Scottie Resources Consolidates Key Claims to Become Substantial Golden Triangle Area Play
TSX VENTURE: SCOT
VANCOUVER, British Columbia, April 30, 2019 (GLOBE NEWSWIRE) -- Scottie Resources Corp. (the “Company”) (TSXV:SCOT) is pleased to announce that it has entered into an option agreement to acquire a 100% interest in an extensive land package directly adjacent to the Company's 100%-owned Scottie Gold Mine property. The mineral claims comprising the land package cover more than 1,500 hectares in the Golden Triangle area of British Columbia.
"The optioning of this land package is momentous for Scottie Resources", commented Thomas Mumford, the Company's VP, Exploration. "It fundamentally changes the potential of the Scottie Gold mine property by substantially expanding our previously restricted footprint. Prior to this acquisition, high grade gold mineralization was known to exist along our property borders but we were unable to properly advance it. With this new opportunity to explore the entire mineralizing system we are eager to get boots on the ground this summer."
Pursuant to the terms of the option agreement between the Company and an arm's length third party, the Company has the exclusive right to acquire a 100% interest in the property, subject to a 1.8% gross smelter return royalty, for aggregate consideration of $250,000 in cash and 2,200,000 common shares of the Company, exercisable as follows:
|Upon TSXV Approval||$||50,000||200,000|
|1st Year Anniversary||$||50,000||400,000|
|2nd Year Anniversary||$||50,000||500,000|
|3rd Year Anniversary||$||50,000||500,000|
|4th Year Anniversary||$||50,000||600,000|
The Company has the right to re-purchase 0.8% of the royalty for $1 million at any time. The option agreement remains subject to approval of the TSX Venture Exchange.
In addition, the Company is pleased to announce that it has purchased additional adjacent mineral claims, covering a total of over 500 hectares, for $7,000 in cash.
In order to assist the Company with its short-term working capital needs, the Company has entered into short-term loan agreements whereby it has borrowed a total of $260,000, of which $180,000 is from Bradley Rourke, a director and officer of the Company, and $80,000 is from Aeternum Capital Inc. The loans are unsecured, pay interest at 15% per annum, and are to be repaid by the later of (a) June 28, 2019; and (b) the date on which the lender makes a demand for repayment in writing (up to a maximum term of five years). Subject to approval of the TSX Venture Exchange, up to 980,000 bonus warrants will be issued to the lenders in connection with the loans, with each bonus warrant being exercisable at a price of $0.21 per share for a period of one year.
ABOUT SCOTTIE RESOURCES CORP.
Scottie owns a 100% interest in the high grade, past-producing Scottie Gold Mine property and has the option to purchase a 100% interest in the Bow property which is contiguous with the Scottie Gold Mine property. Scottie owns 100% interests in the Ruby Silver and Black Hills properties and has the option to purchase a 100% interest in the Bitter Creek property which joins the Ruby Silver property with the Black Hills property.
All of the Company’s properties are located in the area known as the Golden Triangle of British Columbia which is among the world’s most prolific mineralized districts.
ON BEHALF OF THE BOARD OF DIRECTORS
President & CEO
FORWARD LOOKING STATEMENTS
This news release may contain forward‐looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward‐looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward‐looking statements whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.