Mr. Michael Stares reports
WHITE METAL PROVIDES UPDATE ON DRILLING PROGRAM AND OPTIONS STRATEGICALLY LOCATED PATENT, TOWER STOCK GOLD PROJECT, ONTARIO
White Metal Resources Corp. has completed 1,500 metres of diamond drilling in seven drill holes, with a total of 557 core samples submitted to Activation Laboratories in Thunder Bay, Ont. The company is also pleased to announce that it has entered into an option agreement to purchase 100 per cent of an important freehold patent (the Nichols patent), located to the southeast of the Tower Stock gold property. The project, which has not seen any exploration activity for more than eight years, is located about 40 kilometres west-northwest of the port city of Thunder Bay and currently consists of 128 unpatented mining claim cells and three patent lands covering a total of approximately 1,968 hectares.
Michael Stares, president and chief executive officer of White Metal, commented: "We are very pleased to have purchased the Nichols patent which is another quality addition to the highly prospective Tower Stock gold project. This new addition to the land base adds yet another key component to covering key geological units and filling in important gaps in the lands to the southeast. The Nichols patent has seen very little historical exploration work and we look forward to getting on the ground and conducting our own exploration programs."
White Metal may exercise the option by providing the Nichols patent owners with the following consideration, which will be allocated equally between the optionors:
- Providing the optionors with a non-refundable deposit of $20,000 upon execution of this agreement (paid);
- Issuing to the optionors 300,000 common shares upon receipt of TSX Venture Exchange approval for the option subject to the standard exchange hold period;
- Paying to the optionors $30,000 and issuing a further 400,000 shares to the optionors on or before the first anniversary of the date of this agreement;
- Paying to the optionors $30,000 and issuing a further 500,000 shares to the optionors on or before the second anniversary of the date of this agreement; and,
- Paying to the optionors $70,000 and issuing a further 900,000 shares to the optionors on or before the third anniversary of the date of the date of this agreement.
Net smelter royalty
The Nichols patent will be subject to a 2-per-cent net smelter return royalty in favour of the optionors, of which 1 per cent can be purchased by the company for $1-million at any time. The optionors will, at any time, have the right to sell the 1-per-cent NSR not covered by the NSR purchase right subject to the company having a right of first refusal to purchase such interest.
Share bonus payment
White Metal will issue one million shares in the aggregate to the optionors in the event that a National Instrument 43-101 compliant economic mineral resource of 750,000 ounces of gold or greater is established on the property.
This agreement is pending exchange approval.
The Nichols patent is strategically located immediately east of the P zone, which has historical assays ranging from 1.58 to 11 grams per tonne gold. The Nichols patent is also located about 1,700 metres southeast of the U-V zone, which contains historical gold mineral resources. A qualified person has not done sufficient enough work to verify the historical assay results and technical information reported herein.
Technical information in this news release has been reviewed and approved by Dr. Scott Jobin-Bevans (PGeo), vice-president of exploration and a director of White Metal, who is a qualified person under the definitions established by the National Instrument 43-101.
About White Metal Resources Corp.
White Metal Resources is a junior exploration company exploring in Canada and southern Africa.
We seek Safe Harbor.
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