Sorrento Resources to Sell Three Newfoundland Properties to Gold Hunter

Rhea-AI Summary

Sorrento Resources announced an agreement with Gold Hunter Resources to sell 143 mineral claims in Newfoundland, including the Jackson Arm, Silver Mountain, and Taylor's Pond properties.

The deal involves a cash payment of $60,000 and 1,000,000 Gold Hunter common shares.

Completion of the sale is expected in the coming weeks, pending necessary approvals and closing conditions. The properties carry a 2% net smelter returns royalty held by Fair Haven Resources and a 1% NSR held by Gold Hunter, which will be terminated upon closing.

Sorrento Resources focuses on the exploration and development of mineral properties in Canada.

Positive

• Sorrento Resources will receive $60,000 in cash.
• The company will acquire 1,000,000 Gold Hunter common shares.
• No finder’s fees are payable, reducing transaction costs.
• The sale is expected to complete soon, adding liquidity and potential share value.

Negative

• The properties sold are subject to a 2% net smelter returns royalty held by Fair Haven Resources.
• Potentially valuable mineral claims are being divested, possibly limiting future upside from these assets.

Vancouver, British Columbia--(Newsfile Corp. - May 29, 2024) - SORRENTO RESOURCES LTD. (CSE: SRS) (OCTQB: SRSLF) (the "Company") is pleased to announce that it has entered into a purchase agreement dated May 29, 2024 (the "Agreement") with Gold Hunter Resources Inc. (CSE: HUNT) ("Gold Hunter") for the sale of certain mineral claims around Gold Hunter's newly optioned MT property.

Pursuant to the Agreement, Gold Hunter agreed to acquire 143 mineral claims located in Newfoundland, comprising the Jackson Arm, Silver Mountain and Taylor's Pond properties (the "Properties"), in exchange for a cash payment of $60,000 and the issuance of 1,000,000 common shares in the capital of Gold Hunter.

The Company expects to complete the sale in the coming weeks, following receipt of all necessary consents and approvals, including the approval of the CSE, and the satisfaction of customary closing conditions.

No finder's fees are payable in connection with the sale.

The Properties are subject to a 2% net smelter returns royalty held by Fair Haven Resources Inc, as well as a 1% net smelter returns royalty held by Gold Hunter (the "Gold Hunter NSR"). The Gold Hunter NSR is expected to be terminated on closing of the sale.

About the Company

Sorrento Resources is engaged in acquisition, exploration, and development of mineral property assets in Canada. The Company's objective is to locate and develop economic precious and base metal properties of merit in including the Wing Pond, Tom Joe, Silver Mountain, Jacksons Arm, and Taylor's Pond gold projects, the PEG lithium project, and the Harmsworth (VMS) project all located in Newfoundland.

For more information, visit https://sorrentoresources.ca/.

ON BEHALF OF THE BOARD OF DIRECTORS

Brayden Sutton
President and Chief Executive Officer
investors@sorrentoresources.ca
604-290-6152

Disclaimer for Forward-Looking Information

This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, including statements regarding the anticipated results of the prospecting program at the Peg Property are "forward-looking statements." Forward-looking statements in this news release include, but are not limited to, statements with respect to the Property and its mineralization potential, the Company's objectives, goals or future plans with respect to the Property and the timing of results. These forward-looking statements reflect the expectations or beliefs of the management of the Company based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, which may cause actual outcomes to differ materially from those discussed in the forward-looking statements. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The Canadian Securities Exchange (CSE) does not accept responsibility for the adequacy or accuracy of this release.

THE CANADIAN SECURITIES EXCHANGE HAS NOT APPROVED NOR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/210929

FAQ

What properties is Sorrento Resources selling to Gold Hunter?

Sorrento Resources is selling the Jackson Arm, Silver Mountain, and Taylor's Pond properties.

How much will Sorrento Resources receive from the sale to Gold Hunter?

Sorrento Resources will receive $60,000 in cash and 1,000,000 common shares of Gold Hunter.

When is the sale of Sorrento Resources properties to Gold Hunter expected to be completed?

The sale is expected to be completed in the coming weeks, pending necessary consents and approvals.

What is the net smelter returns royalty on the properties sold by Sorrento Resources?

The properties are subject to a 2% net smelter returns royalty held by Fair Haven Resources and a 1% NSR held by Gold Hunter, which will be terminated upon closing.

What is the stock symbol for Sorrento Resources?

The stock symbol for Sorrento Resources is SRSLF.