Cloudbreak Discovery PLC Corporate Update (8218E)

TIDMCDL

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 [e-mail] 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        Tel: [phone] 
  PLC 
                             Kyler Hardy, CEO          [e-mail] 
 
 Novum Securities            Tel: [phone] 
  (Financial Adviser) 
                             David Coffman 
 
 Shard Capital Partners      Tel: [phone] 
  (Broker) 
                              Damon Heath / Isabella 
                              Pierre 
 
 
 BlytheRay                   Tel: [phone]     [e-mail] 
  (Financial PR/IR-London) 
                             Tim Blythe 
                              Megan Ray 
 
 Stellium Services           Tel: [phone]        [e-mail] 
  (Investor Relations)        1205 
 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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November 01, 2022 03:00 ET (07:00 GMT)