TORONTO, ONTARIO--(Marketwired - Dec. 19, 2016) - Metals Creek Resources Corp. (the "Corporation")(TSX VENTURE:MEK) is pleased to announce that the Corporation has entered into an Option/Joint Venture agreement with Trifecta Gold Ltd. ("Trifecta"). Trifecta is a wholly owned subsidiary of Strategic Metals Ltd. ("Strategic Metals")(TSX VENTURE:SMD). Under the terms of the agreement, Trifecta can earn up to a 75% interest in MEK's Squid East and Squid West Properties, located in the northwest extension of the White Gold district, Yukon. The properties are 100% owned by MEK.
To earn an initial 60% interest, Trifecta must make cash payments of $45,000 over three years ($10,000 due upon regulatory approval), issue a total of 6,500,000 Trifecta shares over three years (1,000,000 due upon regulatory approval) and incur work expenditures of $2,250,000 over three years ($500,000 by 1st anniversary). Trifecta will be the operator during the earn-in period. Once a 60% interest is earned by Trifecta, either a 60/40 joint venture will be formed, or Trifecta may elect to earn an additional 15% interest to bring its total property interest to 75%. The terms to increase its interest from 60% to 75% include payments of $50,000 and 3,500,000 trifecta shares within 60 days of the 3rd anniversary date and incurring an additional $1,000,000 in exploration expenditures by the 4th anniversary. This agreement is subject to regulatory approval.
MEK initially staked the Yukon properties in February, 2011, during the staking rush that ensued after the discovery of the White Gold deposit. The claims are located proximal to the Matson Creek placer gold operations, approximately 80 km northwest of the Goldcorp's Coffee Project and 90 km southwest of Dawson City. Soil sampling, trenching and limited diamond drilling carried out in 2013 resulted in the discovery of a new gold-silver zone with characteristics similar to other discoveries in the White Gold district. Results included 22.0 meters of 1.96 g/t gold and 160.6 g/t Ag from trenching and 1.55 g/t gold and 114.1 g/t Ag over 21.0 m from the subsequent drilling (see MEK press releases dated August 6, 2013 and October 8, 2013.) The mineralized zone remains open in all directions and the thickness of the zone is not known as the discovery holes collared in mineralization.
The proposed transaction is subject to approval of the proposed spinout of Trifecta from Strategic Metals Ltd. shareholders and regulatory acceptance, including the acceptance for filing by the TSX Venture Exchange and the Supreme Court of British Columbia, is expected to be implemented through a plan of arrangement under the Business Corporations Act (British Columbia). Subject to the final approval of the Board of Strategic in the fixing of the date for the special meeting of its shareholders . The transaction cannot close until the required shareholder approval is obtained, and there can be no assurance that the transaction will be completed as proposed or at all.
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. Metals Creek has also recently made a new gold/silver discovery in the "White Gold District" on the Squid East project in the Yukon and is also 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."