Canoe Signs Services Agreement with OpenPort to Build a Blockchain TMS for use in the Traditional Mining Industry
OAKVILLE, ONTARIO--(Marketwired - Jan 25, 2018) - Canoe Mining Ventures Corp. (TSX VENTURE:CLV) ("Canoe" or the "Company") today announced that it has signed a services agreement with OpenPort Limited ("OpenPort") of Hong Kong to build a Mining Operations Logistics Solution ("MOLS") to service the traditional mining industry using a blockchain protocol. While Canoe is still focusing on its core mining project, the Kerrs Gold Property, the opportunity to have such a unique vertically integrated technology is exciting to the Company. The MOLS will be ideal for the tracking and delivery of core samples and other raw or finished resources.
OpenPort is a private blockchain technology company generating significant top line revenue with a Fortune 500 client base across Asia currently utilizing their proprietary transport management system ("TMS") and digital logistics network. Leveraging on this success, OpenPort wishes to vertically integrate their software platform into the mining sector through building a relationship with Canoe. Through a Canoe subsidiary, the combined team will design, develop and implement the blockchain TMS application software specifically for the mining industry on a revenue sharing basis.
For its services, the Company has agreed to pay OpenPort consulting consideration in the amount of US$50,000, paid on signing, plus bearing additional costs and expenses not exceeding US$1,500,000, payable when milestones are achieved as the platform is proven out.
"Canoe is excited to partner with OpenPort to develop MOLS to secure, control and transport material from shovel to point of delivery for refined minable products. This initial agreement would position Canoe as the first to market blockchain technology to high volume mining operations such as manganese, iron ore and aggregates globally," stated Duane Parnham, President and Director of Canoe.
"OpenPort has made great strides creating visibility and trust in the supply chain for our clients, and with our logistics protocol for blockchain, we aim to extend immutable transparency to all supply chain participants. The MOLS project is a fantastic opportunity to demonstrate the power of this technology for end-to-end traceability in any supply chain," stated Max Ward, OpenPort CEO and Founder.
Canoe appointed Mr. Daniel Baard, CPA, ACCA (Fellow), CAIB (SA), M.Six Sigma Cert as a strategic advisor to the Company, where he can utilize his extensive experience in Logistics, Contact Mining, finance, administration and public company accounting to coordinate with and assist the OpenPort team in developing this new project. In connection with this appointment, Canoe announces the grant of 50,000 stock options in accordance with the Company's stock option plan, all vesting immediately at $0.16 with a 5 year term.
Canoe has a current cash position of approximately C$1,300,000 and holds a 100% interest in the Kerrs Gold Property, which consists of 10 mining claims and 12 mining leasehold patents located in the Larder Lake Mining Division of Ontario. The property is located within a favorable gold exploration environment and in close proximity to other major exploration companies such as Goldcorp Inc., who hold ground immediately adjacent to the Kerrs Gold Property. A National Instrument 43-101 technical report was completed on the Kerrs Gold Property in 2011 by Kirkham Geosystems of Burnaby, BC. The Company is currently reviewing geological information as a desktop regional exploration study and intends to spend a minimal budget at this time to explore the property.
The Company is also reviewing joint venture opportunities to allow others to explore the project on its behalf and continues to review other opportunities in the mining sector. Further to the news release of December 18, 2017, the Company will not be seeking opportunities in the Cannabis sector.
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.
On Behalf of the Board of Directors of Canoe,
Duane Parnham, President and CEO
Forward Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release or other future plans, objectives or expectations of Canoe are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Canoe's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by Canoe with securities regulators. Canoe expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.