Sokoman Iron Corp Signs LOI with Metals Creek Resources Corp. on Clarks Brook Gold Property, Central Newfoundland
Toronto, Ontario--(Newsfile Corp. - August 23, 2017) - Metals Creek Resources Corp. (TSXV: MEK) (Metals Creek) and Sokoman Iron Corp. (TSXV: SIC) (Sokoman) are pleased to announce that they have signed a Letter of Intent (LOI) with outlining terms whereby Sokoman can earn up to 100% interest in the Clarks Brook Gold Property, located in central Newfoundland, pending TSX Venture exchange approval.
Highlights of the property include;
- Maximum grab samples in boulders to 24.5 g/t gold; maximum in bedrock to 19.24 g/t gold;
- the property is fully permitted for drilling;
- project approved for financial assistance (JEA) from the provincial government;
- Located on Central Newfoundland Gold Trend in structural corridor hosting Valentine Lake (Marathon Gold Corp.) and Antler Gold projects.
The Clarks Brook prospect was staked by vendor Metals Creek after a review of past work completed on the property and initial due diligence performed on the showing.The gold mineralization outlined on the Clarks Brook Property consisted of mineralized (silicified and disseminated pyrite/arsenopyrite bearing siltstone) angular boulders up to 3 meters in size initially discovered by Altius Minerals Corporation in 2004, and which has reported historic assays ranging from 2.98 g/t to 24.5 g/t gold.In 2009, Altius completed an Induced Polarization (IP) and Magnetics ground geophysical survey that outlined several targets but no drilling has been done on the geophysical or gold targets.
Subsequent field work by the vendor (MEK) resulted in the discovery in bedrock of similar style mineralization to that of the boulders returning a grab sample assay of 19.24 g/t gold. In addition, thirteen (13) of the large angular blocks were sampled and yielded assays ranging from 0.24 g/t to 10.4 g/t gold. Metals Creek has applied for and received drilling permits for the Clarks Brook Property.
To earn an initial 75% interest, Sokoman must make cash payments of $45,000 over three years (no cash on signing) and issue a total of 3,000,000 Sokoman common shares over three years (500,000 due upon regulatory approval) and incur work expenditures of $800,000 over three years ($100,000 by 1st anniversary).Sokoman will be the operator during the earn-in period. Once a 75% interest is earned by Sokoman, either a 75/25 joint venture will be formed, or Sokoman may elect to earn an additional 25% interest to bring its total property interest to 100%. The terms to increase its interest from 75% to 100% include payments of $100,000 and the issuance of an additional 2,000,000 Sokoman shares within 60 days of the 3rd anniversary date. This agreement is subject to regulatory approval.
Note: The MEK surface grab samples mentioned in this news release were grab samples which are selective by nature and are unlikely to represent average grades of the property.
Alexander (Sandy) Stares, President and CEO of Metals Creek states; "The acquisition of Clarks Brook provides Sokoman and its shareholders with a drill ready property in the active Central Newfoundland Gold Play.Metals Creek is a strong supporter and shareholder of Sokoman and the agreement is a good fit for both companies. MEK will maintain an interest in the property thru the share issuance and either the 75/25 SIC/MEK JV or the NSR. We look forward to a Phase 1 drilling program, as quickly as possible."
Timothy Froude,P.Geo and a qualified person (QP) as defined in National Instrument 43-101, is responsible for the information forming the basis for this release.
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. The Company has also recently entered into an Option/JV with Trifecta Gold Ltd. on Metals Creek's Squid properties in Yukon. 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 have also signed a LOI on its Clarks Brook property with Sokoman Iron Corp. andis 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 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."
For further information, please contact:
Alexander (Sandy) Stares, President and CEO
Metals Creek Resources Corp
telephone: (709)-256-6060
fax: (709)-256-6061
email: astares@metalscreek.com