Metals Creek to Option Its 1/3 Stake in New Lead/Silver Property
Metals Creek to Option Its 1/3 Stake in New Lead/Silver Property On Newfoundlands Great Northern Peninsula, To Quadro Resources
Toronto, 09 July, 2018. - Metals Creek Resources Corp. (TSX-V: MEK) (Metals Creek or the company), is pleased to announce that the company has entered into an option agreement with Quadro Resources Inc (TSX- V: QRO) (Quadro), whereby Quadro can earn Metals Creek’s 33.33 percent interest it the new claims that were jointly staked on Newfoundland’s Great Northern Peninsula. (see MEK news release dated 22 June, 2018).
To acquire Metals Creek’s one-third interest, QRO will issue to Metals Creek a total of 1,000,000 shares according to the following schedule:
- a) on signing 200,000 QRO shares
- b) within six months of the approval date 300,000 QRO shares
- c) within eighteen months of the approval date 500,000 QRO shares
Metals Creek will retain a 1.0% Net Smelter Return (NSR) royalty on any future mineral production from the claims. Quadro will have the right to purchase 50% of the NSR from Metals Creek for $500,000.
Alexander (Sandy) Stares, President and CEO of Metals Creek states “Metals Creek already has a substantial share position in Quadro, Management believes this was the best path forward, allowing the company to focus on current projects, preserve capital and be in a position to leverage the upside through this share position and retained a NSR should the project advance towards development”.
Recent grab sample samples taken from the newly discovered zone returned values up to 15.5% Lead (pb) and 192 grams per tonne (g/t) silver. Below is a table of assay results:
|
Sample Number |
Lead (%) |
Silver (g/t) |
Copper (ppm) |
Zinc (ppm) |
|
309910 |
1.99 |
30.7 |
3954 |
40 |
|
309911 |
5.30 |
13.4 |
140 |
90 |
|
309912 |
15.50 |
44 |
400 |
94 |
|
309913 |
1.74 |
26.6 |
214 |
27 |
|
309914 |
10.20 |
70.7 |
4581 |
2600 |
|
309915 |
1.38 |
14.6 |
485 |
38 |
|
309916 |
6.30 |
86.2 |
1188 |
520 |
|
309917 |
0.08 |
0.5 |
11 |
18 |
|
309918 |
5.07 |
192 |
2372 |
344 |
The property is located approximately 7 kms from the southeast boundary of Altius Minerals Corporation’s new Sail Pond discovery, where Altius obtained grab samples up to 2,030 g/t Ag, 7.08% Cu, 9.40% Pb, 2.54% Sb, 0.46 g/t Au. (Altius web site http://altiusminerals.com/projects/sail-pond). Altius has executed a Letter of Intent (“LOI”) to sell its Sail Pond silver-copper-lead-zinc project to New Found Gold Corp. (“NFG”), a private Newfoundland-focused precious metals explorer. Key conditions of the LOI include NFG listing its common shares on a recognized Canadian stock exchange and raising a minimum of $7.5 million via a private placement, of which Altius would invest a minimum of $1 million. (See Altius news release dated 28 March 2018).
Wayne Reid, P. Geo., a Qualified Person as defined in National Instrument 43-101, was involved in the collection of the samples, supervised the analytical program and approved the scientific and technical disclosure in the news release.
Analysis reported in this release were completed by Eastern Analytical in Springdale, NL. with ISO 17025 accreditation. Samples were transported, by the Qualified Person, in sealed bags to Eastern and all samples were analyzed using a Au plus 34 element ICP procedure. Over-limits for base metals and silver were assayed using industry-standard assay techniques.
The Option will be effected with Quadro of which MEK is an insider and as such the transaction is a ”related party transaction” as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on exemptions from the formal valuation and minority approval requirements set out in MI 61-101. The Company is exempt from the formal valuation requirement of MI 61-101 under sections 5.5(a) and (b) of MI 61-101 in respect of the transaction as the fair market value of the transaction, insofar as it involves the interested parties, is not more than 25% of the Company’s market capitalization. Additionally, the Company is exempt from minority shareholder approval under sections 5.7(1)(a) and (b) of MI 61-101 as, in addition to the foregoing, (i) neither the fair market value of the transaction nor the consideration to be provided to the interested parties exceeds $2,500,000, (ii) the Company has one or more independent directors who are not employees of the Company, and (iii) all of the independent directors have approved the transaction.
About Metals Creek Resources Corp.
Metals Creek Resources Corp. is a 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 has earned a 50% interest in the Ogden Gold Property, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario and has a 8 km strike length of the prolific Porcupine-Destor Fault (P-DF) that stretches between Timmins, Ontario and Val d’Or, Quebec. Metals Creek also has an option agreement with Quadro Resources on Metals Creeks and Benton Resources Staghorn Gold Project in Newfoundland as well as two option agreements with Anaconda Mining Inc. on Metals Creek’s Jacksons Arm and Tilt Cove Properties also in Newfoundland. The company also has an option agreement on its Clarks Brook property with Sokoman Iron Corp. and is 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 including the recently acquired Great Brehat project on the Great Northern Peninsula of Newfoundland. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under its profile at www.sedar.com.
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.
Alexander (Sandy) Stares, President and CEO Metals Creek Resources Corp telephone: (709)-256-6060 fax: (709)-256-6061 email: astares@metalscreek.com MetalsCreek.com Twitter.com/MetalsCreekRes Facebook.com/MetalsCreek