Deer Horn Acquires Option on Former First Solar Tellurium Property in Historic Colorado Mining District
Vancouver, BC, Canada, March 11, 2021 – Deer Horn Capital Inc. (CSE: DHC) (the “Company” or “Deer Horn Capital”), reports the Company has completed an agreement with Colorado Klondike LLC to acquire a purchase option on the Colorado Klondike (Klondike) tellurium-gold-silver property located in south-central Colorado. The property lies in the center of the state's Findley Gulch mining district near the southern periphery of the Bonanza district, a substantial historic producer of silver, gold and base metals.
Klondike was held previously by First Solar Inc., one of the world’s largest solar manufacturers, as a potential primary source of tellurium for the company’s cadmium-telluride (CdTe) solar panels. Colorado Klondike LLC, operated by former First Solar management, acquired the property from First Solar in 2013 when the manufacturer terminated its worldwide raw materials exploration program.
“We’re thrilled to add the Klondike Property to our tellurium portfolio,” said Deer Horn President and CEO Tyrone Docherty. “Not only do we see this as an exceptional prospect for both tellurium and precious metals, Klondike also gives us a project we can explore almost year-around. We’ll be providing more details about this exciting property in the coming weeks.”
Colorado Klondike LLC General Manager John Keller, who originally assessed Klondike for First Solar, stated: “First Solar conducted a very encouraging geophysical survey and geochemical sampling, and they had permits in place for drilling at Klondike. Unfortunately, the program was terminated before Klondike could be drilled. We formed our company because, analyzing these results, we believed the property could hold significant resources of tellurium, gold, and silver.”
Keller added: “The Klondike property had by far the highest tellurium grades in rock samples of the hundreds of prospects and deposits we examined in the US and Canada from 2006 to 2011. Some samples at Klondike were an order of magnitude higher in Te grade than any others. The samples also contained high-grade gold with significant silver.”
Mr. Keller is a Certified Professional Geologist and a Qualified Person (QP) under Canadian NI 43-101 regulations. He worked for First Solar Inc. from 2006 to 2011, initially as a consulting geologist and later as Exploration Manager for North America.
The terms of the Deer Horn-Colorado Klondike LLC agreement include consideration for an aggregate of US$260,000 cash and Deer Horn incurring an aggregate of US$300,000 in exploration expenses on the property within five years, at which time the option may be fully exercised upon payment of an additional up to US$1,500,000. Upon full exercise of the option the Company will grant the vendor a 3% NSR, with the right to buy-back a 1% NSR upon payment of US$1,000,000. The Company will also be required to pay an advance royalty payment of US$60,000/year commencing on the first anniversary of the exercise of the option.
About Deer Horn Capital
Deer Horn Capital’s unique business model is based on leveraging diverse partnerships to generate revenue and value. Working with Indigenous peoples, NGOs, governments and industry, Deer Horn Capital explores for metals in British Columbia and helps indigenous communities grow and thrive through various industrial, social and environmental ventures.
Deer Horn Capital proudly adheres to and supports the principles and rights set out in the United Nations Declaration on the Rights of Indigenous Peoples and in particular the fundamental proposition of free, prior and informed consent. Deer Horn Capital has been a vocal advocate of the BC Declaration on the Rights of Indigenous Peoples Act since its introduction and passage in the British Columbia legislature in November 2019. Deer Horn Capital also supports federal Bill C-15, the United Nations Declaration on the Rights of Indigenous Peoples Act.
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