Equity Metals to Acquire 100% of the Arlington Gold Property

Rhea-AI Summary

Equity Metals (TSXV: EQTY) has received TSX Venture Exchange approval for its option agreement with Origen Resources to acquire a 100% interest in the Arlington Property, comprising nine claims totaling 3,583.89 ha in British Columbia's Boundary District.

The company has already paid $80,000 ($30,000 for drill permit bond reimbursement) and issued 944,686 shares valued at $200,000 to Origen. To complete the acquisition, Equity must pay an additional $50,000, issue 2 million shares, and spend $250,000 on exploration within one year. Origen will retain a 2% net smelter returns royalty, with Equity having the option to purchase 1% for $1 million.

Initial work plans include soil sampling, geological mapping, prospecting, and possible trenching, followed by drilling in 2025.

Positive

• Option to acquire 100% interest in 3,583.89 ha of mining claims
• Property comes with existing drill permit
• Structured payment terms spread over one year
• Option to reduce royalty burden by 50% for $1 million

Negative

• Required cash payments total $130,000
• Share issuance of 2.94 million shares causing dilution
• Mandatory $250,000 exploration expenditure within one year
• 2% NSR royalty obligation

News Market Reaction

+10.06%

1 alert

+10.06% News Effect

On the day this news was published, EQMEF gained 10.06%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - December 6, 2024) - Equity Metals Corporation (TSXV: EQTY) ("Equity" or the "Company") reports that it has received TSX Venture Exchange approval of the letter agreement with Origen Resources Inc. ("Origen") dated November 5, 2024 (the "Arlington Agreement") pursuant to which the Company has the option to earn a 100% interest in nine claims, totaling 3,583.89 ha, located within the Boundary District of south-central British Columbia (the "Arlington Property").

Pursuant to the Arlington Agreement, the Company has now paid Origen $80,000 ($30,000 of which is reimbursement of costs associated with the bond posted in regards to the current drill permit to be assigned to Equity) and has issued to Origen 944,686 common shares of Equity valued at $200,000. In order to exercise its option under the Arlington Agreement, the Company must also meet the following obligations within one year: (i) pay Origen $50,000; (ii) issue to Origen 2,000,000 shares; and (iii) incur exploration expenditures of $250,000 on the Arlington Property.

Origen will retain a royalty of 2% of net smelter returns, provided that the Company may purchase 1% of such royalty at any time for the price of $1,000,000.

Initial work on the project by Equity will include detailed soil sampling, geological mapping, prospecting and potentially trenching toward further refinement of the known targets to be followed by initial drilling in 2025.

See the Company's news release dated November 12, 2024 for further details on the Arlington Property and previous work completed on the project.

About Equity Metals Corporation
Equity Metals Corporation is a member of the Malaspina-Manex Group. The Company owns 100% interest, with no underlying royalty, in the Silver Queen project, located along the Skeena Arch in the Omineca Mining Division, British Columbia. The property hosts high-grade, precious- and base-metal veins related to a buried porphyry system, which has been only partially delineated. The Company also has a controlling JV interest (57.49%) in the Monument Diamond project, NWT, strategically located in the Lac De Gras district within 40 km of both the Ekati and Diavik diamond mines. As well, the Company has an option to acquire a 100% interest in the Arlington Property, located within the Boundary District of south-central British Columbia.

Robert Macdonald, MSc. P.Geo, is VP Exploration of Equity Metals Corporation and a Qualified Person as defined by National Instrument 43-101. He is responsible for the supervision of the exploration on the Arlington Property and for the preparation of the technical information in this disclosure.

On behalf of the Board of Directors
"Joseph Anthony Kizis, Jr."

Joseph Anthony Kizis, Jr., P.Geo
President, Director, Equity Metals Corporation

For further information, visit the website at https://www.equitymetalscorporation.com; or contact us at 604.641.2759 or by email at corpdev@mnxltd.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 news release contains forward-looking statements including statements regarding the exercise of the option to acquire a 100% interest in the Arlington Property and future exploration plans and expenditures on the Arlington Project. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward looking statements include the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Equity Metals Corporation does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232722

FAQ

What is the total size of the Arlington Property that Equity Metals (EQMEF) is acquiring?

The Arlington Property consists of nine claims totaling 3,583.89 hectares in the Boundary District of south-central British Columbia.

What are the payment terms for Equity Metals (EQMEF) to acquire the Arlington Property?

Equity Metals must pay $80,000 initially ($30,000 for drill permit bond), issue 944,686 shares valued at $200,000, and within one year pay an additional $50,000, issue 2 million shares, and spend $250,000 on exploration.

What royalty will Origen retain on the Arlington Property after Equity Metals (EQMEF) acquisition?

Origen will retain a 2% net smelter returns royalty, with Equity having the option to purchase 1% of the royalty for $1,000,000.

What exploration work does Equity Metals (EQMEF) plan for the Arlington Property?

Initial work includes detailed soil sampling, geological mapping, prospecting, and potential trenching, followed by drilling planned for 2025.