Metals Creeks Options Yellow Fox Property to Lomiko Metals

Rhea-AI Summary

Metals Creek Resources (TSXV: MEK) has entered into an agreement with Lomiko Metals for the acquisition of the Yellow Fox project in Newfoundland. The property consists of 28 mineral claims covering 7 sq. km, located 10 km southwest of Glenwood.

Under the agreement terms, Lomiko can acquire 100% interest by making cash payments totaling $64,750 and issuing common shares worth $328,375 over two years. Metals Creek will retain a 2% NSR. The deal is expected to close by February 28, 2025.

The Yellow Fox property has shown promising early exploration results, with grab samples yielding up to 59.43g/t Au, 11.10% Sb, 7.00% Zn, 72.90g/t Ag, and 5.50% Pb in arsenopyrite-stibnite veins. Channel results have shown 0.35g/t Au, 3.04g/t Ag, 0.77% Zn, 0.27% Sb, and 0.21% Pb over 16.49m.

Positive

• Agreement provides immediate and future cash payments totaling $64,750
• Company retains 2% NSR on the property
• Deal includes share payments valued at $328,375
• Allows company to focus on flagship Ogden Gold Project and Tillex Copper Project

Negative

• Divestment of potentially valuable mineral property
• Share payments subject to market price fluctuations

Thunder Bay, Ontario--(Newsfile Corp. - January 22, 2025) - Metals Creek Resources Corp. (TSXV: MEK) (FSE: M1C1) (the "Company" or Metals Creek) is pleased to announce that it has entered into an agreement (the "Acquisition Agreement") with Lomiko Metals Inc ("Lomiko"), Whereas Lomiko can acquire a 100% interest in 28 mineral claims forming the Yellow Fox project (the "Property"), subject to customary closing conditions. These claims cover The Yellow Fox Property, which consists of 28 claim units in two licenses for a total of 7 sq. km, consisting of licenses 027536M (4) and 037936M (24). The agreement is subject to TSXV approvals and the closing date is expected to be February 28, 2025.

The Yellow Fox Property is located approximately 10 km southwest of the Town of Glenwood Newfoundland, and south of the Trans-Canada Highway. The Property occurs within NTS map sheets 02D/14 and 15 with excellent access along several logging and skidder roads originating from Glenwood. The main Yellow Fox showing is located in the central part of License 027536M, 5km from the western end of Gander Lake. The property is centered at approximately UTM (NAD 27) grid coordinates are 5,419,400m North and 645,300m East.

Definitive Agreement terms

Lomiko can acquire 100% of Metals Creeks's interest in all mineral rights forming part of the Property in consideration of:

     Terms of Option

(a) The Optionee shall have the right to acquire 100% of the right, title and interest in and to the Option Interests with Metals Creek retaining a 2% NSR by making the following payments:

(b) (i) in cash totaling $64,750, according to the following schedule:

1. on the Closing Date, $18,500;
   
   
2. on or before first anniversary of this Agreement, $23,125;
   
   
3. on or before second anniversary of this Agreement, $23,125; and

(c) (ii) in common shares of the Optionee (the "LMR Shares") totaling $328,375, at a price per LMR Share equal to the Market Price (as such term is defined in the TSX Venture Exchange Corporate Finance Manual) on the date of the signature of this Agreement according to the following schedule:

1. on the Closing Date, $50,875 payable in LMR Shares;
   
   
2. on or before first anniversary of this Agreement, $115,625 payable in LMR Shares; and
   
   
3. on or before second anniversary of this Agreement, $161,875 payable in LMR Shares.

Alexander (Sandy) Stares, President and CEO of Metals Creek states "Making this deal with Lomiko allows Metals Creek to focus on our flagship Ogden Gold Project (50/50 JV with Newmont) and our Tillex Copper Project, where we have completed drilling with great success and awaiting further results and expected to recommence drilling soon. In addition, Metals Creek and its shareholders will remain exposed to Lomiko's success at Yellow Fox with the share holdings and the retained 2% NSR on these claims."

Gordana Slepcev, CEO, President, and director of Lomiko, stated: "We are pleased to add another critical mineral , antimony, to our portfolio with upside potential in silver and gold. We also welcome Metals Creek as a shareholder of Lomiko and look forward to working with Metals Creek in the long term. Yellow Fox is an early-stage exploration property prospective in antimony, gold, and silver where historic works returned samples anomalous in gold (Au), antimony (Sb), lead (Pb), zinc (Zn), and silver (Ag). The trenching exposed the rocks, resulting in grab samples of 59.43g/t Au, 11.10% Sb, 7.00% Zn, 72.90g/t Ag, and 5.50% Pb in arsenopyrite-stibnite veins within altered monzogranite. This property is on the same trend as the past-producing antimony mine Beaver Brook, which is located 25km southwest of the property and on the same trend. If this project is successful in exploration, it can feed antimony into the North American critical minerals supply chain. We are also pleased to be advancing the La Loutre graphite project as planned for bulk sample permitting and evaluating our regional graphite claims for the next steps."

The Lomiko Metals leadership team has vast experience operating in Newfoundland and in developing critical minerals projects, as well as in antimony, silver and gold prospect specifically. Antimony is considered one of 34 critical minerals in Canada and has tremendous potential due to its role in many industrial applications, including in semiconductors and as a flame retardant. It provides an excellent fit to the Company's strategy as a critical minerals developer of choice in Canada for a solution in North America. Antimony prices surged in 2024, up 250% according to Reuters (January 6, 2025) as a result of its increasing importance as a strategic metal: in December 2024, China banned exports of antimony to the USA, having already announced export controls on graphite earlier in the year.

Yellow Creek Property and Historical Works

The Yellow Fox Property is an early exploration project with excellent early results. The work completed on the property to date includes airborne surveys and grab samples.

Results to date: returned samples anomalous in gold (Au), antimony (Sb), lead (Pb), zinc (Zn) and silver (Ag) referred to as the Yellow Fox Showing. Trenching took place for better exposure, resulting in grab samples to 59.43g/t Au, 11.10% Sb, 7.00% Zn, 72.90g/t Ag and 5.50% Pb in arsenopyrite-stibnite veins within altered monzogranite. Channel results of 0.35g/t Au, 3.04g/t Ag, 0.77% Zn, 0.27% Sb and 0.21% Pb over 16.49m have been attained.

Lomiko Metals Inc. (the "Company") has also agreed to pay Star Codes Canda Inc. a finders' fee, subject to regulatory approval, for arranging the entering into a property option agreement with Metals Creek Resources Corp. with respect to the claims known as Yellow Fox comprised of 28 contiguous mining units in 2 licences (027536M - 4 units and 037936M - 24 units).

Subject to regulatory approval, the Company has agreed to issue an aggregate of 204,808 common shares, at a deemed value of $0.13 per share and make aggregate cash payments of $5,250 as follows to Starcodes Canada Inc. as follows;

Cash $5,250 payable as:

$1,500 within two business days following receipt of approval from the TSX-V; $1,875 on or before the first anniversary of the agreement; and $1,875 on or before the second anniversary of the agreement.

204,808 common shares issuable as;31,731 shares within two business days following receipt of TSX-V approval, 72,115 on or before the first anniversary of the agreement and 100,962 common shares on or before the second anniversary of the agreement.

Next steps for Lomiko

Lomiko intends to review existing data and potentially initiate fieldwork in the spring. Soil sampling has been proven to be a good exploration tool in Newfoundland and Labrador to detect gold in bedrock; looking at pathfinders like arsenic is highly recommended. A soil sampling program will take place south of the Yellow Fox gold, showing 59.413 g/t and areas of increased density of interpreted structures. The program outlined would consist of approximately 287 soil samples on seven, 1000m long, 250m spaced lines trending approximately 70o with samples taken every 25m along the line. The work would almost entirely be within license 037936M. Should this soil sampling program be proven effective, expansion of the lines and additional lines to the south are warranted.

Following the field program, the next step would be to define an exploration drill program.

Qualified Person for technical content at Yellow Fox

The technical information in this press release has been prepared and approved by Gordana Slepcev, P.Eng, who is registered in Ontario as a qualified person as defined by NI 43-101 guidelines. QP relied on the information provided by Metals Creek. Metals Creek QP is Wayne Reid, P.Geo. is registered in Newfoundland.

About Antimony

Antimony is used to increase the hardness of alloys, with lead alloys for batteries and lead/copper/tin alloys for machine bearings. It is also used in automotive clutch and brake parts. The other major use is as antimony trioxide, which is used for the production of flame retardant chemicals. Antimony is used in the semiconductor industry and in defence, for certain silicone wafers, diodes, and infrared detector productions. Small amounts of antimony are used in the production of safety matches.

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 from Newmont Corporation, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario and has an 8 km strike length of the prolific Porcupine-Destor Fault (P-DF).

Metals Creek also has multiple quality projects available for option which can be viewed on the Company's website. Parties interested in seeking more information about properties available for option can contact the Company at the number below.

Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under its profile at www.sedarplus.ca.

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.

Alexander (Sandy) Stares, President and CEO
Metals Creek Resources Corp
709-424-1141
MetalsCreek.com
Twitter.com/MetalsCreekRes
Facebook.com/MetalsCreek

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238065

FAQ

What are the terms of Lomiko's acquisition of Yellow Fox from Metals Creek (MCREF)?

Lomiko can acquire 100% interest by paying $64,750 in cash and $328,375 in shares over two years, with Metals Creek retaining a 2% NSR.

What are the significant mineral grades reported at the Yellow Fox property?

Grab samples showed up to 59.43g/t Au, 11.10% Sb, 7.00% Zn, 72.90g/t Ag, and 5.50% Pb, with channel results of 0.35g/t Au, 3.04g/t Ag, 0.77% Zn, 0.27% Sb and 0.21% Pb over 16.49m.

When is the expected closing date for the Yellow Fox property acquisition?

The closing date is expected to be February 28, 2025, subject to TSXV approvals.

What is the size and location of the Yellow Fox property?

The Yellow Fox property consists of 28 claim units covering 7 sq. km, located approximately 10 km southwest of Glenwood, Newfoundland.