, 2021.
The Company recorded no revenue in the years ended December 31, 2021 and 2020.
For the year ended December 31, 2021, the Company recorded a loss of ($14,271,924) compared to a loss of ($125,998) for the same period in 2020. The loss in the current year included a loss recognized in connection with the Maximos Acquisition of ($12,101,069), share based compensation of ($631,558), a Mongoose RTO listing cost of ($811,149), and $162,512 income from the reversal of flow-through premium.
Current assets at December 31, 2021 were $6,204,163, compared to $63,486 at December 31, 2020. Current liabilities were $1,380,170 at December 31, 2021, including accounts payable and accrued liabilities of $839,747 and a flow-through share premium liability of $540,423, compared to current liabilities of $321,979 at December 31, 2020.
During the year ended December 31, 2021, the Company completed a private placement of common shares and flow-through common shares raising a total of $6,203,176.
On November 10, 2021, Spark and Mongoose closed their previously announced reverse takeover transaction. Pursuant to the transaction, the Company’s indirect 53.1% equity interest in Spark was exchanged for 13,006,993 common shares of Mongoose, representing a 40.7% equity interest in Mongoose. Mongoose is listed on the Canadian Securities Exchange under the trading symbol MNG.
At December 31, 2021, the Company held exploration and evaluation assets with a carrying value of
$11,390,853, including $5,236,940 on the Woodstock Project, and Mongoose’s Cobequid property in Nova
Scotia with a carrying value of $6,153,912 (before a 59.3% non-controlling interest).
GRANT OF RESTRICTED SHARE UNITS (“RSU”s)
The Board of Directors has approved the grant, subject to NEO Exchange approval, of a total of 240,000 RSUs to an investor relations consultant pursuant to the RSU Plan.
About Canadian Manganese
CDMN is a Canadian mineral development company aiming to become a supplier of high-purity manganese metal products for the rechargeable battery industry. CDMN holds the Woodstock Project in New Brunswick.
For further information:
President and CEO
+1 647 338 3748
The NEO Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy of this release.
Additional information on CDMN is available at www.CanadianManganese.com.
Notice regarding forward-looking statements:
This news release includes forward-looking statements regarding CDMN, and its respective businesses, which may include, but are not limited to, statements with respect to the timing of additional assay results and the ability to provide a Mineral Reserve, the expected plan to become a supplier of high-quality manganese metal products. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections, or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited, risks regarding the mining industry, economic factors, the equity markets generally, risks associated with growth and competition as well as those risks and uncertainties identified and reported in the Company’s public filings under its SEDAR profile at www.sedar.com. Although CDMN has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and CDMN undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.