TORONTO, ONTARIO--(Marketwired - April 12, 2017) - Metals Creek Resources Corp. (TSX VENTURE:MEK) ("Metals Creek") and Benton Resources Inc. (TSX VENTURE:BEX) ("Benton") are pleased to announce that they have jointly executed a letter of intent (the "Agreement") with a Newfoundland prospector pursuant to which MEK and BEX have been granted the option to acquire a 100% interest (50% each) in 22 claim units (the "Property") located in the Victoria Lake area, Central Newfoundland.
Under the Agreement, Metals Creek and Benton will make staged payments to the Vendor totaling $45,000 ($5,000 on signing) and 425,000 common shares (50,000 on signing) over a three year period. All cash and share payments will be split 50% Metals Creek and 50% Benton. The Vendor will retain a 2% net smelter return ("NSR") on the Property. Metals Creek / Benton will have the right to buy back 1% of the NSR for $1,000,000. This transaction is subject to TSX Venture Exchange approval as well as a due diligence period expiring June 15, 2017. The optioned property will be folded into the Staghorn Project which Benton is earning a 60% interest into. The Staghorn Project covers a portion of the regional Cape Ray Fault Zone that hosts a number of significant gold deposits including Marathon Gold's Valentine Lake deposit, located 30km to the northeast and Benton's Cape Ray gold deposits approximately 100 km to the southwest.
The optioned property is contiguous with the northeast boundary of the Staghorn Gold Project. Recent prospecting by the vendor resulted in the discovery of several areas of mineralized outcrop and float along a 1.6 kilometer strike length on the Property. Selective grab samples submitted by the vendor returned gold values up to 18.86 grams per tonne ("gpt"), 61gpt silver, 1.7% copper, 0.59% lead, 0.15% antimony, and 2.76% zinc (not all in same sample). Most of the gold-bearing samples are described as quartz-carbonate material with varying amounts of pyrite, chalcopyrite, arsenopyrite and galena. Highlights from the most recent samples collected from an outcropping area of a gossanous felsic volcanic unit cut by numerous quartz veins where three of these samples returned assays of 18gpt, 7gpt and 1gpt gold. The mineralization appears to be related to an east-west fault that traverses the property and may be a splay off the auriferous Cape Ray Fault system.
In addition, Metals Creek / Benton have staked an additional 30 claim units to the north and west of the optioned claims.
Metals Creek and Benton plan on a complete property review once spring breakup is over and weather conditions allow for additional sampling. This new acquisition enhances the value of the Staghorn Gold Project and adds a number of new untested gold targets to the project.
Wayne Reid (PGeo) is a director of the company and is responsible for the preparation of this News 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 Exchange under the symbol "MEK". Metals Creek has earned a 50% interest in the Ogden Gold Property, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario and has a 8 km strike length of the prolific Porcupine-Destor Fault (P-DF) that stretches between Timmins, Ontario and Val d'Or, Quebec. The Company has also recently entered into an Option/JV with Trifecta Gold Ltd. on Metals Creek's Squid properties in Yukon. Metals Creek also has a JV with Benton Resources on Metals Creeks Staghorn Gold Project in Newfoundland as well as two option agreements with Anaconda Mining Inc. on Metals Creek's Jacksons Arm and Tilt Cove Properties also in Newfoundland. The company is engaged in the identification, acquisition, exploration and development of other mineral resource properties, and presently has mining interests in Ontario, Yukon and Newfoundland and Labrador. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under its profile at www.sedar.com. 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.