Rhyolite Appoints Fred Stanford CEO and Director | 2021-09-07 | Press Releases
Company Expands Strategy to Include Development of Mining Assets Using Muckahi’s Innovative Mining System
Toronto, Ontario – (Newsfile Corp. – September 7, 2021) – Rhyolite Resources Ltd. (TSXV: RYE) (the âCompanyâ or âRhyoliteâ) is pleased to announce the appointment of Fred Stanford as Chief Executive Officer and Director.
Mr. Stanford is a mining executive with 40 years of experience in the mining industry. Prior to joining Rhyolite, Mr. Stanford was President and CEO of Torex Gold Resources Inc. (âTorex Goldâ) from 2009 to 2020, and Executive Chairman from mid-2020 to mid-2021.
Tony Chedraoui, the new chairman of the board of directors of Rhyolite and founder, CEO and CIO of Tyrus Capital, said: This wide range of skills is exactly what Rhyolite needs and the board is very happy to welcome Fred as CEO to lead the company through a growth strategy.
“I personally met Fred over 10 years ago when Tyrus Capital was the primary investor in the creation of Torex Gold and was instrumental in funding the $ 150 million for the acquisition of the Morelos gold property. from Teck Resources. “
âTyrus Capital has been Torex Gold’s largest investor for almost 10 years, supporting Fred as CEO. During this time, Fred was responsible for creating a growth-oriented mid-level gold miner with production costs in the lowest quartile while delivering industry-leading safety performance. . He also led the implementation of a state-of-the-art ESG integration process, which has proven successful in a socially challenging region of Mexico. “
Innate innovator, Fred has also led the development of the innovative Muckahi Mining System (“Muckahi”) for underground hard rock mines. Muckahi has the potential to reduce underground mining capital expenditures by up to $ 30. %, the time between investment and income up to 80% and greenhouse gas emissions from underground mines up to 95%. “
âThe current exploration strategy for new Rhyolite deposits will be broadened to include the development of mining assets that are particularly suited to the benefits of Muckahi. The Company will seek to acquire the assets that it is developing. When ownership is not practical, other trade deals will be made. As Muckahi’s benefits are also applicable to the extraction of any metal mined from an underground hard rock mine, Rhyolite will be “metal agnostic” as it seeks high yielding mining assets for acquisition and development. This will include assets containing the âbattery metalsâ essential for future increased electrification as the world moves away from fossil fuels. These are exciting times for Rhyolite, and we all look forward to a future of strong ROI growth. “
Fred Stanford, new CEO, said: âThis is a great opportunity to build a mining company from scratch. A company that leverages the technical advantages of the Muckahi mining system to deliver potentially higher returns on investment. A company that also leverages an ESG Advantage through the application of systems leadership theory to build productive relationships with all stakeholders, including governments and communities near future mines. technical and ESG advantage, we have the potential to build a modern mining company that respects the key interests of shareholders and all other stakeholders; I am excited to begin.”
Richard Graham has resigned from his position as director, president and chief executive officer of the Company. Rhyolite’s board of directors and management team thank him for his leadership and valuable contributions since 2015.
Rather than the conventional approach of using equipment on rubber tires that operate on the ground of the tunnels, the Muckahi mining system uses equipment that operates on an overhead monorail to dig tunnels and perform all transport functions. The monorail network can be salvaged and reused as mining retreats from depleted areas. There are several advantages to using a monorail network. These advantages include the ability to operate in tunnels four times steeper than those used for equipment on tires. A tunnel that is four times steep is only Â¼ the length to achieve the same drop. This results in significant cost savings and a reduction in the time required to access mineral deposits. Other advantages include smaller tunnels and two-way traffic in the tunnels for efficient and predictable logistics. Up to 95% reduction in underground greenhouse gas emissions is also possible since Muckahi equipment is fully electric. Automation is also relatively straightforward due to the monorail eliminating the need to steer, which adds considerable complexity to the automation of underground wheeled equipment where GPS is not available because it does not penetrate through rock, etc. The list of benefits is long.
With the onset of the dry season, the Company began to advance exploration activities on the Brothers and Suku Passi properties in Suriname. At this early stage, fieldwork focuses on setting up the necessary infrastructure such as camps and associated services. Later in this dry season, field sampling work and preparations for diamond drilling will begin.
For more information on the Muckahi mining system, including a descriptive video, visit the Rhyolite website at www.rhyoliteresources.com.
The Muckahi mining system (including improvements) is currently owned by Torex Gold and licensed to Muckahi Inc. (âMuckahi Coâ), a company controlled by Mr. Stanford. Mr. Stanford has agreed to transfer all of the shares of Muckahi Co (the âMuckahi Sharesâ) to the Company in consideration for 9.5 million common shares of the Company (the âCounterpart Sharesâ), of which 1, 0 million Common Shares will be delivered to Mr. Stanford on the closing date of the transfer of Muckahi Shares (the âClosing Dateâ) and the remaining 8.5 million Common Shares will be escrowed. The escrowed shares will be released from escrow to Mr. Stanford in installments (1.0 million, 2.0 million, 2.0 million and 3.5 million, respectively) over a period of four years, on each anniversary of 12 months following the closing date, subject to the condition that Mr. Stanford remains involved in the Company other than as a shareholder on each anniversary date. The transfer of Muckahi shares and the issuance of counterpart shares are subject to the prior approval of the TSX Venture Exchange.
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 release.
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CAUTION REGARDING FORWARD-LOOKING INFORMATION
This press release includes certain “forward-looking statements” under applicable Canadian securities laws. Forward-looking statements include, without limitation, statements regarding the completion of the acquisition of Muckahi, the results of Rhyolite’s growth strategy and return on investment, the benefits of the Muckahi mining system, the development of mining assets that are particularly sensitive to the benefits of the Muckahi mining system, the acquisition and / or trade agreements of mining assets, and the application of systems leadership theory. Forward-looking statements are necessarily based on a number of estimates and assumptions which, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors that may cause actual results and future events differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive regulatory approvals; the ability to attract funding on these terms or not at all; the price of the goods; and the results of current exploration. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
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