Metals Creek Resources Corp. (TSXV: MEK) (OTCQB: MCREF) (FSE: M1C1) (the "Company" or Metals Creek) is pleased to announce that the company has signed an option agreement with Golden Sky Minerals Corp. (TSXV: AUEN) (Golden Sky) whereas Golden Sky has the right to earn a 100% interest in the company's Squid East claims in the Yukon.
MEK initially staked the Squid East Property in February, 2011, during the staking rush that ensued after the discovery of the White Gold deposit. The claims are located proximal to the Matson Creek placer gold operations, approximately 80 km northwest of the Goldcorp's Coffee Project and 90 km southwest of Dawson City. Soil sampling, trenching and limited diamond drilling carried out in 2013 resulted in the discovery of a new gold-silver zone with characteristics similar to other discoveries in the White Gold district. Results included 22.0 meters (m) of 1.96 grams per ton (g/t) gold (Au) and 160.6 g/t Silver (Ag) from trenching and 1.55 g/t Au and 114.1 g/t Ag over 21.0 m from the subsequent drilling (see MEK press releases dated August 6, 2013 and October 8, 2013).
Additional drilling was carried out by Trifecta Gold in 2017 totaling 546.5 m in five holes. This drilling yielded elevated gold and silver assays to a maximum of 2.1 g/t gold and 325 g/t silver over 1.19 metres. (See Trifecta Golds news release dated November 13, 2017).
While Trifecta's drill program did not replicate the Metals Creek intersection, the mineralized horizons were intersected where anticipated, and the target remains open down-dip and along strike in both directions.
Gold Sky will be deemed to have exercised the Option upon: issuing an aggregate 1,200,000 Shares to Metals Creek as follows:
- 150,000 Shares upon receipt of TSX Venture Exchange (the "Exchange") approval for the proposed transaction;
- 150,000 Shares on or before the 31st of December 2022;
- 200,000 Shares on or before the 31st of December 2023;
- 300,000 Shares on or before the 31st of December 2024; and
- 400,000 Shares on or before the 31st of December 2025.
Golden Sky will pay an aggregate of $100,000 to Metals Creek as follows;
- $10,000 upon receipt of Exchange approval for the proposed transaction;
- $15,000 on or before the 31st of December 2022;
- $20,000 on or before the 31st of December 2023;
- $20,000 on or before the 31st of December 2024; and
- $35,000 on or before the 31st of December 2025
Golden Sky having expended a minimum of $850,000 of Exploration Expenditures on the Property as follows:
- $50,000 on or before the 31st of December 2022;
- a further $100,000 on or before the 31st of December 2023;
- a further $200,000 on or before the 31st of December 2024; and
- a further $500,000 on or before the 31st of December 2025.
Once Golden Sky is vested at 100% by meeting all the payments and expenditures above, Metals Creek will retain a 2.0% Net Smelter Return (NSR) Royalty on any future mineral production. Golden Sky will have the right to purchase 50% of the NSR from Metals Creek for $1,000,000.
Alexander (Sandy) Stares, President and CEO of Metals Creek states, "We are delighted to find an option partner such as Golden Sky that is active in the Yukon for an option agreement on the Squid East property. This agreement allows for the Squid East Project to receive the exploration it deserves while Metals Creek remains committed to and focused on the Dona Lake Gold Project in northwestern Ontario and the Ogden Project in Timmins."
John Newell, President and CEO of Golden Sky Minerals Corp. states, "Golden Sky Minerals and the geological team are excited to compile the recently acquired Squid data and get boots on the ground as soon as possible. We plan on confirming and expanding the known showings but also investigating areas that previous exploration may have overlooked. To add to this, the Squid option is a neighbor to our recent bonanza-grade discovery of Hotspot. We plan on using what we've learned at Hotspot and applying some of the same techniques at Squid East."
The foregoing proposal may be subject to Exchange approval, in which regard the parties will provide such assistance and cooperation as may reasonably be required.
Wayne Reid, P.Geo, a Director for the Company and a qualified person as defined in National Instrument 43-101, is responsible for this release, and supervised the preparation of the information forming the basis for this release.
Metals Creek Resources Corp. is a junior exploration Corporation 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 TSXV under the symbol MEK, on the OTCQB under the symbol MCREF, and on the FRA under the symbol M1C1. Metals Creek has earned a 50% interest in the Ogden Gold Property from Newmont Corporation, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario and has an 8 km strike length of the prolific Porcupine-Destor Fault (P-DF). In addition, Metals Creek has signed an agreement with Newmont Corporation, where Metals Creek can earn a 100% interest in the past producing Dona Lake Gold Project in the Pickle Lake Mining District of Ontario.
Metals Creek also has multiple quality projects available for option in Ontario and Newfoundland which can be viewed on the Corporation's website. Parties interested in seeking more information about properties available for option can contact the Corporation at the number below.
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
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/116841