Argyle Announces Acquisition of Saint Gabriel Silica Project

Rhea-AI Summary

Argyle Resources Corp. (ARLYF) has completed the acquisition of the Saint Gabriel Silica project in Quebec's Bas Saint-Laurent region. The project comprises 23 contiguous mineral claims covering 1,312.90 ha. The acquisition terms include a $65,000 cash payment and 300,000 common shares to Steadright Critical Minerals Inc., with shares subject to escrow restrictions releasing in three equal tranches over 12 months.

The claims are subject to a 2% net smelter returns royalty, with an option to repurchase half for $1,500,000. The company's planned Phase 1 exploration program will focus on identifying high-purity silica zones through field-based XRF analysis, systematic sampling, laboratory verification, and a 150kg bulk sampling program targeting two high-purity zones.

Positive

• Strategic acquisition of 1,312.90 ha silica project in established mining region
• Structured payment terms with majority in shares, preserving cash position
• Option to reduce royalty burden by 50% through buyback provision
• Clear exploration plan with Phase 1 program already defined

Negative

• Cash outlay of $65,000 required for acquisition
• 2% NSR royalty obligation on future production
• Share dilution through issuance of 300,000 new shares
• Significant investment ($1.5M) required for partial royalty buyback

News Market Reaction

-1.40%

1 alert

-1.40% News Effect

On the day this news was published, ARLYF declined 1.40%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Calgary, Alberta--(Newsfile Corp. - February 4, 2025) - Argyle Resources Corp. (CSE: ARGL) (OTCQB: ARLYF) (FSE: ME0) ("Argyle" or the "Company") is pleased to announce that it has completed the acquisition ("Acquisition") of the Saint Gabriel Silica project, which consists of 23 contiguous mineral claims (the "Claims") totalling 1,312.90 ha. located in the Bas Saint-Laurent region, Quebec, from Steadright Critical Minerals Inc. ("Steadright"), in exchange for $65,000 in cash and 300,000 common shares of the Company (the "Consideration Shares"). The Consideration Shares are subject to escrow restrictions under which 100,000 of the Consideration Shares will be released 4 months and 1 day following closing of the Acquisition ("Closing"), 100,000 Consideration Shares will be released 6 months following Closing, and the remaining 100,000 Consideration Shares will be released 12 months following Closing. The Company notes that the Claims are subject to a 2% net smelter returns royalty (the "Royalty"), one-half of which may be re-purchased by payment of $1,500,000.

Jeff Stevens, CEO of Argyle stated, "We are thrilled to announce the successful acquisition of the Saint Gabriel Silica Project in Bas-Saint-Laurent Region of Quebec. The region has a long history of promising geological exploration dating back to the 1960s, when the Quebec Ministry of Mines first mapped the area's quartzite formations.". Mr. Stevens continued, "As we move into 2025, our planned Phase 1 exploration program at Saint Gabriel will focus on identifying potential high-purity silica zones to assess future development potential. This will include field-based XRF analysis to assess silica purity in real time, systematic sampling across the entire property with corresponding GPS coordinates and XRF data, laboratory verification of silica purity, and a 150kg bulk sampling program targeting two high-purity zones identified through chip sampling and XRF results. The Saint Gabriel Silica Project represents an exciting opportunity for Argyle Resources Corp., and we look forward to advancing exploration and delivering value to our shareholders."

About the Saint Gabriel Silica Project

Figure 1: Properly Location Map of Saint Gabriel Silica Project

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10451/239527_201afdc9d4ef28f4_001full.jpg

Exploration History - Summary of Activities 1960-2023

• 1960s: Initial geological mapping by Quebec Ministry of Mines
• 1980s-1990s: Sampling and drilling programs
• 2023: Sampling by Noront Group; samples sent to ALS Laboratory in Mississauga

1991 Drill Program

The map below depicts the location of prior drilling activities in respect of the Saint Gabriel project, carried out in 1991 by Andre Liboiron.

Figure 2: 1991 Drill Hole Location Map at Saint Gabriel Silica Project

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10451/239527_201afdc9d4ef28f4_002full.jpg

Jim McCrea P.GEO., a consultant to the Company and a Qualified Person, as such term is defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information reported in this news release.

About Argyle Resources Corp.

Argyle Resources Corp. is a junior mineral exploration company engaged in the business of acquiring, exploring, staking and evaluating natural resource properties in North America. In addition to the Saint Gabriel project, the Company currently holds an option to acquire up to 100% of the Frenchvale Graphite Property located in Nova Scotia, Canada and owns 100% interest in the Pilgrim Islands, Matapedia and Lac Comporté quartzite silica projects in Quebec, Canada. Argyle is engaged in a research partnership with the National Institute of Scientific Research (INRS), a high-level research and training institute funded by the Québec government to conduct exploration programs on the Company's silica projects. The Company was incorporated in 2023 and its head office is located in Calgary, Alberta, Canada.

ON BEHALF OF THE BOARD OF DIRECTORS

'Jeffrey Stevens'
President & CEO

For all other inquiries:
Email: info@argylresourcescorp.com
Phone: (825) 724-0033
Website: www.argyleresourcescorp.com

Forward-Looking Statements

All statements included in this press release that address activities, events or developments that Argyle expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements may involve, but are not limited to, statements with respect to the exploration and development of the Company's mineral properties. These forward-looking statements involve numerous assumptions made by Argyle based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond Argyle's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, Argyle does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

Neither the Canadian Securities Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239527

FAQ

What are the terms of Argyle Resources' (ARLYF) Saint Gabriel Silica project acquisition?

Argyle Resources acquired the Saint Gabriel Silica project for $65,000 in cash and 300,000 common shares, with shares released in three equal tranches over 12 months. The project includes a 2% NSR royalty.

How large is the Saint Gabriel Silica project acquired by ARLYF?

The Saint Gabriel Silica project consists of 23 contiguous mineral claims totaling 1,312.90 hectares in Quebec's Bas Saint-Laurent region.

What is ARLYF's planned exploration program for the Saint Gabriel Silica project?

ARLYF plans a Phase 1 exploration program including field-based XRF analysis, systematic sampling, laboratory verification of silica purity, and a 150kg bulk sampling program targeting two high-purity zones.

What are the royalty terms for ARLYF's Saint Gabriel Silica project?

The project carries a 2% net smelter returns royalty, with an option for Argyle to repurchase half (1%) for $1,500,000.