Metals Creek Resources Agrees to Sell Iron Horse Project Royalty to Gold Royalties Corporation

(AUDIO ENHANCED) Metals Creek Resources Agrees to Sell Iron Horse Project Royalty to Gold Royalties Corporation; President & CEO Sandy Stares provides Corporate Update on Junior Mining Network Radio

Toronto, Ontario - July 30, 2013 – Metals Creek Resources Corp. (TSX-V: MEK) (“Metals Creek” or the “Company”) is pleased to announce that it has executed a definitive agreement dated July 29, 2013 to sell a royalty asset (the “Asset”), comprised of a 1.0% royalty interest on the mineral claims comprising the Iron Horse Project (formerly Gabbro Lake) located in Newfoundland’s Labrador Trough (the “Transaction”). The Asset will be sold to Gold Royalties Corporation (TSX-V:GRO) (“Gold Royalties”) for consideration of 1,333,333 common shares of Gold Royalties at a deemed price of $0.45 per share (the “Share Consideration”). Closing of the Transaction, which is expected to occur on or before August 2, 2013, is subject to approval by the TSX Venture Exchange.

Metals Creek has agreed to a contractual escrow period whereby the Share Consideration will be released in 25% increments every six (6) months following the date of closing of the Transaction.

The sale was previously announced by Metals Creek on January 21, 2013.

About the Royalty Interest

The Iron Horse Project is an early-stage exploration project being advanced by Golden Dory Resources Corporation (“Golden Dory”) and is located in Newfoundland’s Labrador Trough. It is approximately 50km from the rail line servicing the Schefferville mining camp.

The 1.0% net smelter return royalty covers the Iron Horse Project, which comprises approximately 10,000 hectares. The Iron Horse Project is host to a new iron ore discovery from which a drill intercept of 309 meters at 28.6% Fe was reported by Golden Dory in a news release dated October 10, 2012. The Iron Horse Project is contiguous to mining claims held by Altius Minerals Inc. and Century Iron Mines Corporation.

In addition to royalty coverage of all minerals and metals, including gold, that may be located on the Iron Horse mineral claims, the 1.0% net smelter return royalty exempts iron ore from any permissible deductions otherwise associated with other metals and minerals which may be discovered on the Iron Horse Project. The result of this exemption causes the net smelter return royalty to equate to a gross sale royalty with respect to any commercial production of iron ore which may occur from the Iron Horse Project.

On November 8, 2012, Golden Dory announced that Callinan Royalties Corporation (“Callinan Royalties”) would invest $1,000,000 in Golden Dory through a private placement and, concurrent with the closing of that financing, Callinan Royalties would acquire two royalty options from Golden Dory on the Iron Horse Project. Under the first royalty option, exercisable at any time up to 180 days following 180 days of continuous commercial production, Callinan Royalties may acquire a 1.0% royalty on the Iron Horse Project on the payment by Callinan Royalties to Golden Dory of $1,000,000. Under the second royalty option, Callinan Royalties may acquire up to an additional 1.1% royalty (with a minimum 0.5% royalty) by paying Golden Dory the net present value for that additional royalty, the value of which is to be determined by an independent third party based on a bankable feasibility study used for mine construction on the Iron Horse Project.

Upon closing of the Gold Royalties and Metals Creek Transaction, Metals Creek will still retain a 0.9% royalty from the Iron Horse Project.

“Once finalized, divesting of our interest in the Iron Horse project will net the Company 1,333,333 shares of Gold Royalties, 19,000,000 shares of Golden Dory and a 0.9% project NSR. This transaction is consistent with the Company’s strategy of selling or joint venturing its assets outside of the Company’s main focus, our flagship Goldcorp Joint Venture (Ogden Gold Project) in Timmins Ontario”, stated Sandy Stares, President and CEO Metals Creek Resources.

On the latest Edition of Junior Mining Network Radio, President and CEO Sandy Stares discusses current events at Metals Creek Resources Developments: Tune in Now!

About Metals Creek

Metals Creek Resources Corp. is a well-funded junior exploration company incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol “MEK”. Metals Creek recently formed a 50/50 joint venture with Goldcorp, to continue exploring the Ogden Gold property, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario. The Company will be the operator and subsequent programs will be funded on a 50/50 basis while both companies contribute its share of required funding in the Ogden Gold Property. Metals Creek is also engaged in the identification, acquisition, exploration and development of other mineral resource properties, and presently has mining interests in Ontario, Yukon and Newfoundland and Labrador. Additional information concerning the Company is contained in documents filed with securities regulators, available under the Company’s profile at www.sedar.com

 

Alexander (Sandy) Stares, President and CEO
Metals Creek Resources Corp
telephone: (709)-256-6060
fax: (709)-256-6061
email: astares@metalscreek.com
ca.linkedin.com/in/sandystares/
MetalsCreek.com
Twitter.com/MetalsCreekRes
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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 release.

Forward Looking Statement:
Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors identified above and in the Company's periodic filings with the Ontario Securities Commission. Specifically, completion of the Transaction is subject to a number of conditions, including but not limited to TSX Venture Exchange acceptance. There can be no assurance that the Transaction will be completed as proposed or at all. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.