Vancouver, British Columbia--(Newsfile Corp. - April 27, 2020) - SKRR Exploration Inc. (TSXV: SKRR) ("SKRR" or the "Company") is pleased to announce that it has signed a non-arm's length option agreement dated April 26, 2020 (the "Option Agreement") to acquire 100% of the Irving Lake property, consisting of ten mineral claims encompassing approximately 6,457.14 hectares, located in the province of Saskatchewan, approximately 120 km northeast of the town of La Ronge (the "Property") from Edge Geological Consulting Inc. ("Edge"). Edge holds 100% unencumbered title rights to ten non-contiguous mineral claims encompassing the Property.
Irving Lake Property Summary
The mineral dispositions cover prospective sections of the Pine Lake greenstone belt, located within the Glennie lithostructural domain. The Property is centered ~20km south of SSR Mining's Seabee and Santoy Gold Mines. Seabee is Saskatchewan's largest orogenic gold deposit. Highlights of the Seabee Gold Operation are: Measured and Indicated mineral resources of 1,050,000 ounces of gold at an average grade of 10.61 g/t and Inferred mineral resource of 583,000 ounces of gold at an average grade of 8.5 g/t: as of December 31, 2019. Annual cash costs for 2019 US$464 per payable ounce of gold sold (see SRR Mining Inc. - MD&A for the Year Ended 2019). The Pine Lake greenstone belt is metavolcanic sequence of rocks that strikes west from the north-south trending Tabbernor Lake fault system, a major crustal shear system transecting the Trans Hudson Orogeny. Splays off the Tabbernor fault system in the Laonil Lake region 20 km to the north contain shear hosted gold mineralized quartz veins which typify ore-hosting structures at the Seabee Gold Operations.
Claims held by Edge lie within 1 kilometre of all significant metal occurrences in the southern Pine Channel supracrustal belt. These showings include the Leland Lake gold mineralized shear hosted quartz veins with reported historic rock samples up to 57 g/t Au, the Duck Lake and Robinson Lake showings with reported historic assays up to 3.2 g/t Au in outcrop, and the Sun Claims area with reported historic drill intersections up to 5.5% Cu, 1.9% Zn and 0.31 g/t Au over 0.5m width in drill hole.]. The trend of mineralization parallels the structural and stratigraphic sequence of these shear zones, which run through the Property. Mineralization hosted on nearby properties is not necessarily indicative of mineralization that may be hosted on the Irving Lake property.
Sherman Dahl, CEO of SKRR stated, "At SKRR exploration, we have the management and board expertise, high quality assets, balance sheet strength and focus on exploration excellence that will generate value and growth for our shareholders. Further, SKRR is committed to uncovering the immense opportunity in the Trans Hudson Corridor in Saskatchewan."
Terms of the Option Agreement
Under the terms of the Option Agreement, SKRR has the option to acquire a 100% interest in the Property by SKRR (i) making a cash payment of $8,000 within five days of TSX Venture Exchange (the "Exchange") approval of the Option Agreement; and (ii) incurring total exploration expenditures of $600,000 over a three year period.
Edge will act as operator for exploration programs on the Property during the term of the Option Agreement. Work programs and budgets will be prepared by Edge and subject to the prior written approval of SKRR.
The Option Agreement is not an "Arm's Length Transaction" as such term is defined in the Exchange's Policy 1.1 and therefore constituted a "related party transaction" as such term is defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Ross McElroy is a director of the Company and is also a director of Edge.
In respect of the requirements of MI 61-101 and Exchange Policy 5.9, the Company relied on the exemptions from the formal valuation and minority approval required under MI 61-101. The Company was exempt from the formal valuation requirement of MI 61-101 in reliance of sections 5.5(b) as no securities of the Company are listed on the specified markets outlined therein. Additionally, the Company was exempt from minority shareholder approval of MI 61-101 in reliance of section 5.7(1)(a) (fair market value not more than 25% of the Company's market capitalization).
In accordance with the Exchange's Policy 5.3, the Option Agreement constitutes a "Reviewable Transaction", as such transaction involves a "Non-Arm's Length" party.
The Option Agreement is subject to acceptance by the TSX Venture Exchange.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Ross McElroy P.Geol, a director of the Company and a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosurefor Mineral Projects.
About SKRR Exploration Inc.:
SKRR is a Canadian-based precious metal explorer with properties in Saskatchewan - one of the world's highest ranked mining jurisdictions. The primary exploration focus is on the Trans-Hudson Corridor in Saskatchewan in search of world class precious metal deposits. The Trans-Hudson Orogen - although extremely well known in geological terms has been significantly under-explored in Saskatchewan. SKRR is committed to all stakeholders including shareholders, all its partners and the environment in which it operates.
ON BEHALF OF THE BOARD
Sherman Dahl
President & CEO
Tel: 250-558-8340
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.
Forward-Looking Information
This news release contains "forward‐looking information or statements" within the meaning of applicable securities laws, which may include, without limitation, statements that address the TSX Venture Exchange approval of the Option Agreement, future exploration work on the Property, other statements relating to the technical, financial and business prospects of the Company, its projects and other matters. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. 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 the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of metals, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including those filed under the Company's profile on SEDAR at www.sedar.com. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather conditions, failure to maintain all necessary government permits, approvals and authorizations, failure to maintain community acceptance (including First Nations), increase in costs, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.
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