Silk Road Energy Inc. to Acquire Gold Properties
Calgary, Alberta--(Newsfile Corp. - January 12, 2022) - Silk Road Energy Inc. (TSXV: SLK.H) ("Silk Road") announces its plans to acquire gold exploration properties owned by a private gold exploration company and constitutes a non-arm's length transaction pursuant to mining claim purchase agreement executed on December 20, 2021.
The vendor of the gold exploration properties is Record Gold Corp. ("Record Gold"), an Ontario-based, private gold exploration company. The transaction is a "related party transaction" as defined under MI 61-101 as Mr. Michael C. Judson is a director of Silk Road, a director and the President of Record Gold, a shareholder of Record Gold and a shareholder of Silk Road; Dr. Paul Craig is a director of Silk Road and a shareholder of Record Gold; Vladimir Katic is the President & CEO and a director of Silk Road and a shareholder of Record Gold, Derrick Colling is the CFO of Silk Gold and a shareholder of Record Gold and Mr. David A. Johnson is the Corporate Secretary of Record Gold and Silk Road and a shareholder of Record Gold.
Record Gold has agreed to exchange its 100 percent ownership of two concessions of gold and other precious metals claims located in the Kirkland Lake region of Ontario in return for 9 million shares of Silk Road at a price of $0.05 per share. Following the closing of the transaction, Silk Road would have a total of 27,592,788 issued and outstanding shares.
Record Gold's Amikougami property is a gold exploration concession located 4000 metres from the Macassa Mine owned by Kirkland Lake Gold and is adjacent to and shared with the claim block bordering the Macassa Mine in Ontario ("Amikougami").
The other gold exploration concession owned by Record Gold "Otto" is located approximately nine kilometres to the southwest of Kirkland Lake Gold's Macassa Mine in Ontario. Otto borders the Kirkland Lake Project.
The Amikougami and Otto gold properties consist of 16 patented mining claims including five mining licenses. The combined total for both properties is 192.56 hectares.
Geophysical surveying executed by the previous owner on the property identified several drill targets. According to anecdotal reports, grab samples taken from small pits on Amikougami contained significant gold grades. Similar results were reported from the Otto property as well.
Completion of the transaction is subject to a number of conditions, including TSX Venture Exchange ("TSXV") acceptance and if applicable, disinterested shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
For more information please contact:
Michael C. Judson, Director,
Silk Road Energy Inc.
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