Metals Creek Resources Completes Due Diligence Visit on 10 Patented Mining Claims in Garrison Township
Metals Creek also Announces $200,000 Private Placement
Toronto, Ontario--(Newsfile Corp. - June 20, 2018) - Metals Creek Resources Corp. (TSXV: MEK) (Metals Creek or the company) is pleased to announce that the company has completed a due diligence visit to the 10 Patented mining claims (The Patents) in Garrison Township, approximately 35 kms north-northeast of Kirkland Lake, Ontario. The patents are contiguous with Osisko Mining to the west, south and east and contiguous with Kirkland Lake Gold to the north. (See Map on the company's website).
During the due diligence, representatives of the company collected 16 selective rock grab samples that were submitted for gold analysis. Assay results range from 7 parts per billion (ppb) gold up to 6280 ppb gold, with 62.5% of the samples returning in excess of 1 g/t (gram per tonne) gold. (see chart below). Mineralization was traced for 307m, consisting of 1-15% disseminated pyrite with local galena and chalcopyrite. The host rock is strongly albitized mafic volcanics with associated quartz veining and stockwork.
|Sample Number ||Gold in ppb |
Metals Creek can earn a 100% interest in the patents by making cash payments totaling $310,000 over a period of 4 years following the execution of the LOI. The vendors will retain a 2% NSR which the Company can purchase 1% for $1 million. This agreement is subject to a 30 day due diligence period by the company.
Alexander (Sandy) Stares states, "The due diligence visit clearly confirms gold mineralization on the Garrison patents. Metals Creek is actively planning a grid for the purpose of conducting a ground geophysical survey over the area and followed by detailed mapping and prospecting with the intention of prioritizing targets for diamond drilling."
The surface grab samples mentioned in this release are selective by nature and are unlikely to represent average grades of the property.
In conjunction with the work program planned for the Garrison Property, the company announces a private placement to cover costs associated with the planned work. The company is offering, by private placement, of up to 1 million non flow-through units at a price of $0.05 per unit, and up to 2.5 million flow-through units at a price of $0.06 per unit, for aggregate gross proceeds up to $200,000.
Each non-flow through unit issued in the private placement will consist of one common share and one common share purchase warrant, each warrant entitling the holder to acquire one common share at an exercise price of $0.10 for a period of 24 months following the issuance date.
Each flow-through unit issued in the private placement will consist of one common share and one half of one common share purchase warrant, each whole warrant entitling the holder to acquire one common share at an exercise price of $0.10 for a period of 24 months following the issuance date.
Arm's length third parties assisting in the private placement will be entitled to cash commission equal to 6% of gross proceeds raised and broker warrants equal to 8% of placed securities (each broker warrant entitling the holder to acquire one common share of the Corporation for $0.10 for a period of 24 months following the issuance date of the units).
The above mentioned private placement is subject to exchange approval.
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 an 8 km strike length of the prolific Porcupine-Destor Fault (P-DF) that stretches between Timmins, Ontario, and Val d'Or, Quebec. 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 also has an option agreement on its Clarks Brook property with Sokoman Iron Corp. and 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, including the recently acquired Great Brehat project on the Great Northern Peninsula of Newfoundland. 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.
Alexander (Sandy) Stares, President and CEO
Metals Creek Resources Corp
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