Aben Resources Options Hit Property, Yukon Territory

Rhea-AI Summary

Aben Resources Ltd. has entered into an option agreement with Rackla Metals Inc. for the sale of its Hit Property in the Yukon Territory, comprising 24 mineral claims. Under the terms, Rackla can acquire a 100% interest in the Property by making immediate and future cash payments totaling CAD$50,000, issuing 250,000 common shares, and spending CAD$100,000 on qualified expenditures within 12 months. Aben will retain a 0.5% net smelter returns royalty on the Property, while Rackla will assume an existing 2.0% royalty obligation to Sandstorm Gold Ltd.

Positive

• Aben Resources retains a 0.5% net smelter returns royalty on the Hit Property.
• The agreement allows Aben to receive CAD$50,000 cash and 250,000 common shares in Rackla, with potential for further financial benefits.

Negative

• None.

Vancouver, BC, Oct. 04, 2022 (GLOBE NEWSWIRE) -- Aben Resources Ltd. (TSX-V: ABN) (OTCQB: ABNAF) (Frankfurt: E2L2) (“Aben” or “the Company”) is pleased to announce that the Company has entered into an option agreement (the “Agreement”) with Rackla Metals Inc. (“Rackla”) whereby the Company has granted Rackla the option to acquire a 100% interest in the Hit Property, which consists of 24 mineral claims, located in the Yukon Territory, Canada (the “Property”).

Under the terms of the Agreement, Rackla may acquire a 100% interest in the Property by completing the following:

(a) paying CAD$25,000 cash to the Company within three (3) business days following the closing date; and

(b) within twelve (12) months following the closing date:

(i)  paying CAD$25,000 cash to the Company,

(ii)  issuing 250,000 common shares in the capital of Rackla to the Company, and

(iii)  incurring a total of CAD$100,000 in Qualified Expenditures on the Property.

The Company shall retain a NSR of one-half percent (0.5%) on the Property. Rackla will assume the Company’s obligation to pay a 2.0% net smelter returns royalty (the “Existing Royalty”) to Sandstorm Gold Ltd. pursuant to the Net Smelter Returns Royalty Agreement between Aben and Sandstorm Gold Ltd. dated October 17, 2019.

About Aben Resources:

Aben Resources is a well-funded Canadian gold and graphite exploration company with exploration projects in British Columbia, Ontario, and the Yukon Territory.

For further information on Aben Resources Ltd. (TSX-V: ABN), visit our Company’s web site at www.abenresources.com.

ABEN RESOURCES LTD.

“Jim Pettit”
______________________
JAMES G. PETTIT
President & CEO

For further information contact:
Riley Trimble, Corporate Communications
Aben Resources Ltd.
Telephone: 604-416-2978
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@abenresources.com

Neither 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.

This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management 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 or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information

FAQ

What is the recent agreement between Aben Resources and Rackla Metals?

Aben Resources has entered into an option agreement with Rackla Metals to sell its Hit Property, allowing Rackla to acquire a 100% interest in exchange for cash payments and shares.

What are the financial terms for Rackla to acquire the Hit Property from Aben Resources?

Rackla must pay a total of CAD$50,000, issue 250,000 shares, and incur CAD$100,000 in qualified expenditures within a year to complete the acquisition.

What net smelter returns royalty will Aben Resources maintain on the Hit Property?

Aben Resources will retain a 0.5% net smelter returns royalty on the Hit Property.

What existing royalty obligation will Rackla assume as part of the agreement?

Rackla will assume Aben's obligation to pay a 2.0% net smelter returns royalty to Sandstorm Gold Ltd.