Scotiabank can nominate two individuals to KeyCorp’s board of directors, including a senior officer and an independent third-party director, pending KeyCorp’s consent. Credit: The Bold Bureau/ Shuttertsock.
Scotiabank has secured the approval from the Board of Governors of the US Federal Reserve System to proceed with its second phase of investment for an additional 10% of KeyCorp.
This move will increase Scotiabank’s stake in US regional lender KeyCorp to 14.9%.
In August 2024, Scotiabank disclosed that it plans to acquire a 14.9% stake in KeyCorp for around $2.8bn through a two-phase approach.
The initial phase, which helped Scotiabank secure a 4.9% stake in KeyCorp, was completed in August.
KeyCorp has a presence across 15 states and operates around 1,000 branches.
It provides a suite of services, including commercial and retail banking, in addition to investment advice.
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Scotiabank anticipates that this investment will positively impact its earnings per share in the first year following the completion of the additional investment.
Under the agreement, Scotiabank can nominate two individuals to KeyCorp’s board of directors, including a senior officer and an independent third-party director, pending KeyCorp’s consent.
Last month, Scotiabank appointed Steven Van Wyk to its board of directors, with immediate effect.
Scotiabank, a provider of financial services including personal and commercial banking, wealth management, private banking, corporate and investment banking, and capital markets, has assets worth nearly $1.4tn as of 31 July 2024.
The bank is listed on both the Toronto Stock Exchange and New York Stock Exchange.
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Court-appointed receivers and monitors who take control of companies now routinely bill about $1,100 an hour. These fees are considered senior claims in a bankruptcy or restructuring, so the advisers get their cheques before anyone else gets repaid.Adrien Veczan/The Canadian Press
In 2010, brothers Sam and Jasvir Johal started a used-truck dealership in Mississauga, and over the next decade their business grew at a blistering pace across Canada and the United States. As it expanded, Pride Group Holdings Inc. morphed into a conglomerate that offered new and used truck sales, leasing and financing, logistics, equipment maintenance, fuel sales and roadside rescue.
It was a wildly profitable enterprise. In 2021, amidthe pandemic’s supply chain bottlenecks, privately held Pride made $123-million in profit, then topped that the following year with a profit of $183-million.
And then it unravelled. Consumer spending on goods slowed after central banks started hiking interest rates, triggering what is known as a “freight recession.” By early 2024, Pride had defaulted on more than 40 loans, and in March, the company filed for creditor protection with $2.1-billion in liabilities.
It was exactly what an industry of Bay Street advisers had been waiting for.
Until recently, business prospects for financial experts and lawyers who specialize in corporate insolvencies and restructurings had been slow. Throughout the pandemic, federal financial supports and ultra-low interest rates kept companies afloat, so there wasn’t much work to go around.
Corporate insolvencies are now climbing quickly, up 57 per cent year-over-year for the twelve months ending Sept. 30, according to the Office of the Superintendent of Bankruptcy. But what advisers really pray for are complex, hairy deals like Pride’s downfall.
Since the trucking company filed for protection under the Companies’ Creditors Arrangement Act (CCAA), 49 advisory firms have been hired to provide legal, financial and restructuring advice in Canada and the U.S. – and more than 125 advisers are now working on the case.
The volume of work will keep them busy for years, but the fees are the real thrill. Top lawyers and financial advisers at Bay Street law and accounting firms now routinely charge around $1,300 an hour for this type of work, according to court filings reviewed by The Globe and Mail.
For context, bankruptcy fees are in the top quartile of all fees charged by law firms, said Chuck Chandler, the chief executive officer of Boston-based Valeo Partners, which tracks legal fees globally.
And it’s not just lawyers who benefit. Court-appointed receivers and monitors who take control of companies now routinely bill about $1,100 an hour. These firms include KSV Restructuring, FTI Consulting and Alvarez & Marsal, as well as divisions of the four big accounting firms – Ernst & Young, PricewaterhouseCoopers, Deloitte and KPMG.
The sweetener: These fees are considered senior claims in a bankruptcy or restructuring, so the advisers get their cheques before anyone else gets repaid.
How did the fees climb so high? It’s a confluence of factors, according to five sources, each of whom have spent decades working as legal advisers, board directors and/or investors who specialize in distressed companies. The Globe is not identifying them because they were not authorized to talk publicly – and speaking frankly could limit their colleagues’ chances of securing insolvency mandates.
To start, bankruptcies and restructurings are extremely technical operations, so expertise matters – and there isn’t a lot of it to go around. Bankruptcy law is a specialized world that requires years of training, and senior advisers can only handle so many files at one time. Often that means they aren’t angling forbusiness by cutting rates; sometimes the work just falls to whomever is free.
At the same time, a lender who wants to be repaid by a bankrupt company isn’t going to risk paying $600 an hour only to be outmanoeuvred in court by someone with more experience who charges $1,300 and is working for a rival creditor.
Wall Street’s influence also cannot be ignored. Because the U.S. economy is so much larger than Canada’s, companies that need insolvency advice there tend to have more assets, and those assets can be sold off to fund expensive advisory fees. After cryptocurrency exchange FTX collapsed, more than US$325-million was paid to advisers working on its wind-down in the first year alone.
And because Wall Street fees are so lucrative, Bay Street firms quietly argue they can’t charge too much of a discount relative to their American peers lestthey risk a brain drain of experts to the U.S. – something that took hold early in the pandemic.
Technically, judges are supposed to serve as a check and balance on the system. Receiverships and restructuring under creditor protection are public endeavours, so judges must approve fees for monitors, receivers and advisers.
Yet they rarely, if ever, say no to fee requests, according to the sources. “Nobody has any control. Not even the judge,” said one.
In the U.S., for instance, bankruptcy advisers learned long ago to shop their cases around to different judicial districts. “There used to be judges who imposed fee caps. Philadelphia was famous for US$200-an-hour limits,” said Lynn LoPucki, a law professor at the University of Florida who has written books about high feesin the bankruptcy process. “The result was simply that Philadelphia didn’t get any cases.”
There is also an unspoken symbiosis between judges and insolvency advisers. The judges who approve the fees often come from private practice themselves – and sometimes go back to it after retiring from the bench.
Ontario Justice Frank Newbould used to be the head of the commercial list in Toronto, which hears complex insolvency and restructuring cases such as the cross-border Nortel Networks bankruptcy litigation, during which professional fees topped $755-million worldwide. After retiring in 2017, Mr. Newbould went back to private practice and occasionally pops up on insolvency matters. His hourly rate in 2021: $1,250, according to a court filing.
More recently, Justice Thomas McEwen, who spent 14 years on the Ontario Superior Court and was also head of the commercial list before retiring in 2023, has set up his own advisory firm, McEwen Resolutions, and has been hired in the Pride Group restructuring as a mediator. (Pride’s advisers have not yet requested fee approvals, so hourly rates aren’t disclosed.)
Mr. McEwen and Mr. Newbould both declined to comment for this story.
At times, the expertise these advisers provide saves companies. Montreal-based Groupe Dynamite Inc., which owns the Garage and Dynamite clothing banners, sought creditor protection during the pandemic but has since roared back to life and just went public on the Toronto Stock Exchange.
But sometimes, a company is too damaged to carry on, which means its advisers are feasting on a carcass.
In Pride’s case, the Johal brothers initially hoped to restructure and get back to business stronger than ever, but once the advisers got to work, they realized most of the company wasn’t salvageable. In August, an Ontario judge approved a wind-down.
The same was true for private debt manager Bridging Finance Inc., which had $2.1-billion in assets when it was thrown into receivership in early 2021. The circumstances of its downfall are different than Pride’s – the Ontario Securities Commission alleged fraud by members of Bridging’s leadership team, and a tribunal recently found them guilty – but Bridging was also wound down, and its 26,000 investors, many of whom were retail buyers, will lose an estimated two-thirds of their money.
The government of Canada sold its roughly 6% stake in Air Canada (AC, Montréal Trudeau) on December 11-12, The Globe and Mail newspaper reported.
Ministry of Finance spokeswoman Marie-France Faucher had already said in September that the government did not intend to be a long-term shareholder in the flag carrier. In April 2021, Ottawa invested CAD500 million Canadian dollars (USD398 million at the time) in the company’s Class B Voting shares, paying about CAD23.18 apiece. It became the airline’s biggest investor as part of a bailout package to improve the company’s finances during the COVID-19 pandemic.
According to The Globe and Mail, the government has now sold its stake at about CAD25 a share (USD17.60).
Air Canada was not immediately available for comment. The airline did not notify the transaction to the Toronto Stock Exchange.
In April 2021, as part of the support package, Air Canada had optional access to interest-bearing loans worth up to CAD5.3 billion (USD4.2 billion) through several separate credit facilities. It only used a fraction of these loans and withdrew from further financial support from the authorities in November 2021.
The loans and investment included a number of commitments, including offering refunds, protecting jobs, restarting domestic air services to remote communities, and remaining a customer of Canada’s aerospace sector.
Air Canada reported CAD2.3 billion (USD1.6 billion) in net profit for the third quarter of 2024, on operating revenue of CAD6.12 billion (USD4.3 billion).
Fairfax, headquartered in Toronto, is a conglomerate with a primary focus on property and casualty (P&C) insurance, reinsurance and investment management. Credit: MacroEcon/Shutterstock.
Fairfax Financial has finalised the acquisition of the remaining 13.8% stake in Brit from OMERS, the pension plan for Ontario’s municipal employees.
The transaction, valued at approximately $383m (C$546.1m), brings Fairfax’s ownership of Brit to 100%, which held 86.2% by acquiring the interest of OMERS.
OMERS, with a history spanning more than 60 years, has been providing secure lifetime pensions to its members in Ontario.
The pension plan boasts a team of investors and professionals, with a net asset value of $133.6bn as of 30 June 2024, marking it as one of Canada’s largest defined benefit pension plans.
Recently, Brit and Ki announced that Ki will begin operating as an independent entity within the Fairfax Group from 1 January 2025. Ki, established by Brit in 2020 and running as Syndicate 1618 at Lloyd’s since 2021, is recognised as the fully digital follow syndicate in the industry.
Fairfax, headquartered in Toronto, is a conglomerate with a primary focus on P&C insurance, reinsurance and investment management.
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In the third quarter of 2024, Fairfax reported net earnings of $1.03bn, equating to $42.62 net earnings per diluted share after preferred share dividends.
This performance was largely due to increased adjusted operating income of $1.13bn and net gains on investments.
As of 30 September 2024, the company’s book value per basic share stood at $1,033.18, a notable increase from $939.65 on 31 December 2023, even after accounting for a common share dividend of $15 paid earlier in the year.
Earlier this year, Fairfax acquired, through its insurance company subsidiaries, 271,100 common shares of Ensign Energy Services for an aggregate purchase price of approximately C$657,092 through the facilities of the Toronto Stock Exchange.
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ISS cites “significant premium” and “certain and immediate value” in endorsing the Arrangement
Basis for Glass Lewis endorsement includes recognition of “considerable” negotiation process
STEP Shareholders are encouraged to vote in advance of the proxy deadline of December 17, 2024 at 10:00 a.m. (Mountain time)
The Canada Post service disruption may cause Canadian STEP Shareholders not to receive physical Meeting materials. STEP Shareholders who have questions or need assistance in voting should contact Laurel Hill Advisory Group by telephone at 1-877-452-7184 (North American Toll Free) or 1-416-304-0211 (Outside North America), or by email at assistance@laurelhill.com
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CALGARY, Alberta — STEP Energy Services Ltd. (“STEP” or the “Company“) is pleased to announce that both leading independent proxy advisors, Institutional Shareholder Services Inc. (“ISS“) and Glass Lewis & Co. (“Glass Lewis“), have issued recommendations that shareholders of STEP (“STEP Shareholders“) vote FOR the previously announced plan of arrangement (the “Arrangement“) with 2659160 Alberta Ltd. (the “Purchaser“) and the limited partnerships comprising ARC Energy Fund 8 (a private equity fund advised by ARC Financial Corp.) (collectively, “ARC“). Under the terms of the Arrangement, STEP Shareholders will receive $5.00 in cash for each share of STEP (the “STEPShares“) owned, a premium of approximately 40.4% to the closing price of the STEP Shares of $3.56 on the Toronto Stock Exchange on November 1, 2024, being the last trading day prior to the execution of the arrangement agreement dated November 3, 2024 (the “Arrangement Agreement“).
In issuing its endorsement of the Arrangement to clients, ISS highlighted the “significant premium”, the fact the special committee (the “Special Committee“) of the STEP board of directors was able to negotiate an increase in the consideration from the original offer, and that the “valuation appears credible, and the offer represents the Company’s highest trading price since Feb. 1, 2023 (and is above the midpoint of the [discounted cash flow] analysis)”.
As an independent proxy advisory firm, ISS has approximately 3,400 clients including many of the world’s leading institutional investors who rely on ISS’ objective and impartial analysis to make important voting decisions. Glass Lewis’ analysis of the transaction focused on the arm’s length negotiation process undertaken by the Special Committee that yielded multiple offers from ARC and which considered the Company’s standalone prospects, and found the Arrangement to be in the interests of STEP and STEP Shareholders.
Glass Lewis is an independent proxy advisor to institutional investors, covering 30,000 shareholder meetings each year, across approximately 100 global markets. Their customers include the majority of the world’s largest pension plans, mutual funds, and asset managers who collectively manage over $40 trillion in assets.
CANADA POST SERVICE DISRUPTION
Due to the Canada Post service disruption, STEP Shareholders in Canada may not have received physical materials for the special meeting of STEP Shareholders (the “Meeting“). Whether or not you have received the physical mailing, you can still vote your STEP Shares. Materials related to the Meeting have been posted on the Company’s website at https://www.stepenergyservices.com/special-meeting and on STEP’s SEDAR+ profile at http://sedarplus.ca.
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Many STEP Shareholders can submit their vote quickly and easily over the phone with STEP’s proxy solicitation agent, Laurel Hill Advisory Group (“Laurel Hill“), and Laurel Hill can otherwise provide voting assistance and answer shareholder questions about the Arrangement. STEP Shareholders can reach Laurel Hill by telephone at 1-877-452-7184 (North American Toll Free) or 1-416-304-0211 (Outside North America), or by email at assistance@laurelhill.com.
Further, STEP Shareholders should avoid submitting their vote via mail. STEP Shareholders can vote by utilizing one of the alternative methods below:
VOTING METHOD
BENEFICIAL SHAREHOLDERS
REGISTERED SHAREHOLDERS
Shares held with a broker, bank, or other intermediary and have a 16-digit control number
Shares held in own name and represented by a physical certificate or DRS
Call the toll-free number listed on your Voting Instruction Form (VIF) and vote using the control number provided therein.
FAX: 416-595-9593
MEETING INFORMATION
The Meeting will be held virtually on December 19, 2024 at 10:00 a.m. (Mountain time) at https://virtual-meetings.tsxtrust.com/en/1729 (Password: step2024). STEP Shareholders are encouraged to vote in advance of the Meeting.
The deadline for STEP Shareholders to submit votes by proxy is Tuesday, December 17, 2024 at 10:00 a.m. (Mountain time).
Based on proxies submitted, if the vote were to be held today it would fail based on achieving less than a majority of the minority shareholder approval. ARC has advised STEP that it does not intend to increase the consideration to be paid from $5.00 per STEP Share or support any alternative transaction to acquire STEP Shares.
SHAREHOLDER QUESTIONS AND VOTING ASSISTANCE
STEP Shareholders who have questions or need assistance in voting should contact Laurel Hill Advisory Group by telephone at 1-877-452-7184 (North American Toll Free) or 1-416- 304-0211 (Outside North America), or by email at assistance@laurelhill.com.
ABOUT STEP
STEP is an energy services company that provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions. Our combination of modern equipment along with our commitment to safety and quality execution has differentiated STEP in plays where wells are deeper, have longer laterals and higher pressures. STEP has a high-performance, safety-focused culture and its experienced technical office and field professionals are committed to providing innovative, reliable and cost-effective solutions to its clients.
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Founded in 2011 as a specialized deep capacity coiled tubing company, STEP has grown into a North American service provider delivering completion and stimulation services to exploration and production companies in Canada and the U.S. Our Canadian services are focused in the Western Canadian Sedimentary Basin, while in the U.S., our fracturing services are focused on the Permian basin and our coiled tubing services are focused on the Permian and Eagle Ford in Texas, the Uinta Piceance, and Niobrara-DJ basins in Colorado and the Bakken in North Dakota.
Our four core values; Safety, Trust, Execution and Possibilities inspire our team of professionals to provide differentiated levels of service, with a goal of flawless execution and an unwavering focus on safety.
Forward-Looking Statements:
This news release contains “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws (collectively, “forward-looking statements”). In some cases, forward-looking statements are identifiable by the terminology used, such as “may,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “could,” “estimate,” “continue,” or similar expressions or the negative of such expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances are considered forward-looking statements. Forward-looking statements in this news release, include, among other things, references, expressed or implied, to: statements and implications about the reasons for, and the anticipated benefits of, the Arrangement for the Company and the STEP Shareholders; the anticipated date for the holding of the Meeting; the timing and effects of the Arrangement; the solicitation of proxies by the Company; and other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts.
Forward-looking statements are subject to known and unknown risks and uncertainties and other factors, some beyond the control of STEP, which could cause actual events, results, expectations, achievements or performance to differ materially. The risks and uncertainties related to the Arrangement include, but are not limited to: the possibility that the Arrangement will not be completed on the terms and conditions, or on the timing, currently contemplated, and that it may not be completed at all, due to a failure to obtain or satisfy, in a timely manner or otherwise, the necessary STEP Shareholder and court approvals and other conditions to the completion of the Arrangement or for other reasons; failure to realize the expected benefits of the Arrangement; the failure to complete the Arrangement, which could negatively impact the price of the STEP Shares or otherwise affect the business of the Company; the dedication of significant resources to pursuing the Arrangement and the restrictions imposed on the Company while the Arrangement is pending; the uncertainty surrounding the Arrangement could adversely affect the Company’s retention of customers, business partners and key employees; the occurrence of a material adverse effect leading to the termination of the Arrangement Agreement; the payment of a fee by the Company to the Purchaser if the Arrangement Agreement is terminated in certain circumstances; general economic conditions; and other risks and uncertainties. The foregoing list of risks and uncertainties is not exhaustive.
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Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date made. The forward-looking statements contained in this news release represents the Company’s expectations as of the date of this news release (or as the date they are otherwise stated to be made) and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements.
For further information: Steve Glanville President & Chief Executive Officer Telephone: (403) 457-1772 Web: stepenergyservices.com
Shareholders: Laurel Hill Advisory Group North America (toll-free): 1-877-452-7184 Outside North America: 1-416-304-0211 Email: assistance@laurelhill.com.
The content in this section is supplied by GlobeNewswire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content.
ROUYN-NORANDA, Quebec, Dec. 16, 2024 (GLOBE NEWSWIRE) — Radisson Mining Resources Inc. (TSX-V: RDS, OTCQB: RMRDF) (“Radisson” or the “Company”) is pleased to announce results from an important diamond drill hole at its 100%-owned O’Brien Gold Project (“O’Brien” or the “Project”) located in the Abitibi region of Québec.
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OB-24-337 is an exploratory hole drilled to a depth of 1,700 metres, the deepest hole ever drilled at the Project and the first hole drilled directly below the historic O’Brien Mine workings. At approximately 1,500 metres vertical depth it intersected sheared and mineralized rocks of the Piché Group, the dominant host rocks for O’Brien gold mineralization, and returned 242.0 g/t gold (“Au”) over 1.0 metre within a mineralized interval that averaged 31.24 g/t Au over 8.0 metres.
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Matt Manson, President and CEO, commented: “Following our “Jewellery Box” re-discovery news of December 9, 2024, we are taking the unusual step of releasing assays from another single drill hole today because of its particular significance to the future of the O’Brien Gold Project. Hole OB-24-337 was intended to be a pilot hole testing whether the Project’s host geology extended below the historic mine and to be a platform for future wedging and directional drilling. The fact that this hole intersected mineralization and visible gold at such a high grade greatly exceeded our expectations. Recall that approximately 75% of our existing Mineral Resource is defined at depths above 600 metres. On September 24th we announced that drill hole OB-24-324 had intersected 27.61 g/t Au over 6.0 metres at 1,100 metres vertical depth. Now, we have new gold mineralization in a classic O’Brien setting at 1,500 metres vertical depth, a full 500 metres below the deepest workings of the old mine. It is clear that O’Brien gold mineralization is extensive at depth, implying significant future upside potential for the Project.”
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Figure 1: Visible Gold in Drill Hole OB-24-337
Figure 2: Long Section in Oblique View of Gold Vein Mineralization and Mineral Resources at the O’Brien Gold Project, with Drill Hole OB-337 and Other Recent Deep Drill Holes Illustrated.
Table 1: Detailed Assay Results from Drill Hole OB-24-337
DDH
Zone
From (m)
To (m)
Core Length (m)
Au g/t – Uncut
Host Lithology
OB-24-337
O’Brien Mine
1,507.6
1,508.6
1.0
5.57
POR-S
1,517.7
1,525.7
8.0
31.24
POR-S
Including
1,517.7
1,518.7
1.0
242.00
POR-S
1,550.5
1,552.0
1.5
2.38
V3-CEN
1,610.5
1,611.9
1.4
5.49
V3-N
1,660.5
1,662.7
2.3
3.78
S3P
Notes on Calculation of Drill Intercepts: The O’Brien Gold Project March 2023 Mineral Resource Estimate (“MRE”) utilizes a 4.50 g/t Au bottom cutoff, a US$1600 gold price, a minimum mining width of 1.2 metres, and a 40 g/t Au upper cap on composites. Intercepts from drill hole OB-24-337 presented in Table 1 are calculated with a 1.00 g/t bottom cut-off over a minimum 1.0 metre core length so as to illustrate the frequency and continuity of mineralized intervals within which high-grade gold veins at O’Brien are developed. Intercepts presented in the deep drill hole compilation in Table 2 are calculated with a 3.00 g/t Au bottom cut-off, representing the lower limit of cut-off sensitivity presented in the March 2023 Mineral Resource Estimate. Sample grades are uncapped. True widths, based on depth of intercept and drill hole inclination, are estimated to be 30-70% of core length. Lithology Codes: PON-S3: Pontiac Sediments; V3-S, V3-N, V3-CEN: Basalt-South, North, Central; S1P, S3P: Conglomerate; POR-S, POR-N: Porphyry South, North; TX: Crystal Tuff; ZFLLC: Larder Lake-Cadillac Fault Zone
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Table 2: Compilation of All Deep Drill Holes Recently Published (see Radisson News Releases Dated September 24, 2024 and October 30, 2024. See “Notes on Calculation of Drill Intercepts”)
DDH
Zone
From (m)
To (m)
Core Length (m)
Au g/t – Uncut
Host Lithology
OB-24-322
Trend #1
1,149.2
1,150.7
1.5
5.25
PON-S3
1,164.8
1,166.2
5.2
8.75
V3-S
including
1,164.8
1,167.6
1.4
27.20
V3-S
1,215.6
1,219.8
4.2
3.20
V3-S
1,234.9
1,236.4
1.5
5.16
V3-S
OB-24-324
Trend #1
1,178.8
1,184.8
6.0
27.61
S1P
including
1,182.6
1,183.7
1.1
102.00
S1P
1,197.5
1,199.0
1.5
4.64
S1P
1,231.0
1,241.0
10.0
6.83
POR-N/V3-N
including
1,231.0
1,232.5
1.5
40.20
POR-N
1,249.0
1,250.4
1.4
3.78
S3P
OB-23-324W1
Trend #1
1,139.9
1,152.3
12.4
5.48
POR-S
Including
1,141.4
1,145.8
4.4
12.10
POR-S
1,164.3
1,168.5
4.2
8.02
S1P
1,200.0
1,202.9
2.9
3.31
POR-N
OB-24-323
Trend #0
795.0
796.0
1.0
11.85
PON-S3
903.9
914.8
10.9
3.34
V3-S
Including
903.9
905.4
1.5
13.90
V3-S
933.5
934.7
1.2
6.21
V3-CEN
993.4
1,001.6
8.2
3.51
V3-N/S3P
Including
995.4
996.9
1.5
9.93
V3-N
OB-24-337
O’Brien Mine
1,507.6
1,508.6
1.0
5.57
POR-S
1,517.7
1,525.7
8.0
31.24
POR-S
Including
1,517.7
1,518.7
1.0
242.00
POR-S
1,610.5
1,611.9
1.4
5.49
V3-N
1,660.5
1,662.7
2.3
3.78
S3P
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Notes Deep Drill Holes OB-24-321 and OB-24 324W2 did not return any intercepts >3 g/t Au
Figure 3: Cross Section of the Historic O’Brien Mine Locating Drill Hole OB-24-337
Recent Deep Drilling Results
Today’s results from deep drill hole OB-24-337 are from the third batch of drill results released since September that have shown high grade O’Brien gold mineralization within Piché Group rocks well below the base of the existing Mineral Resource Estimate (“MRE”). Seven deep drill holes or drill hole wedges have been completed since this time. Six of the seven returned instances of visible gold and five of the seven returned drill intercepts well above the Project’s grade cutoff in the March 2023 MRE. The holes were drilled at northerly declinations with initial inclinations of between -65 and -85 degrees, followed by angling to provide a high angle of incidence with the southerly dip of the Piché Group rocks and vein mineralization. Estimated true widths of drill intercepts at the point of contact with mineralization is estimated to be 30-70% of core length.
Deep drill results since September 2024, summarized in Table 2, have now included:
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OB-24-322 with 8.75 g/t Au over 5.2 metres, including 27.20 g/t Au over 1.0 metre;
OB-24-324 with 27.61 g/t Au over 6.0 metres, including 102.0 over 1.0 metre, and 6.83 g/t Au over 10.0 metres including 40.20 g/t Au over 1.0 metre;
OB-24-324W1 with 5.48 g/t Au over 12.4 metres, including 12.10 g/t Au over 4.0 metres;
and now:
OB-24-337 with 31.24 g/t Au over 8 metres including 242.0 g/t Au over 1.0 metre;
The frequency and grade of intercepts returned by these deep drill holes, as well as the observed host geology, its deformation, the style of alteration, and the mineralogical association of the gold mineralization, are all familiar from the historical O’Brien mine and consistent with the modern geological model developed at shallower depths. The implication is that characteristic O’Brien style gold mineralization is extensive at depth, well below the level of the historic mine workings and the current MRE.
Gold Mineralization at O’Brien
Gold mineralizing quartz-sulphide veins at O’Brien occur within a thin band of interlayered mafic volcanic rocks, conglomerates, and porphyric andesitic sills of the Piché Group occurring in contact with the east-west oriented Larder Lake-Cadillac Break (“LLCB”). Gold, along with pyrite and arsenopyrite, is typically associated with shearing and a pervasive biotite alteration, and developed within multiple Piché Group lithologies and, occasionally, the hanging-wall Pontiac and footwall Cadillac meta-sedimentary rocks.
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As mapped at the historic O’Brien mine, and now replicated in the modern drilling, individual veins are generally narrow, ranging from several centimetres up to several metres in thickness. Multiple veins occur sub-parallel to each other, as well as sub-parallel to the Piché lithologies and the LLCB. Individual veins have well-established lateral continuity, with near-vertical, high-grade shoots developed over significant lengths. The historic O’Brien mine produced over half a million ounces of gold from such veins and shoots at an average grade exceeding 15 g/t and over a vertical extent of at least 1,000 metres.
Based on drilling complete to the end of 2022, the Project has estimated Indicated Mineral Resources of 0.50 million ounces (1.52 million tonnes at 10.26 g/t Au), with additional Inferred Mineral Resources of 0.45 million ounces (1.60 million tonnes at 8.66 g/t Au). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Current exploration is focussed on delineating well developed vein mineralization to the east of the historic mine, with additional high-grade shoots becoming evident in the exploration data over what has been described as a series of repeating trends (“Trend #s 0 to 5”).
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Table 3: Drill Hole Collar Information for Holes contained in this News Release
DDH
Zone
Easting
Northing
Azimuth
Dip
Hole Length (m)
OB-24-321
Trend #1
693952
5345216
10.0
-77
1065
OB-24-322
Trend #1
694197
5345102
0.0
-85
1339
OB-24-323
Trend #0
693953
5345212
335.0
-79
1014
OB-24-324
Trend #1
694219
5345107
343.0
-80
1256
OB-24-324W1
Trend #1
694209
5345402
9.3
-64
290
OB-24-324W2
Trend #1
694202
5345348
6.6
-65
147
OB-24-337
O’Brien Mine
693700
5345070
346.0
-80
1695
QA/QC
All drill cores in this campaign are NQ in size. Assays were completed on sawn half-cores, with the second half kept for future reference. The samples were analyzed using standard fire assay procedures with Atomic Absorption (AA) finish at ALS Laboratory Ltd, in Val-d’Or, Quebec. Samples yielding a grade higher than 10 g/t Au were analyzed a second time by fire assay with gravimetric finish at the same laboratory. Mineralized zones containing visible gold were analyzed with metallic sieve procedure. Standard reference materials, blank samples and duplicates were inserted prior to shipment for quality assurance and quality control (QA/QC) program.
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Qualified Person
Disclosure of a scientific or technical nature in this news release was prepared under the supervision of Mr. Richard Nieminen, P.Geo, (QC), a geological consultant for Radisson and a Qualified Person for purposes of NI 43-101. Mr. Nieminen is independent of Radisson and the O’Brien Gold Project.
Radisson Mining Resources Inc.
Radisson is a gold exploration company focused on its 100% owned O’Brien Gold Project, located in the Bousquet-Cadillac mining camp along the world-renowned Larder-Lake-Cadillac Break in Abitibi, Québec. The Bousquet-Cadillac mining camp has produced over 25 million ounces of gold over the last 100 years. The Project hosts the former O’Brien Mine, considered to have been Québec’s highest-grade gold producer during its production. Indicated Mineral Resources are estimated at 0.50 million ounces (1.52 million tonnes at 10.26 g/t Au), with additional Inferred Mineral Resources estimated at 0.45 million ounces (1.60 million tonnes at 8.66 g/t Au). Please see the NI 43-101 “Technical Report on the O’Brien Project, Northwestern Québec, Canada” effective March 2, 2023, Radisson’s Annual Information Form for the year ended December 31, 2023 and other filings made with Canadian securities regulatory authorities available at www.sedar.com for further details and assumptions relating to the O’Brien Gold Project.
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For more information on Radisson, visit our website at www.radissonmining.com or contact:
This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections, and interpretations as at the date of this news release. Forward-looking statements including, but are not limited to, statements with respect to planned and ongoing drilling, the significance of drill results, the ability to continue drilling, the impact of drilling on the definition of any resource, the ability to incorporate new drilling in an updated technical report and resource modelling, the Company’s ability to grow the O’Brien project and the ability to convert inferred mineral resources to indicated mineral resources. Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements Forward-looking information is based on estimates of management of the Company, at the time it was made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to the drill results at O’Brien; the significance of drill results; the ability of drill results to accurately predict mineralization; the ability of any material to be mined in a matter that is economic. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the parties cannot assure shareholders and prospective purchasers of securities that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company believes that this forward-looking information is based on reasonable assumptions, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law. These statements speak only as of the date of this news release.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Three photos accompanying this announcement are available at:
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