Rugby and Calidus Sign Option Agreement to Fast Track Exploration at Otways Gold-Copper Project, Pilbara in Western Australia

VANCOUVER, British Columbia, May 28, 2020 (GLOBE NEWSWIRE) -- Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V: RUG) is pleased to announce that the Company has signed a Heads of Agreement (“Agreement”) with Calidus Resources Limited (“Calidus”) (ASX: CAI) to earn an interest of up to 70% in the Otways Gold-Copper Project (“Otways”).

Otways is located approximately 50 kilometres from Calidus’ flagship Warrawoona Gold Project (“Warrawoona”) in the Pilbara, Western Australia. Warrawoona has JORC compliant resources totalling 800,000 oz gold (indicated) and 450,000 oz gold (inferred)*. Calidus press release:

Calidus to acquire Otways Project near Warrawoona

Heads of Agreement Highlights:

• Calidus to spend A$200,000, including 1,200 metres (“m”) of drilling, within 12 months of the Agreement;
• Calidus to spend a further A$500,000, including a minimum of 3,000m of drilling, within 30 months of the Agreement to earn 50%;
• Calidus to spend an additional A$500,000, including a further 3,000m of drilling, within 48 months of the Agreement and issue A$250,000 worth of Calidus shares at the completion of the spend using a 10-day Volume Weighted Average Price to earn 70% in Otways.

Rugby’s President and CEO, Mr. Bryce Roxburgh commented, “Although Otways has significant exploration upside with a number of unexplored gold and copper targets, we are pleased to partner with a very successful explorer such as Calidus, and confident this will produce a positive long-term outcome for Rugby and its shareholders. Although this represents a considerable endorsement of Otways potential, it will allow us to focus on our South American priority projects. Following the lockdown in Colombia, we intend to immediately follow up the permitting of the very prospective gold tenure applications acquired through Rugby’s purchase of the local subsidiary of the major North American gold miner, when it decided to exit Colombia. We expect that the restrictions will begin to be lifted in Colombia in June.”

* Source: Calidus Resources website https://www.calidus.com.au

About Rugby
Rugby is an exploration company conducting “discovery stage” exploration on highly prospective targets in Colombia, Argentina, the Philippines and Australia. Importantly, Rugby controls a large portfolio of projects and applications in Colombia that have considerable potential for significant gold-copper discoveries.