Metals Creek Resources and Anaconda Mining Renegotiates Terms of the Jacksons Arm and Tilt Cove Agreements
Toronto, Ontario--(Newsfile Corp. - November 12, 2019) - Metals Creek Resources Corp. (TSXV: MEK) (OTC: MCREF) (Metals Creek or the "Company") is pleased to announce that the company has renegotiated the terms for the Jacksons Arm and Tilt Cove Property Agreements in Newfoundland and Labrador with Anaconda Mining Inc. (TSX: ANX) (OTCQX: ANXGF) ("Anaconda"). The renegotiated payments represent an aggregate increase in value of approximately $20,000 for the Company in exchange for extending the anniversary of certain option payments. See MEK News Release dated 07 November 2016 for original agreements.
Jacksons Arm Agreement
On October 15, 2019, Anaconda and Magna Terra Minerals Inc. (TSXV: MTT) ("Magna Terra") announced they have entered into a definitive share purchase agreement dated October 14, 2019, whereby Magna Terra proposes to acquire all of the issued and outstanding common shares of Anaconda's wholly owned subsidiary, 2647102 Ontario Inc. (ExploreCo). ExploreCo owns a 100-percent interest in the Great Northern and Viking projects in Newfoundland and Labrador, and the Cape Spencer project in New Brunswick. The Jacksons Arm Project is part of ExploreCo's Great Northern Project.
Under the revised terms of the Jacksons Arm Agreement, on or before the November 7, 2019 Anaconda will issue to Metals Creek 50,000 Consideration Shares (see definition below), and on or before January 6, 2020 - $20,000 in cash by wire transfer and $70,000 in Consideration Shares.
All other terms of the agreement remain unchanged.
Tilt Cove Agreement with Anaconda
Under the revised terms of the Tilt Cove Agreement,to maintain the Option with respect to the Licenses in full force, ANX shall pay to MCR the following amounts:
- on the Effective Date (November 7, 2016) - $20,000 in cash by wire transfer and 50,000 Consideration Shares (see definition below); (Paid)
- on the first anniversary of the Effective Date - $40,000 in cash by wire transfer and 100,000 Consideration Shares; (Paid)
- on the second anniversary of the Effective Date - $60,000 in cash by wire transfer and 150,000 Consideration Shares;(Paid)
- On the third anniversary of the Effective Date - $20,000 in cash and 100,000 Consideration Shares;
- On or before February 6, 2020 - $20,000 in cash;
- On or before May 6, 2020 - $20,000 in cash; and
- On or before August 6, 2020 - $20,000 in cash.
To further maintain the Option in full force with respect to the Licenses, Anaconda shall fund Expenditures with respect to the Licenses aggregating a minimum of $150,000 at any time or times during the Option Period.
All other terms of the agreement remain unchanged.
Under the Jacksons Arm Agreement the Consideration Shares shall be issued as fully paid and non-assessable shares and shall form part of a class of shares that is listed and posted for trading on an Exchange and shall be free and clear of all restrictions on trading other than those required by applicable Laws.
For clarity, the number of Consideration Shares set forth herein refers to common shares in the capital of the Optionee as constituted on the date hereof. Such number of common shares shall be subject to adjustment, as deemed necessary by the directors of the Optionee, acting reasonably from time to time, including without limitation, upon the occurrence of a subdivision or consolidation of the common shares in the capital of the Optionee.
Under the Tilt Cove Agreement the number of Consideration Shares set forth herein refers to common shares in the capital of Anaconda as constituted on the date hereof. Such number of common shares shall be subject to adjustment, as deemed necessary by the directors of the Optionee, acting reasonably from time to time, including without limitation, upon the occurrence of a subdivision or consolidation of the common shares in the capital of the Optionee.
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 from Newmont Goldcorp, 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 recently signed an agreement with Newmont Goldcorp, where Metals Creek can earn a 100% interest in the past producing Dona Lake Gold Project in the Pickle Lake Ming District of Ontario. Metals Creek also has an option agreement with Quadro Resources on Metals Creek's 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 also has an agreement with Manning Ventures on the Metals Creeks Squid East project located in the Yukon. Metals Creek is 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 Company is contained in documents filed by the Company 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
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/49648