ArcWest Exploration and Sanatana Resources Close Year One Obligations Under Earn-In Agreement for the Oweegee Dome Porphyry Copper-Gold Project in British Columbia's Golden Triangle
Sanatana Closes $600,000 Private Placement with Teuton Resources
Vancouver, British Columbia--(Newsfile Corp. - April 26, 2022) - Sanatana Resources Inc. (TSXV: STA) ("Sanatana") and ArcWest Exploration Inc. (TSXV: AWX) ("ArcWest") are pleased to announce the completion of Sanatana's year one obligations (the "Year One Obligations") under the earn-in agreement between ArcWest and Sanatana (the "Earn-In Agreement") to explore ArcWest's Oweegee Dome porphyry copper-gold project in British Columbia's Golden Triangle (the "Oweegee Project").
Pursuant to the Earn-In Agreement, Sanatana can earn an initial 60% interest (the "First Option") in the Oweegee Project by funding, over a four-year period, cumulative exploration expenditures of $6,600,000 and by making staged cash and share payments totaling $500,000 and 2,000,000 common shares, respectively. Upon completion of the First Option and receipt of an initial interest notice from Sanatana, Sanatana will have a 60 day period to elect to earn an additional 20% interest in the Oweegee Project, for an aggregate 80% interest (the "80% Interest"), or to form a joint venture with ArcWest.
Further to Sanatana's news release dated April 22, 2022, Sanatana has fulfilled the following Year One Obligations required to keep the First Option in good standing:
- paying to ArcWest an aggregate of $50,000 by December 31, 2021 (the "Cash Payment");
- issuing to ArcWest 300,000 common shares of Sanatana (each, a "Sanatana Share") by December 31, 2021 (the "Share Issuance");1 and
- incurring not less than $600,000 in exploration expenditures on the Oweegee Project by November 30, 2021.
ArcWest waived the requirement for Sanatana to complete the Cash Payment and Share Issuance by December 31, 2021, which remained subject to approval of the TSX Venture Exchange (the "Exchange"). The Exchange approved the completion of the Cash Payment and Share Issuance on April 22, 2022, and Sanatana has now fulfilled all of the Year One Obligations. The 300,000 Sanatana Shares were issued to ArcWest at a deemed price of $0.08 per Sanatana Share, being the closing price of the Sanatana Shares on the Exchange on July 20, 2021. To continue to keep the First Option in good standing, Sanatana is required to fulfill the following obligations by December 31, 2022:
paying to ArcWest an additional $50,000;
issuing to ArcWest an additional 400,000 Sanatana Shares; and
incurring cumulative exploration expenditures on the Oweegee Project of not less than $1,600,000, including a minimum of 1,000 meters of drilling.
Pursuant to a finder's agreement between Sanatana and Nathan Skubovius (the "Finder"), a finder's fee (the "Finder's Fee") equal $25,000 and 250,000 common shares is payable by Sanatana to the Finder. If Sanatana exercises its option to acquire the 80% Interest, a further 225,000 common shares is payable by Sanatana to the Finder.
Private Placement with Teuton Resources
Further to its news release dated March 1, 2022, Sanatana is also pleased to announce that it closed its private placement with Teuton Resources Corp. ("Teuton"). Pursuant to the private placement, Sanatana issued Teuton 4,000,000 units (the "Units") of the Company priced at $0.15 per Unit for gross proceeds of $600,000. Each Unit consisted of one share and one-half of a share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable to acquire a further common share at a price of $0.20 per common share for a period expiring on April 26, 2024.
The net proceeds from the private placement will be used to fund the upcoming drilling and exploration of Oweegee and for general working capital purpose.
All securities issued in the private placement are subject to a statutory hold period expiring on August 27, 2022 (being four months and a day from the date of issuance).
About the Company
Sanatana Resources Inc. is a mineral exploration and development company focused on high-impact properties in Canada. With an award-winning technical team and experienced management and board of directors, Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSXV: STA).
SANATANA RESOURCES INC.
(signed) "Peter Miles"
Chief Executive Officer
For additional information on the Company, please contact Mr. Peter Miles, Chief Executive Officer at (604) 408-6680 or email email@example.com.
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Cautionary Statement Regarding "Forward-Looking" Information
This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements related to the Company's exploration program for Oweegee.
Forward-looking statements and information can be identified by the use of words such as "plans", "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933 , as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, US persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
1 The common shares have a statutory hold period expiring on August 27, 2022 (being four months and a day from the date of issuance).
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