Quartz Mountain Purchases Second BC Mineral Property

Rhea-AI Summary

Quartz Mountain Resources Ltd. has entered a purchase agreement to acquire the Jake Property in British Columbia, targeting copper-gold potential. The deal involves a payment of $200,000 to United Mineral Services Ltd. in four equal tranches over 18 months, pending TSX Venture Exchange approval. The acquisition includes a 100% interest in four mineral claims and an option for an additional five claims. Funding for exploration will be sought. The company also plans to complete 43-101 Technical Reports for both Jake and the earlier purchased Maestro Property.

Positive

• Acquisition of Jake Property with copper-gold potential.
• Strategic positioning with additional mineral claims under option.
• Completion of 43-101 Technical Reports expected in January 2022.

Negative

• Acquisition financed through payments to a related party, raising conflict of interest concerns.
• Exploration funding still required, introducing financial uncertainty.

VANCOUVER, BC / ACCESSWIRE / December 8, 2021 / Quartz Mountain Resources Ltd. ("Quartz Mountain" or the "Company") (TSXV:QZM)(OTC PINK:QZMRF) announces that it has entered into a mineral claims purchase agreement to acquire the Jake Property located approximately 160km northeast of Smithers, British Columbia from United Mineral Services Ltd. ("UMS"). The Jake Property is being targeted for its copper-gold porphyry potential. UMS is a private company owned by Robert Dickinson, the controlling shareholder of the Company and a non-arms-length vendor. Quartz Mountain has agreed to pay UMS out-of-pocket costs to assemble the property totaling $200,000, which is payable in four equal tranches over 18 months from the date of TSX Venture Exchange approval of the transaction.

The purchase from UMS is comprised of a 100% undivided interest in four mineral claims it staked as well as the transfer of a valid option to acquire an undivided 100% interest in five adjacent mineral claims (the "Underlying Claims") from Electrum Resource Corporation, an arms-length third party. The Electrum option can be exercised with payment of $125,000 to July 2022 or alternatively an equal amount spread over two years with property work commitments of $360,000. The Underlying Claims are subject to a 2% NSR which is capped at $3 million.

Maestro Project
In June 2021 Quartz Mountain announced the purchase of the Maestro Property, located near Houston, British Columbia. The Maestro Property is being targeted for its gold-silver-copper-molybdenum bulk tonnage potential. The Maestro Property was acquired from a third-party vendor for CAD$105,000 in cash and 1,000,000 shares in the capital of the Company.

43-101 Technical Reports
The Company has contracted C.J. Greig and Associates Ltd. to complete 43-101 Technical Reports on each of the Jake and Maestro projects which it expects to receive in January 2022.

Material exploration of these mineral project acquisitions will require a financing which the Company will seek going forward.

The Jake Property acquisition is subject to TSX Venture Exchange approval.

On behalf of the Board of Directors
Leonie Tomlinson
Director

For further details, contact Investor Services at:
T: (604) 684-6365 or within North America at 1-800-667-2114.
E: info@quartzmountainresources.com
W: www.quartzmountainresources.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.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts are forward-looking statements. These statements include expectations about the likelihood of completing the private placement and share consolidation and the ability of the Company to secure regulatory acceptance for the private placement and share consolidation. Though the Company believes the expectations expressed in its forward-looking statements are based on reasonable assumptions, such statements are subject to future events and third party discretion such as regulatory personnel. For more information on the Company, and the risks and uncertainties connected with its business, investors should review the Company's home jurisdiction filings as www.sedar.com and its filings with the United StatesSecurities and Exchange Commission.

SOURCE: Quartz Mountain Resources Ltd.

View source version on accesswire.com:
https://www.accesswire.com/676456/Quartz-Mountain-Purchases-Second-BC-Mineral-Property

FAQ

What did Quartz Mountain Resources announce on December 8, 2021?

The company announced the acquisition of the Jake Property, targeting copper-gold porphyry potential.

What is the purchase price for the Jake Property?

The acquisition involves a payment of $200,000 in four equal tranches over 18 months.

How will Quartz Mountain Resources finance exploration for the Jake Property?

The company plans to seek financing for material exploration of the acquired property.

What are the key features of the Underlying Claims associated with the Jake Property?

The Underlying Claims include an option for a 100% interest from Electrum Resource Corporation, with a payment structure of $125,000 due by July 2022.

When can we expect the 43-101 Technical Reports for the properties?

The technical reports for both the Jake and Maestro projects are expected in January 2022.