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Flow Metals Corp. (CSE: FWM) ("Flow Metals" or the "Company") is pleased to report that it has entered into an option agreement dated effective March 31, 2026 (the "Option Agreement") with an arm's length party ("Optionor"), pursuant to which the Company may acquire a 100% interest in the Sixtymile Valley project located in the Yukon and traditional territory of the Tr'ondek Hwech'in First Nation.
"The acquisition of the new project increases the Company's district footprint while positioning Flow Metals with meaningful exposure to both gold and copper. Sixtymile presents a unique opportunity to unlock the lode source of 100 years of rich placer gold production," said Scott Sheldon, CEO of Flow Metals.
Option Agreement
Pursuant to the Option Agreement, Flow Metals may acquire a 100% interest in the project by making aggregate payments of $280,000 over a four-year period, as follows:
- $5,000 within seven (7) business days following the effective date;
- $5,000 on the date that is six (6) months following the effective date;
- $10,000 on the first anniversary of the effective date;
- $40,000 on the second anniversary of the effective date;
- $60,000 on the third anniversary of the effective date; and
- $160,000 on the fourth anniversary of the effective date.
The Company may satisfy each payment entirely in cash or, at its election, as to 50% in common shares of the Company and 50% in cash, subject to applicable securities laws and the policies of the Canadian Securities Exchange. Any common shares issued pursuant to the Option Agreement will be subject to applicable resale restrictions under Canadian securities laws and the policies of the Canadian Securities Exchange. No finder's fees were paid in connection with the transaction.
Upon exercise of the option, the Optionor will retain a 2.0% net smelter return royalty on the project, of which 1.0% may be repurchased by the Company for $1,000,000, subject to the terms of the Option Agreement. Following exercise of the option and until commencement of commercial production, the Company will also be required to make annual advance royalty payments of $10,000, which will be credited against the buyback price.
About the Sixtymile Valley Project
The acquisition of the adjoining 4,300-hectare property is expected to secure a district-scale position over an intact copper-gold-molybdenum porphyry system associated with the Late Cretaceous Prospector Mountain Suite. The addition expands the Company's exposure beyond orogenic gold into a multi-metal system with exposure to metals recognized as strategically important for supply security.
Previous exploration focused on shallow precious metal vein targets, and historical drilling is reported to have intersected long intervals of disseminated and stockwork mineralization. These results, together with kilometre-scale geochemical anomalies, suggest the potential for a large, preserved porphyry system with limited modern follow-up.
The system is interpreted to be hosted within a structurally controlled pull-apart basin along the Sixtymile-Pika Fault, within an emerging porphyry belt in the Dawson Range. Its apparent preservation and scale, together with established mineralization, position the project for modern geophysics and deeper drilling.
About Flow Metals
Flow Metals has maintained an active presence in the Yukon since 2018, building deep technical expertise and local relationships across the territory. Flow Metals has established a trusted network of experienced contractors and strong working relationships with both territorial and First Nation governments, providing the Company with a solid foundation to efficiently advance exploration projects in the North.
Qualified Person
Harley Slade, P. Geo., is the Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects and has reviewed and approved the technical information contained in this news release. Mr. Slade is Flow Metals Vice President of Exploration and a director of the Company.
For further information, please contact:
Scott Sheldon, President
604.725.1857
scott@flowmetals.com
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, statements regarding: the Company's ability to complete its obligations under the Option Agreement and earn a 100% interest in the Sixtymile Project; the timing of any option payments and any share issuances contemplated by the Option Agreement; the receipt of required regulatory and stock exchange approvals, as applicable; the exploration potential of the Sixtymile Project; the Company's planned exploration and development activities, including the scope, timing and results of future work programs and any future drilling; and the Company's future plans, expectations, objectives and intentions.
Forward-looking information is based on assumptions that the Company believes are reasonable as of the date hereof, including assumptions regarding: the parties' ability to satisfy the terms and conditions of the Option Agreement; the receipt of all required regulatory, third-party and exchange approvals, as applicable; the Company's ability to obtain financing on acceptable terms, as required, to fund future exploration and development; the Company's ability to make required cash payments and, where applicable, issue common shares in accordance with the Option Agreement; the Company's ability to access the Sixtymile Project and carry out planned work programs; the availability of contractors, equipment and other resources required to conduct exploration activities; and general business, economic and commodity price conditions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking information. These risks and uncertainties include, among others: the risk that required approvals may not be obtained on a timely basis or at all; the risk that the transaction contemplated by the Option Agreement may not be completed as contemplated or at all; the risk that the Company may not satisfy the conditions required to earn its interest in the Sixtymile Project; risks inherent in exploration and development, including that exploration results may not be indicative of future results; operational and technical risks; changes in project parameters as plans continue to be refined; commodity price fluctuations; market volatility; and other risks described in the Company's public disclosure documents available under the Company's profile on SEDAR+.
Readers are cautioned not to place undue reliance on forward-looking information. All forward-looking information contained in this release is made as of the date of this release, and the Company disclaims any intent or obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.
The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/290720
