Original News Release
Forge continues camp construction at La Estrella
Mr. P.J. Murphy reports
FORGE RESOURCES ADVANCES LA ESTRELLA COAL PROJECT WITH KEY INFRASTRUCTURE AND PERSONNEL TO BOLSTER CONTINUOUS OPERATIONS
Forge Resources Corp. is advancing its La Estrella coal project with new camps, a mechanical station, and the hiring of a third-shift mining engineer, flow-through financing and marketing of shares.
Construction updates
The company has reached a 55-per-cent completion milestone with the construction of the initial mining camps at its fully permitted flagship La Estrella coal project in Colombia. These camps were designed to include 12 rooms, providing accommodations for over 24 people. The facilities also feature six sanitary units (one sanitary unit serving every two rooms). Importantly, the camp foundations were engineered to support a future second floor, which will be constructed as the project expands to meet operational demands.
In the same way, construction is under way on a new mechanical station designed to house the project's compressor and energy generation plant. This dedicated facility will provide a stable and efficient source of power to sustain underground operations, reduce dependence on external supply, and enhance the overall reliability of site infrastructure. The mechanical station will also support future expansion of production capacity, ensuring that the project has the necessary energy backbone to operate multiple shifts per day and improve its development rate.
New team addition
The company is also pleased to announce the hiring of Claudia Patricia Gutierrez Santamaria as mining engineer and shift boss for the third shift of operations. Ms. Gutierrez Santamaria brings extensive underground coal mining experience, and is a certified specialist in occupational health and safety (SG-SST). She has held leadership roles in mine supervision, production planning and work force management, including serving as mine chief at Grupo JARR, and adviser to Ferrpol de Colombia and ASOMISAR. With her appointment, Forge Resources is set to operate three shifts per day, improving the rate of advance at the project. Her combined expertise in operations and health and safety will be central to driving both productivity and compliance across Forge's underground operations.
P.J. Murphy, chief executive officer of Forge Resources, states: "The construction of our mining camps and mechanical station, together with the hiring of mining engineer Claudia Patricia Gutierrez Santamaria, represent significant milestones for the La Estrella project. These investments not only ensure the well-being of our work force and provide reliable energy for operations, but also expand our capacity to three shifts per day, improving both efficiency and the rate of advance. Taken together, these steps reinforce our commitment to building strong, sustainable foundations that will support long-term success for our shareholders, employees and local communities."
Flow-through private placement
The private placement will comprise up to 1,818,182 units at a price of 55 cents per unit for aggregate gross proceeds of up to approximately $1-million, with each unit consisting of one flow-through common share and one-half of one transferable non-flow-through share purchase warrant. Each warrant will enable the holder to acquire an additional non-flow-through common share of the company at a price of 70 cents per warrant share for a period of 36 months from the date of issuance.
The gross proceeds from the units will still be utilized for incurring Canadian exploration expenses and flow-through mining expenditures. Finders' fees may be payable in connection with the private placement, subject to and in accordance with the policies of the Canadian Securities Exchange.
Corporate update
The company also announces that its subsidiary, Aion Mining Corp., will sell up to 5,984,750 common shares held by it in Forge. The subject shares were issued to Aion in the course of the company's acquisition of an increasing share position in Aion. As at the date of this news release, the company holds an 80-per-cent equity interest in Aion.
The subject shares may be sold by Aion off-market, with sales to be made for no less than 80 per cent of the trading price of the company's common shares on the CSE at the time of trade. The subject shares will not be sold to non-arm's-length parties. Net proceeds of any such sales will be used by Forge and Aion to support the companies and to further the La Estrella coal project in Colombia, comprising eight known seams of metallurgical and thermal coal.
Management of the company views such sales as being a beneficial and responsible way to raise the funds needed to progress the La Estrella coal project, while minimizing any dilution to the company's shareholders.
About Forge Resources Corp.
Forge Resources is a Canadian-listed junior exploration company. The company holds an 80-per-cent interest in Aion Mining, a company that is developing the fully permitted La Estrella coal project in Santander, Colombia. La Estrella contains eight known seams of metallurgical and thermal coal.
The company also holds an option on the Alotta project, a prospective porphyry copper-gold-molybdenum project located 50 kilometres southeast of the Casino porphyry deposit in the unglaciated portion of the Dawson Range porphyry/epithermal belt in Yukon of Canada.
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