Vancouver, British Columbia--(Newsfile Corp. - April 26, 2022) - ArcWest Exploration Inc. (TSXV: AWX) ("ArcWest") and Sanatana Resources Inc. (TSXV: STA) ("Sanatana") are pleased to announce the completion of Sanatana's year one obligations (the "Year One Obligations") under the earn-in agreement between ArcWest and Sanatana (the "Earn-In Agreement") to explore ArcWest's Oweegee Dome porphyry copper-gold project in British Columbia's Golden Triangle (the "Oweegee Project").
Pursuant to the Earn-In Agreement, Sanatana can earn an initial 60% interest (the "First Option") in the Oweegee Project by funding, over a four-year period, cumulative exploration expenditures of $6,600,000 and by making staged cash and share payments totaling $500,000 and 2,000,000 common shares, respectively. Upon completion of the First Option and receipt of an initial interest notice from Sanatana, Sanatana will have a 60 day period to elect to earn an additional 20% interest in the Oweegee Project, for an aggregate 80% interest, or to form a joint venture with ArcWest.
Further to ArcWest's press release dated April 21, 2022, Sanatana has fulfilled the following Year One Obligations required to keep the First Option in good standing:
- paying to ArcWest an aggregate of $50,000 by December 31, 2021 (the "Cash Payment");
- issuing to ArcWest 300,000 common shares of Sanatana (each, a "Sanatana Share") by December 31, 2021 (the "Share Issuance"); and
- incurring not less than $600,000 in exploration expenditures on the Oweegee Project by November 30, 2021.
ArcWest waived the requirement for Sanatana to complete the Cash Payment and Share Issuance by December 31, 2021, which remained subject to approval of the TSX Venture Exchange (the "Exchange"). The Exchange approved the completion of the Cash Payment and Share Issuance on April 22, 2022, and Sanatana has now fulfilled all of the Year One Obligations. The 300,000 Sanatana Shares were issued to ArcWest at a deemed price of $0.08 per Sanatana Share, being the closing price of the Sanatana Shares on the Exchange on July 20, 2021. To continue to keep the First Option in good standing, Sanatana is required to fulfill the following obligations by December 31, 2022:
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paying to ArcWest an additional $50,000;
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issuing to ArcWest an additional 400,000 Sanatana Shares; and
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incurring cumulative exploration expenditures on the Oweegee Project of not less than $1,600,000, including a minimum of 1,000 meters of drilling.
Pursuant to a finder's agreement between ArcWest and Nathan Skubovius (the "Finder"), a finder's fee (the "Finder's Fee") equal to 4% of Sanatana's cash and share payments to ArcWest under the Earn-In Agreement is payable to the Finder. 50% of the Finder's Fee is payable in cash and 50% of the Finder's Fee is payable by the issuance of common shares of ArcWest (each, an "ArcWest Share"). In satisfaction of the Finder's Fee payable in connection with the completion of the Year One Obligations, ArcWest has made a cash payment of $1,480.00 and issued 18,500 ArcWest Shares to the Finder.
For further information please contact: Tyler Ruks, President and CEO at +1 (604) 638 3695.
About ArcWest Exploration Inc.
ArcWest Exploration is a project generator focused on porphyry copper-gold exploration opportunities throughout western North America. The company owns eight copper-gold projects throughout British Columbia's premier porphyry copper-gold districts. These include ArcWest's Todd Creek and Oweegee Dome projects, which are two of the largest and most prospective land positions for copper-gold exploration in British Columbia's prolific Golden Triangle. Oweegee Dome neighbours Seabridge Gold's supergiant KSM-Iron Cap-Snowfield porphyry copper-gold deposit and Todd Creek neighbours Pretium's Brucejack mine property. Newcrest Mining recently completed the acquisition of Pretium and its high grade Brucejack gold-silver mine in a transaction valued at $3.5 billion. ArcWest's Oweegee Dome, Oxide Peak and Eagle projects are currently being advanced by exploration partners through earn-in and joint venture agreements, under which ArcWest's respective partners may earn up to an 80% interest in each project. Multiple ArcWest copper-gold projects are scheduled to undergo partner funded drill testing in 2022. By conducting partner funded exploration on multiple exploration projects simultaneously, ArcWest's chances of discovery are enhanced while exposing shareholders to minimal dilution. The company is managed by an experienced technical team with a track record of discovery and a reputation for attracting well-funded senior partners, including Freeport McMoRan, Robert Friedland group companies, ITOCHU, Antofagasta and Teck.
This news release contains statements about ArcWest's expectations and are forward-looking in nature. As a result, they are subject to certain risks and uncertainties. Although ArcWest believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and ArcWest undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/121690
