White Metal to Complete Sale of Its Pickle Lake Gold Properties and Retain Certain Royalties
Thunder Bay, Ontario--(Newsfile Corp. - July 31, 2018) - White Metal Resources Corp. (TSXV: WHM) ("White Metal" or The "Company") is pleased to announce the following:
Pickle Lake Gold Properties
White Metal has received notice that Ardiden Ltd. ("Ardiden"), intends to exercise its option to acquire 100% ownership of the Pickle Lake Properties located in the Province of Ontario (see News release dated August 1, 2017, "White Metals signs LOI to sell Pickle Lake Properties").
Ardiden is a public company which has shares listed on the Australian Securities Exchange (ASX:ADV). Under previous agreements executed in 2017, Ardiden agreed to pay to White Metal for White Metal's Pickle Lake Properties, a total of $140,000 and to issue 5,592,949 Ardiden common shares under certain terms (all funds are in Canadian dollars).
To date, Ardiden has made the following payments to White Metal: $70,000 and 1,592,949 Ardiden common shares (received) within 5 business days of executing the agreements; after 6 months following the agreements, Ardiden paid to White Metal $20,000 and issued 1,000,000 Ardiden common shares (received). As a final payment, Ardiden has agreed to pay to White Metal a further $50,000 and issue a further 3,000,000 Ardiden common shares.
Among the Pickle Lake Properties, White Metal retains certain royalties or rights to purchase royalties. Highlights of such royalties can be summarized, in part, as follows:
Murchison Joint Venture Claims
The Murchison Joint Venture Claims, which are part of the Pickle Lake Properties sold to Ardiden, include the Dorothy-Dobie and Kasagiminnis properties (but exclude what is referred to as the Kukee Claims (see below)). White Metal will maintain the right to purchase the existing 1% Net Smelter Return Royalty ("NSR"), held by Murchison Minerals Ltd. on the Murchison Joint Venture Claims, of which a 0.5% NSR can be purchased by White Metal for $1,000,000 and a second 0.5% NSR can be purchased by Whte Metal for $1,500,000.
With respect to the Ken Kukkee claims located within the Dorothy-Dobie claim group, which are part of the Pickle Lake Properties sold to Ardiden, White Metal Resources will hold a 1% NSR.
Pickle Lake West and South Limb Properties
White Metal will retain a 2% NSR on the Pickle Lake West and South Limb Properties, which are part of the Pickle Lake Properties sold to Ardiden, of which a 1% NSR can be purchased by Ardiden for $1,000,000. Ardiden will have a Right of First Refusal on the remaining 1% NSR.
Jean-Pierre Colin, President, CEO of White Metal stated,
While our new gold discoveries at our Gunners Cove Gold Project in Newfoundland remain our focus, we are pleased to note that Ardiden has continued to indicate interest in the Pickle Lake Properties in Ontario which were sold via previous agreements in 2017.
As White Metal retains certain royalties on some of the Pickle Lake Properties, we continue to monitor Ardiden's exploration with interest. It is especially important that Ardiden has announced noteworthy gold assays in some of their recent press releases of July 2018. This is a great advancement.
Of importance, it is paramount to note that our attention is exclusively turned to our extremely promising Gunners Cove Gold Property in Newfoundland; however, this historical transaction with Ardiden that is coming to fruition on our previous Ontario endeavours is 100% consistent with our new corporate strategy. Ardidien is clearly our perfect counterpart for the Pickle Lake Properties and we trust that they have all the ability required and that they can, in time, move our royalties further to their best possible potential. We see this transaction as a financial bonus and wish Ardiden the best!
Technical information in this news release has been reviewed and approved by Dr. Scott Jobin-Bevans (P.Geo.), Vice President Exploration and a Director of White Metal, who is a Qualified Person under the definitions established by the National Instrument 43-101.
For more information with respect to to the Gunners Cove Gold Property please visit the Company's Web Page at www.whitemetalres.com.
About White Metal Resources Corp (TSX-V: WHM):
White Metal Resources Corp. is a junior mineral exploration company exploring for gold in Canada.
On behalf of the Board of Directors of White Metal Resources Corp.
Jean-Pierre Colin, President, CEO and Director
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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:
684 Squier Street
Thunder Bay, Ontario, Canada, P7B 4A8
Phone: (807) 628-7836 Fax (807) 475 7200