Metals Creek Options Flint Lake to Manning Ventures and Amends Terms of Squid East Option Agreement

2020-11-27 / @newsfile

 

Thunder Bay Ontario--(Newsfile Corp. - November 27, 2020) - Metals Creek Resources Corp. (TSXV: MEK) (the "Company" or Metals Creek) is pleased to announce that the company has signed an option agreement (the agreement) with Manning Ventures Inc, (CSE: MANN) ("Manning") whereas Manning has the right to earn a 100% interest of Metals Creeks 81.3 % interest in the Flint Lake project.

In order to exercise the Flint Lake Option, Manning must: (1) make cash payments to MEK of $145,000 over three years ($20,000 upon signing); (2) issue a total of 2,200,000 common shares of Manning to Metals Creek over three years (300,000 shares upon signing); and (3) incur work expenditures of $775,000 over three years. Upon exercise of the Flint Lake Option, MEK will retain a 1% NSR royalty, Manning will retain the right to purchase 50% of such NSR royalty from MEK upon payment of $500,000 at any time.

Metals Creek also announces that it has entered into an amending agreement dated November 25, 2020 (the "Squid East Amending Agreement") to amend the terms of the option agreement dated September 26, 2018 (as amended by the first amending agreement dated November 1, 2019, the "Previous Squid East Option Agreement") between Manning and MEK, pursuant to which Manning has the option (the "Squid East Option") to acquire a 75% interest in MEK's Squid East Property located in the northwest extension of the White Gold District, Yukon (the "Squid East Project").

In order to exercise the Squid East Option, Manning must incur exploration expenditures totaling $1,050,000, issue a total of 800,000 common shares of the Company and make a total of $55,000 in cash payments to MEK. The Amending Agreement amends these option exercise requirements, as follows:


Squid East Option AgreementSquid East Amending Agreement
Exploration Expenditures
  1. $50,000 by December 31, 2020
  2. $100,000 between January 1, 2021 and December 2021
  3. $300,000 between January 1, 2022 and December 31, 2022
  4. $700,000 between January 1, 2023 and December 31, 2023
  1. $50,000 by December 31, 2021
  2. $300,000 between January 1, 2022 and December 31, 2022
  3. $700,000 between January 1, 2023 and December 31, 2023
Share Issuances
  1. 600,000 common shares on or before the Company's listing date
  2. 600,000 common shares on or before December 31, 2020
  1. 600,000 common shares on or before the Company's listing date
  2. 200,000 common shares on or before December 31, 2021
Cash Payments
  1. $35,000 on or before the Company's listing date
  2. $30,000 on or before December 31, 2020
  1. $35,000 on or before the Company's listing date
  2. $20,000 on or before December 31, 2021
Annual Advance Minimum Royalty Payments$100,000 beginning on May 31, 2021 and annually thereafterNone.

 

The Previous Squid East Option Agreement, as amended by the Squid East Amending Agreement, is referred to as the "Squid East Option Agreement".

Further details of the Previous Squid East Option Agreement are disclosed in the Company's news release dated November 4, 2020. As of the date of this news release, Manning has made total cash payments of $35,000 and issued a total of 600,000 common shares to MEK under the Squid East Option Agreement.

Alexander (Sandy) Stares, President and CEO of Metals Creek states, "These Option Agreements allow for Metals Creek to remain focused on the Dona Lake Gold Project in Northwestern Ontario and the Ogden Project in Timmins while also receiving beneficial exposure through the shares, cash and NSR should a significant discovery be made on the optioned properties."

The transactions set out in the Flint Lake Option Agreement and the Squid East Option Agreement (each, an "Option Agreement") are subject to approval of the Canadian Securities Exchange and the TSX Venture Exchange.

In addition to its portfolio of projects, Metals Creek also holds a position of equities in other companies such as O3 Mining, Sokoman Minerals, Quadro Resources, Anaconda Mining, Benton Resources, White Metal Resources, Trifecta Gold, Manning Ventures (CSE: MANN), Magna Terra Minerals as well as others.

About Metals Creek Resources Corp.

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 Exchange under the symbol "MEK". 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

Metals Creek Resources Corp
telephone: (709)-256-6060
fax: (709)-256-6061
email: astares@metalscreek.com
www.MetalsCreek.com
Twitter.com/MetalsCreekRes
Facebook.com/MetalsCreek

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/69088

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