White Metal Executes LOI to Sell Pickle Lake Properties
Thunder Bay, Ontario--(Newsfile Corp. - August 2, 2017) - White Metal Resources Corp. (TSXV: WHM) ("White Metal" or the "Company") is pleased to announce that it has signed a Letter of Intent ("LOI") with Ardiden Limited. ("Ardiden").The LOI will allow Ardiden to acquire a 100% interest in all of White Metal's Pickle Lake projects and will assume the obligations of all existing underlying option agreements on these properties (collectively the "Project").
Ardiden can acquire a 100% interest in the Project claims for aggregate payments of $140,000 and 5,592,949 Ardiden shares as follows (all funds are in Canadian dollars):
Ardiden shall pay White Metal a non-refundable deposit of $70,000 and 1,592,949 Ardiden shares within 5 business days of executing the LOI;
Ardiden will have the exclusive right to complete due diligence on the project for 12 months (to allow access to site in the 2017 field season). After 6 months Ardiden is required to make an additional payment of $20,000 and 1,000,000 Ardiden shares to retain the exclusive due diligence right for the remaining six months;
Upon completion of due diligence, Ardiden may elect to exercise the option to acquire the Project; and
Should Ardiden elect to acquire the Project, Ardiden shall pay the Company a further $50,000 and 3,000,000 in Ardiden shares.
White Metal will maintain the right to purchase the existing 1% NSR held by Murchison Minerals Ltd. ("Murchison") on the Murchison joint venture claims on the Dorothy-Dobie and Kasagiminnis properties of which 0.5% can be purchased for $1,000,000 and the second 0.5% that may be purchased for $1,500,000 and a the right of first refusal ("ROFR") on the NSR. The original vendor of the Kasagiminnis property will retain a 2% NSR of which 1% can be purchased by Ardiden Ltd for $1,000,000 along with a ROFR on the remaining 1%.With respect to the newly acquired claims located within the Dorothy-Dobie claim group, the "Kukkee Option" (see press release dated July 4, 2016), the vendor retains a 2% NSR of which 1% can be purchased by Ardiden for $1,000,000 with Ardiden retaining a ROFR on the remaining 1% NSR from the original vendor.In addition, White Metal will hold a 1% NSR on this same Kukkee Option claim group. White Metal will retain a 2% NSR on the 100%-owned West Pickle and South Limb Properties of which 1% can be purchased by Ardiden for $1,000,000. Ardiden will have a ROFR on the remaining 1% NSR.
The Company remains focused on its 100%-owned Shebandowan property where it has since completed a second phase of its exploration program which included mechanical trenching of three favourable areas outlined by soil geochemistry. The Company has submitted 88 samples to Activation labs in Ancaster Ontario and are currently awaiting results.
In addition, the Company would like to thank the Northern Ontario Heritage Fund and Ontario Prospector's Association for a $90,321 grant that was recently received by the Company under the Junior Exploration Assistance Program related to work carried out at the Pickle Lake projects in the fall of 2016.
About White Metal Resources Corp:
White Metal Resources Corp is a junior exploration company exploring in Ontario, Canada and currently has 35,591,073 common shares issued and outstanding.
On behalf of the Board of Directors of White Metal Resources Corp.
"Michael Stares"
Michael Stares, President and CEO
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The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements.These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances.Actual events or results could differ materially from the Company's expectations or projection
For further information contact:
Michael Stares
684 Squier St.
Thunder Bay, ON P7B 4A8
Phone:(807) 628-7836
Fax:(807) 475-7200