Bitterroot Resources Options Additional 80 Acres at the LM Nickel-Copper-PGM Project in Michigan

Rhea-AI Summary

Bitterroot Resources Ltd. has entered a minerals lease and purchase option with a privately-held corporation for 80 acres at the LM Project in Michigan's Upper Peninsula. This area hosts magnetic targets and is adjacent to ongoing drilling for nickel-copper sulphides. The agreement involves a total payment of US$15,000 and issuance of 300,000 common shares over three years. Additionally, the lease allows for escalating rental payments and the option to purchase mineral rights at specified prices. The exploration is funded by Bitterroot (51%) and Below Exploration Inc. (49%).

Positive

• Acquisition of 80 acres at LM Project enhances exploration potential.
• Partnership with Below Exploration Inc. supports funding and expertise.
• Strategic option to purchase mineral rights could provide significant asset control.

Negative

• Initial cash outlay of US$15,000 may strain liquidity.
• Potential dilution of shares due to issuance of 300,000 common shares.

VANCOUVER, BC / ACCESSWIRE / February 23, 2021 / Bitterroot Resources Ltd.'s (TSXV:BTT)(OTC PINK:BITTF) Michigan subsidiary ("Bitterroot") has entered into a minerals lease and purchase option with a privately-held corporation ("MPC") covering 80 acres of mineral rights at the LM Project in the Upper Peninsula of Michigan. The MPC mineral rights host magnetic targets adjacent to the area of the LM Project currently being drilled for magmatic nickel-copper sulphides.

Following receipt of acceptance by the TSX Venture Exchange, Bitterroot will pay US$15,000 and issue 100,000 common shares to MPC. On the first anniversary, Bitterroot will pay US$15,000 and issue an additional 100,000 shares. On the second anniversary, Bitterroot will issue a final tranche of 100,000 shares and pay US$16,000. Subsequent rental payments will escalate by US$20/acre/year. Bitterroot will also retain the exclusive right and option to purchase the mineral rights for US$1,000/acre for the first five years of the agreement, US$2,500/acre in years 6 through 10, then escalating US$2,500/acre for each subsequent five years for the first 20 years, and remaining unchanged at US$10,000/acre thereafter. MPC will also retain a 2% NSR royalty on underground mining and a 3% NSR on open pit mining. Bitterroot can reduce both royalties to 1% NSRs through payment of US$1,000,000 per 1%.

Exploration of the LM Project is being funded by Bitterroot Resources Ltd. (51%) and privately-owned joint venture partner Below Exploration Inc. (49%). Bitterroot and Below plan to drill-test the MPC lands in mid-2021, following completion of surface use agreements and spring breakup.

Bitterroot and Below are currently drilling the fourth hole of the 2021 winter drill program at the LM Property, which is planned to comprise up to 2,400 meters of core drilling in 6 to 8 holes, before March 15, 2021.

Mr. Glenn W. Scott, CPG, is the Qualified Person responsible for the technical content of this release.

ON BEHALF OF THE BOARD OF DIRECTORS
Michael S. Carr
Director

Contact:
Suite 206-B, 1571 Bellevue Avenue,
West Vancouver, BC, V7V 1A6
(604) 922-1351
www.bitterrootresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENTS: Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects" or "it is expected", or variations of such words and phrases or statements that certain actions, events or results "will" occur. This document contains statements about expected or anticipated future events and/or financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, regulatory processes and actions, technical issues, new legislation, competitive conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and the company's ability to execute and implement its future plans. Actual events may differ materially from those projected in the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, except as may be required by applicable securities laws. For such forward-looking statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.

SOURCE: Bitterroot Resources Ltd.

View source version on accesswire.com:
https://www.accesswire.com/631407/Bitterroot-Resources-Options-Additional-80-Acres-at-the-LM-Nickel-Copper-PGM-Project-in-Michigan

FAQ

What mineral rights did Bitterroot Resources acquire at the LM Project?

Bitterroot Resources acquired 80 acres of mineral rights adjacent to the LM Project.

What are the financial commitments under the lease agreement for BITTF?

Bitterroot will pay US$15,000 initially, issue 100,000 shares annually for three years, and make escalating rental payments.

When is drilling planned for the MPC lands?

Drilling on the MPC lands is planned for mid-2021, after completing surface use agreements.

Who are Bitterroot's partners in the LM Project exploration?

Bitterroot is partnered with Below Exploration Inc., holding a 49% interest in the project.

What is the significance of the NSR royalties in the acquisition?

MPC retains a 2% NSR royalty on underground mining and a 3% NSR on open pit mining, which can be reduced to 1% for a fee.