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Enter Symbol
or Name
USA
CA



Red Pine Exploration Inc
Symbol RPX
Shares Issued 249,607,795
Close 2014-10-22 C$ 0.01
Market Cap C$ 2,496,078
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Red Pine Exploration to buy Kipawa silica property

2014-10-23 06:04 ET - News Release

Mr. Quentin Yarie reports

RED PINE EXPLORATION ANNOUNCES ACQUISITION OF QUEBEC SILICA PROPERTY

Red Pine Exploration Inc. has entered into an agreement, subject to certain terms and conditions, to acquire the Kipawa silica property located approximately 15 kilometres east of Temiscaming, Que.

Quentin Yarie, president and chief operating officer, commented: "We continue to evaluate opportunities that will increase shareholder value and acquiring the Kipawa silica property will be a good complement to our project portfolio. Silica belongs to a group of materials known as industrial minerals, which includes such minerals as lithium, graphite and vanadium. Many of these minerals, including silica, gained prominence in recent years as more and more countries consider them strategic materials. Silica is a rapidly growing commodity and represents a new and exciting opportunity for Red Pine. We hope to be strategically positioned to capitalize on the future demand for high-purity silica."

Silica background information

Silica is most commonly found in nature as quartz. It is used in foundries, the aluminum industry and glass factories as well as in the production of high-tech components. Although quartz is the second-most abundant mineral on earth, high-purity quartz is rare. Demand for high-purity silica (used to create fused quartz for high-tech manufacturing such as solar panels, semiconductors, LCD displays and lithium batteries, and the rest) has risen and this trend is projected to continue as it is considered a premium product in short supply. Tightening supply due to current levels of production in Brazil and China have contributed to price gains. The increasing demand will sustain these gains and support a further rise in silicon prices through to 2017 (source: CRU) (source: Silicon Market Outlook Report 2014).

The commercial importance of this material is perhaps best illustrated by FerroAtlantica, one of the largest silicon metal producers in the world, which recently announced that it is planning to invest nearly $400-million in the construction of a silicon metal plant in Port Cartier, Que. (There has been no contact between Red Pine Exploration and FerroAtlantica. Further, there is absolutely no guarantee that the Kipawa property would ever produce any saleable silicon metal product or that FerroAtlantica would ever purchase such product.)

Kipawa silica project

The Kipawa property consists of 68 claims totalling 4,012 hectares in the Gendreau, Campeau and Reclus townships of Quebec. The property contains a quartzite unit that is part of the Kipawa formation. Recent surficial maps show that the quartzite unit covers an area within the claim blocks of approximately 1.9 square kilometres and it could potentially contain high-purity quartz. (The potential quantity and grade are conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.)

Kipawa silica project acquisition terms

The consideration for the acquisition is the issuance of 12.5 million shares of the company at the deemed price of five cents and the grant of a 2-per-cent net smelter returns royalty to the property vendor, Fiducie Ananke. One-half, or 1 per cent, of the NSR may be bought back for $500,000 and the remaining 1 per cent for $1-million. No finders' fees are payable on this property transaction, and the vendor is at arm's length to the company. Closing is subject to completion of a minimum financing, TSX Venture Exchange approval and certain other customary closing conditions.

Qualified person

Quentin Yarie, PGeo, is the qualified person in regard to the technical data contained within this news release and has approved the scientific and technical content of this news release.

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