Metals Creek Sells Shabaqua Corners Gold Project to Delta

Rhea-AI Summary

Metals Creek Resources has entered into an agreement with Delta Resources to sell its Shabaqua Corners Gold Project. Delta will acquire 100% interest in eleven claims and the right to earn 100% interest in eight additional claims from Gold Cache Inc. The combined claims cover 233 hectares and are contiguous with the Delta-1 Property. The claims host several gold occurrences, including the Echo Zone and Gold Cache Main Zone, with surface samples ranging from 4.16 g/t Au to 50.1 g/t Au.

Under the agreement, Delta will pay $55,000 and issue 1,250,000 common shares to Metals Creek. Metals Creek will retain a 1% NSR with Delta having buyback options. The deal allows Metals Creek to focus on its Ogden Gold and Tillex Copper projects while maintaining exposure to Delta's success.

Positive

• Immediate cash payment of $55,000
• Receipt of 1,250,000 Delta Resources shares
• Retention of 1% NSR royalty with potential buyback value of up to $1M
• No further exploration costs while maintaining project exposure

Negative

• Divestment of potentially valuable gold property
• Delayed share vesting schedule of 312,500 shares every 4 months

Thunder Bay, Ontario--(Newsfile Corp. - October 29, 2024) - Metals Creek Resources Corp. (TSXV: MEK) (FSE: M1C1) (the "Company" or Metals Creek) is pleased to announce that it has entered into an agreement with Delta Resources Limited. (Delta) (TSXV: DLTA) (OTC Pink: DTARF) (FSE: 6G01) whereas Delta will acquire a 100% interest in the eleven (11) claims from Metals Creek Resources Corp ("MEK") and the right to earn a 100% interest in an additional eight (8) claims held by Gold Cache Inc. ("GC") by assuming an underlying agreement between MEK and GC.

The combined claims cover approximate 233 hectares and are all contiguous with the newly expanded Delta-1 Property (see map below). The claims are located in Horne and Dawson Road Lots Township.

The claims located west of the Eureka Gold Deposit host a number of gold occurrences including the Echo Zone (1.04 g/t Au over 18.7m surface channel sample and 0.45 g/t Au over 21 m in drill hole), the Gold Cache Main Zone (29.4 g/t Au over 0.6m surface channel sample) and other surface grab samples ranging from 4.16 g/t Au to 50.1 g/t Au.

Figure 1: Map of the eastern portion of the Delta-1 Expanded Property, showing the location of the newly acquired claims.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/943/228131_944e9fcaa4845a3c_002full.jpg

Alexander (Sandy) Stares, President and CEO of Metals Creek states "Making this deal with Delta 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 additional results. In addition, Metals Creek and its shareholders will remain exposed to Delta's success with the share holding and the NSR on these claims. We believe that Delta is best positioned with their commanding land package to advance this exciting portion of the Shabandowan greenstone belt and we are very pleased to be a shareholder of Delta into the future."

"Delta deployed an aggressive strategy over the past year to control the eastern Shebandowan Greenstone Belt. With each addition to its property package, Delta is getting closer to its goal of controlling this highly prospective gold endowed belt where we believe that multiple significant gold deposits are yet to be uncovered. Having already made a significant discovery at the Eureka Gold deposit which remains open on strike and to depth, the Delta technical team is as keen on expanding the mineralized envelope at Eureka while it now sets its sights on furthering the potential of multiple gold deposits within this commanding land package. It's also noteworthy that Delta has no work commitments on the complete property package, allowing the team to focus where the data is pointing to areas of best potential. A potential that we're just starting to uncover." said André Tessier, President and CEO.

Under the terms of the agreement, Delta will pay to Metals Creek, $55,000 and issue 1,250,000 common shares of Delta upon TSX approval of the agreement. The shares issued will vest at a rate of 312,500 every 4 months after issuance.

Metals Creek will also issue 425,000 MEK shares to GC and Delta will also have to pay $40,000 to GC in two equal instalments on March 14, 2025 and March 14, 2026.

Metals Creek will retain a 1% Net Smelter Return Royalty ("NSR") on the claims. Delta will have the option to buyback a 50% of that NSR at anytime for $500,000 and will have a right of first refusal on the second 50% NSR, to a maximum of $500,000. The claims are all subject to a 2% NSR related to underlying agreements and Delta will have the right to purchase 1% at anytime for $1M.

There are no work commitments on the properties. The agreement is subject to regulatory approval.

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). In addition, Metals Creek owns and/or has option agreements in place to acquire a 100% interest in claims in the Shabaqua Corners area of North western Ontario.

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
709-424-1141
Metals Creek Resources Corp
MetalsCreek.com
Twitter.com/MetalsCreekRes
Facebook.com/MetalsCreek

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228131

FAQ

What are the terms of Metals Creek's (MCREF) sale of Shabaqua Corners Gold Project to Delta?

Delta will pay $55,000 and issue 1,250,000 common shares to Metals Creek. Metals Creek retains a 1% NSR royalty, with Delta having the option to buy back 50% for $500,000.

How many claims are included in the Metals Creek (MCREF) Shabaqua Corners sale?

The sale includes eleven direct claims and the right to earn 100% interest in eight additional claims from Gold Cache Inc., totaling 233 hectares.

What gold grades were found at the Shabaqua Corners property sold by Metals Creek (MCREF)?

The property showed gold grades including 1.04 g/t Au over 18.7m in surface channel samples, and grab samples ranging from 4.16 g/t Au to 50.1 g/t Au.