OUTCROP SILVER & GOLD CORPORATION
ANNUAL INFORMATION FORM
For the Year Ended August 31, 2021
December 22, 2021
CONTENTS | |
PRELIMINARY NOTES .............................................................................................................. | 6 |
Financial Statements and MD&A ..................................................................................... | 6 |
Effective Date of Information ........................................................................................... | 6 |
Cautionary Note regarding Forward-Looking Information ................................................ | 6 |
Currency.......................................................................................................................... | 8 |
Cautionary Note to United States Investors Concerning Estimates of | |
Measured, Indicated and Inferred Resources .................................................................. | 8 |
CORPORATE STRUCTURE .................................................................................................... | 10 |
Name, Addresses and Incorporation ............................................................................. | 10 |
Intercorporate Relationships.......................................................................................... | 11 |
GENERAL DEVELOPMENT OF THE BUSINESS OF THE COMPANY................................... | 11 |
Overview ....................................................................................................................... | 11 |
Recent Developments ................................................................................................... | 11 |
Three Year History ........................................................................................................ | 13 |
Financial year ended August 31, 2019 .......................................................................... | 13 |
Financial year ended August 31, 2020 .......................................................................... | 14 |
Financial year ended August 31, 2021 .......................................................................... | 15 |
Significant Acquisitions.................................................................................................. | 16 |
BUSINESS OF THE COMPANY............................................................................................... | 17 |
General ......................................................................................................................... | 17 |
Stage of Development ................................................................................................... | 17 |
Specialized Skill and Knowledge ................................................................................... | 17 |
Competitive Conditions.................................................................................................. | 17 |
Components.................................................................................................................. | 17 |
Cycles ........................................................................................................................... | 17 |
Economic Dependence ................................................................................................. | 18 |
Changes to Contracts.................................................................................................... | 18 |
Environmental Protection............................................................................................... | 18 |
Employees .................................................................................................................... | 18 |
Foreign Operations........................................................................................................ | 18 |
RISK FACTORS ....................................................................................................................... | 18 |
Negative Impacts by an Outbreak of Infectious Disease or Pandemic ........................... | 19 |
Mining............................................................................................................................ | 19 |
Permitting ...................................................................................................................... | 20 |
Social and Environmental Activism................................................................................ | 20 |
Legal Proceedings......................................................................................................... | 20 |
Foreign Country Risk..................................................................................................... | 21 |
Foreign Operations........................................................................................................ | 21 |
Differing Interpretations in Tax Regimes in Foreign Jurisdictions................................... | 22 |
Foreign Subsidiaries...................................................................................................... | 22 |
Government Regulation................................................................................................. | 22 |
Seizure or Expropriation of Assets................................................................................. | 22 |
Tax Matters ................................................................................................................... | 23 |
No History of Profitability ............................................................................................... | 23 |
Risks Associated with Mineral Markets.......................................................................... | 23 |
Risks with Title to Mineral Properties............................................................................. | 23 |
Environmental Risks and Hazards................................................................................. | 24 |
Natural Disasters, Geopolitical Instability or Other Unforeseen Events.......................... | 24 |
Risks Associated with Potential Acquisitions ................................................................. | 24 |
Competition and Scarcity of Mineral Lands.................................................................... | 25 |
Future Profits/Losses and Production Revenues/Expenses........................................... | 25 |
Personnel; Equipment ................................................................................................... | 25 |
Insurance ...................................................................................................................... | 26 |
Infrastructure ................................................................................................................. | 26 |
Financing....................................................................................................................... | 26 |
Currency Risk................................................................................................................ | 26 |
Market for Securities...................................................................................................... | 26 |
Price Volatility of Publicly Traded Securities .................................................................. | 27 |
Unlimited Number of Authorized but Unissued Shares .................................................. | 27 |
Stress in the Global Economy ....................................................................................... | 27 |
Information Technology ................................................................................................. | 27 |
Cybersecurity Incidents and Technological Disruptions ................................................. | 28 |
Climate Change............................................................................................................. | 28 |
Conflicts of Interest........................................................................................................ | 28 |
MINERAL PROJECTS - SANTA ANA PROJECT ................................................................... | 28 |
Project Description, Location and Access...................................................................... | 29 |
Property Location............................................................................................... | 29 |
Legal Framework ............................................................................................... | 32 |
Environmental Liabilities .................................................................................... | 33 |
Surface Rights ................................................................................................... | 33 |
Santa Ana Project Agreement............................................................................ | 34 |
Santa Ana Mining Rights.................................................................................... | 34 |
Royalties............................................................................................................ | 34 |
Accessibility, Climate, Local Resources, Infrastructure & Physiography ........................ | 34 |
Property History............................................................................................................. | 35 |
Historical Exploration Programmes .................................................................... | 35 |
Historical Drilling ................................................................................................ | 36 |
Historical Resources .......................................................................................... | 36 |
Historical Production .......................................................................................... | 36 |
Geological Setting ......................................................................................................... | 36 |
Regional Geography .......................................................................................... | 36 |
Local Geography................................................................................................ | 37 |
Mineralisation..................................................................................................... | 37 |
Deposit Types ............................................................................................................... | 37 |
Exploration .................................................................................................................... | 38 |
Red Eagle Exploration 2018 Exploration Programme ........................................ | 39 |
Drilling ........................................................................................................................... | 40 |
Megapozo.......................................................................................................... | 46 |
QA/QC47 | |
Sample Preparation, Analyses and Security.................................................................. | 47 |
CPM 2012-2014 Sample Security and Preparation ............................................ | 47 |
Red Eagle Exploration 2018 Sample Security and Preparation.......................... | 48 |
CPM Assay Procedures 2012-2014 ................................................................... | 48 | |
Red Eagle Assay Procedures 2018 ................................................................... | 48 | |
Antediluvial Sampling 2019................................................................................ | 48 | |
Data Verification ............................................................................................................ | 49 | |
Doublewood Data Verification 2012 ................................................................... | 49 | |
Environmental Studies, Permitting & Social or Community Impact ................................ | 50 | |
NON-MATERIAL PROPERTIES............................................................................................... | 50 | |
Colombia - Antares Project............................................................................................ | 50 | |
Colombia - Argelia Project ............................................................................................ | 51 | |
Colombia - Mallama Project.......................................................................................... | 52 | |
Colombia - Oribella Project ........................................................................................... | 52 | |
Alaska - Renshaw Royalty ............................................... | Error! Bookmark not defined. | |
DIVIDENDS AND DISTRIBUTIONS ......................................................................................... | 52 | |
DESCRIPTION OF CAPITAL STRUCTURE............................................................................. | 53 | |
MARKET FOR SECURITIES.................................................................................................... | 53 | |
Trading Price and Volume ............................................................................................. | 53 | |
PRIOR SALES.......................................................................................................................... | 54 | |
DIRECTORS AND OFFICERS ................................................................................................. | 54 | |
Name, Occupation and Security Holdings ..................................................................... | 54 | |
Cease Trade Orders, Bankruptcies, Penalties or Sanctions .......................................... | 55 | |
Conflicts of Interest........................................................................................................ | 56 | |
LEGAL PROCEEDINGS AND REGULATORY ACTIONS ....................................................... | 56 | |
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS................... | 57 | |
TRANSFER AGENT AND REGISTRAR................................................................................... | 57 | |
INTERESTS OF EXPERTS ...................................................................................................... | 57 | |
AUDIT COMMITTEE INFORMATION....................................................................................... | 58 | |
Audit Committee Information ......................................................................................... | 58 | |
Composition of the Audit and Finance Committee ......................................................... | 58 | |
Relevant Education and Experience.............................................................................. | 58 | |
Audit Committee Oversight............................................................................................ | 59 | |
Reliance on Certain Exemptions.................................................................................... | 59 | |
Pre-Approval Policies and Procedures .......................................................................... | 59 | |
External Auditor Service Fees (By Category)................................................................. | 60 | |
MATERIAL CONTRACTS ........................................................................................................ | 60 | |
ADDITIONAL INFORMATION.................................................................................................. | 60 | |
Schedule "A" - Audit and Finance Committee Information |
4
GLOSSARY OF GENERAL TERMS
In this AIF, unless otherwise defined in the body of this AIF, the following capitalized words and terms have the following meanings:
Affiliate: | A company is an "Affiliate" of another company if: | |
(a) | one of them is the subsidiary of the other; or | |
(b) each of them is controlled by the same Person; | ||
AIF: | means this Annual Information Form; | |
ANM: | means the Agencia Nacional de Mineria; | |
Associate: | means, when used to indicate a relationship with a Person, | |
(a) a partner, other than a limited partner, of that Person; | ||
(b) a trust or estate in which that Person has a substantial | ||
beneficial interest or for which that Person serves as | ||
trustee or in a similar capacity; | ||
(c) an issuer in respect of which that Person beneficially | ||
owns or controls, directly or indirectly, voting securities | ||
carrying more than 10% of the voting rights attached to | ||
all outstanding voting securities of the issuer, or | ||
(d) a relative, including the spouse, of that Person or a | ||
relative of that Person's spouse, if the relative has the | ||
same home as that Person; | ||
Board: | means the Board of Directors of the Company; | |
Common Shares: | means the common shares of the Company; | |
company: | unless specifically indicated otherwise, means a company, | |
incorporated association or organization, body corporate, | ||
partnership, trust, association or other entity other than an | ||
individual; | ||
Control Person: | means any person or company that holds or is one of a | |
combination of persons or companies that holds a sufficient | ||
number of any of the securities of an issuer so as to affect | ||
materially the control of that issuer, or that holds more than 20% | ||
of the outstanding voting securities of an issuer except where | ||
there is evidence showing that the holder of those securities does | ||
not materially affect the control of the issuer; | ||
Exchange: | means TSX Venture Exchange; | |
Insider: | if used in relation to an issuer, means: | |
(a) a director or senior officer of the issuer; |
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Outcrop Silver & Gold Corporation published this content on 04 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 January 2022 16:18:05 UTC.