METALS CREEK CLARKS BROOK OPTION PARTNER GENERAL GOLD COMPLETES LISTING ON THE CSE
Metals Creek Resources Corp. has been advised by its option partner, General Gold Resources Inc., that the common shares of General Gold has commenced trading on the Canadian Securities Exchange, effective Feb. 1, 2021 (see General Gold's news release dated Jan. 29 2021). General Gold has entered into an option agreement with Metals Creek whereby General Gold can acquire a 100% of the right, title and interest in and to the Clark's Brook Property in central Newfoundland.
In order to maintain the Option Agreement in good standing, General Gold must issue an aggregate of 1,500,000 common shares of General Gold (200,000 received) and make cash payments totaling $225,000 ($50,000 received) over a three year period. If General Gold does not make any or all of the cash payments or issue any or all of the common shares, it will be in default under the Option Agreement and all right and title to the Clark's Brook Property shall remain with MEK. If the option is exercised in accordance with the terms of the Option Agreement, General Gold will reserve to MEK a 2% net smelter royalty (the "NSR") on the mineral claims, provided, however, that General Gold shall have the right at any time to purchase from MEK 1% of the NSR in consideration for a one-time payment of the sum of $1,000,000.
Alexander (Sandy) Stares states "This is another example of how Metals Creek can remain focused on our flagship projects at Dona Lake and Timmins, while optimizing opportunities to advance these other properties through option agreements. The Clarks Brook property is surrounded to the North, East and South by New Found Gold and located along the same geological structure as New Found Gold's Queensway property, where significant drill intercepts are still being encountered (see New Found Golds news dated 14 January 2021).
MEK has current option agreements on a number of its projects including: Squid (Yukon) to Manning Ventures Inc., Flint Lake (Ontario) to Manning Ventures Inc, Clarks Brook (NL) to General Gold and Yellow Fox/Careless Cove (NL) to Quadro Resources.
It also retains a NSR on Quadro Resources' Staghorn Project in Newfoundland and Labrador as well as portions of Anaconda Mining Inc. Tilt Cove Project and a portion of Magna Terra Minerals Inc. Great Northern Project. MEK retains the upside to these projects thru the cash and share issuances as well as NSRs.
Wayne Reid, P. Geo., a director of MEK, is the "qualified person" as defined in NI 43-101, who has reviewed and approved the technical content in this press release.
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 TSX-V Exchange under the symbol "MEK". Metals Creek has earned a 50% interest in the Ogden Gold Property from Newmont Corporation, which covers an 8 km strike length of the prolific Porcupine-Destor Fault (P-DF) and includes the former Naybob Gold mine, located 6 km south of Timmins, Ontario. In addition, Metals Creek has signed an agreement with Newmont Corporation, whereby Metals Creek can earn a 100% interest in the past producing Dona Lake Gold Project in the Pickle Lake Mining District of Ontario.
Metals Creek also has multiple quality projects available for option in Ontario and Newfoundland which can be viewed on the Company's website. Parties interested in seeking more information about properties available for option can contact the Company at the number below.
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