SCOTTIE RESOURCES REPURCHASES ALL ROYALTIES ON ITS SCOTTIE GOLD MINE PROJECT

Rhea-AI Summary

Scottie Resources Corp. (OTCQB: SCTSF) announces an agreement to acquire all outstanding royalties on its wholly owned Scottie Gold Mine Project, enhancing asset valuation. The company is set to pay $1.6 million for a 3% net smelter return royalty on the Scottie Gold Mine and will issue 2.5 million shares at $0.19 for a 1.8% gross smelter return royalty on the Summit Lake property. Additionally, Scottie has expanded its Georgia Project with 6,700 hectares of staking, totaling over 16,000 hectares, targeting high-grade mineral occurrences.

Positive

• Acquisition of royalties increases asset valuation.
• Strategic expansion of the Georgia Project adds significant mineral potential.
• The buyback of royalties is executed at attractive valuations, enhancing future optionality.

Negative

• The issuance of 2.5 million shares could cause shareholder dilution.

VANCOUVER, BC, Nov. 3, 2022 /PRNewswire/ - Scottie Resources Corp. ("Scottie" or the "Company") (TSXV: SCOT) (OTCQB: SCTSF) (FSE: SR8) is pleased to report that it has entered into an agreement to acquire all outstanding royalties on its 100% owned Scottie Gold Mine Project, which includes both the Blueberry Zone and the high-grade, past-producing Scottie Gold Mine. The Company has also completed additional staking of open ground adjacent to its Georgia Project.

President and CEO, Brad Rourke: "Challenging market conditions in 2022 allowed Scottie Gold to negotiate with the existing royalty holders to buy back royalties on the claims within the Scottie Gold Mine Project at attractive valuations. Unencumbering the Blueberry Zone and Scottie Gold Mine increases the inherent valuation of the assets and provides optionality as we continue to advance this exciting project."

Summit Lake Claims (Option and Royalty)

Scottie has entered into a royalty purchase agreement pursuant to which Scottie will purchase 100% of a 1.8% gross smelter return royalty (the "Summit Lake Royalty") on the Summit Lake property, located in British Columbia. In consideration of the purchase of the Summit Lake Royalty, Scottie will issue 2,500,000 common shares to the vendor at a deemed price of $0.19 per share (the "Royalty Acquisition"). 

Scottie originally entered into an option agreement on the Summit Lake property in April 2019 (see news release dated April 30, 2019) and completed the 100% acquisition of the Summit Lake property from the vendor in October 2022. The Summit Lake property hosts the Domino Zone, located ~2 km due west of the Scottie Gold Mine, and the Domino Zone exhibits similar mineralization style, grade, and orientation to the past-producing mine.

The Royalty Acquisition is subject to approval of the TSX Venture Exchange.

Scottie Gold Mine (Royalty)

Scottie recently entered into a royalty purchase agreement pursuant to which Scottie purchased 100% of the 3% net smelter return royalty (the "Scottie Royalty") attached to the Scottie Gold Mine in the Skeena Mining Division of British Columbia. The Scottie Royalty was in and to certain located and crown granted mineral claims comprising the Scottie Gold Mine and the Blueberry Zone. In consideration of the purchase of the Scottie Royalty, Scottie paid $1.6 million to the vendor.

Georgia Project Staking

Scottie recently completed staking around its Georgia Project, which hosts the high-grade past producing Georgia River Mine. Additional staking of 6,700 hectares expanded the claims to encompass additional known mineral occurrences, as well as connecting the existing claims into a single contiguous package. The new claims host lower to upper Hazelton volcanic and sedimentary units interpreted to be in the same geologic setting as Dolly Varden and Anyox VMS deposits. Both stratiform mineralization and high-grade gold veins have been discovered within the newly acquired claims.

The high-grade gold Geogia Project now covers more than 16,000 hectares centered on the past-producing Georgia River Mine, located on tidewater 16 kilometres south of the town of Stewart, BC, in the prolific Golden Triangle. The Georgia River Mine, which last operated in 1939 with a head grade of 22.6 g/t gold, contains 1.2 kilometres of underground access on three levels.

Thomas Mumford, Ph.D., P.Geo and VP Exploration of Scottie, a qualified person under National Instrument 43-101, has reviewed the technical information contained in this news release on behalf of the Company.

ABOUT SCOTTIE RESOURCES CORP.

Scottie owns a 100% interest in the Scottie Gold Mine Property which includes the Blueberry Zone and the high-grade, past-producing Scottie Gold Mine. Scottie also owns 100% interest in the Georgia Project which contains the high-grade past-producing Georgia River Mine, as well as the Cambria Project properties and the Sulu property. Altogether Scottie Resources holds more than 59,000 ha of mineral claims in the Stewart Mining Camp in the Golden Triangle.

The Company's focus is on expanding the known mineralization around the past-producing mines while advancing near mine high-grade gold targets, with the purpose of delivering a potential resource. The Company's focus is on expanding the known mineralization around the past-producing mine while advancing near mine high-grade gold targets, with the purpose of delivering a potential resource.

All of the Company's properties are located in the area known as the Golden Triangle of British Columbia which is among the world's most prolific mineralized districts.

Forward Looking Statements

This news release may contain forward‐looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company 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 may differ materially from those in forward looking statements. Forward‐looking statements are based on the beliefs, estimates and opinions of the Company's management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward‐looking statements whether as a result of new information, future events or otherwise.

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

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SOURCE Scottie Resources Corp.

FAQ

What is the significance of Scottie Resources acquiring royalties on the Scottie Gold Mine Project?

The acquisition of these royalties enhances the asset valuation and provides more flexibility for future development of the Scottie Gold Mine Project.

What are the financial details surrounding the acquisition of the Scottie Royalty?

Scottie Resources paid $1.6 million for the 3% net smelter return royalty on the Scottie Gold Mine.

How many common shares will be issued for the Summit Lake Royalty?

Scottie will issue 2.5 million common shares at a deemed price of $0.19 per share for the 1.8% gross smelter return royalty on the Summit Lake property.

What does the staking around the Georgia Project signify for Scottie Resources?

The staking expands the Georgia Project to over 16,000 hectares, potentially increasing the company's mineral resources and exploration opportunities.

When was the Summit Lake property acquired by Scottie Resources?

Scottie Resources completed the 100% acquisition of the Summit Lake property in October 2022.