West Mining Corp. Enters Option Agreement for Mineral Claims Located in Northern British Columbia

Rhea-AI Summary

West Mining Corp. has entered into an option agreement with ESN Investment Corp. to acquire a 100% interest in two mineral claims in Northern British Columbia. These claims expand West's Spanish Mountain West and Junkers properties. The Spanish Mountain West addition covers 412.93 hectares, increasing the property area by 45%. The Junkers Property addition comprises 1,372.49 hectares, expanding the property by 65%.

To earn the 100% interest, West will issue 7,000,000 common shares to ESN in three tranches over one year. Upon exercising the option, West will grant ESN a 1.0% net royalty interest on the Claims, with a buyback option. West has begun exploration of both properties, starting with multispectral satellite image analysis.

Additionally, West has agreed to settle $24,000 of debt by issuing 126,315 common shares at $0.19 per share.

Positive

• Expansion of Spanish Mountain West property by 45% and Junkers property by 65%
• Option to acquire 100% interest in two mineral claims
• Commencement of exploration activities on both properties
• Debt settlement through share issuance, potentially improving financial position

Negative

• Dilution of existing shareholders due to issuance of 7,000,000 new shares for the option agreement
• Additional 126,315 shares to be issued for debt settlement, further diluting shareholders
• 1.0% net royalty interest to be granted to ESN upon exercising the option

VANCOUVER, BC / ACCESSWIRE / October 15, 2024 / West Mining Corp. ("West" or the "Company") (CSE:WEST)(OTC PINK:WESMF)(FRA:1HL) is pleased to announce that it has entered into an option agreement (the "Option Agreement") dated as of October 15, 2024 with ESN Investment Corp. ("ESN" or the "Optionor") pursuant to which West has the option to earn a 100% interest in two mineral claims (the "Claims") located in Northern British Columbia which augment West's Spanish Mountain West and Junkers properties.

The Spanish Mountain West land addition is a mineral claim located in the central Quesnel Belt, approximately 70 kilometres northeast of Williams Lake. The new claim covers 412.93 hectares adjacent to the north and west of West's Spanish Mountain West Property, as well as adjacent to Spanish Mountain Gold Ltd.'s property. This new mineral claim extends to the eastern shore of Quesnel Lake and represents an increase of 45% in area to the adjacent claims of West's Spanish Mountain West Property. West's new Spanish Mountain claim occurs within the same prospective Cretaceous sedimentary strata that host the polymetallic copper, lead, gold, silver, and zinc showing at Cedar Creek, in contact with Triassic basalts 1 to 2 km north and east (MINFILE #093A 072).

The Junkers Property land addition comprises another mineral claim, this one located 200 kilometres southeast of Dease Lake in north central B.C. This new claim covers 1,372.49 hectares adjacent to the south of West's gold-copper Junkers Property, adding 65% in area to the property. The Junkers Property gold-copper exploration target occurs within Lower to Middle Jurassic marine sedimentary and volcanic rocks of the Hazelton Group (Junkers showing, B.C. MINFILE #094E 299). The new claim at Junkers starts only 150 m south of the Junkers gold-copper mineral showing, and extends another 4 kilometres further south, adding significant area to the exploration target.

West has commenced exploration of the Junkers and Spanish Mountain properties, beginning with multispectral satellite image analysis, which is being integrated with existing geophysical and sampling surveys to identify high potential gold, copper and silver targets for follow-up field investigation.

Nader Vatanchi, West Mining's Chief Executive Officer, said "Expanding our Spanish Mountain West and Junker properties provides a tremendous opportunity to West. With these additions, we are excited to have begun exploration of our properties, seeking to expand on our previous work done in 2021. We look forward to receiving and disclosing the results of our exploration program in due course."

Under the Option Agreement, West has the option to earn a 100% interest in the Claims by issuing an aggregate of 7,000,000 West common shares (each, a "Share") to ESN and its affiliates as follows: 4,750,000 Shares at a deemed price of $0.19 per Share as soon as reasonably practicable following execution of the Option Agreement; 1,125,000 Shares within six months of execution of the Option Agreement; and 1,125,000 Shares within one year of execution of the Option Agreement. Any Shares issued under the Option Agreement will be subject to a four month hold period in accordance with applicable securities laws. West intends to issue the initial 4,750,000 Shares on or about October 22, 2024.

On exercise of the option under the Option Agreement, West will grant to ESN a 1.0% net royalty interest on the Claims. West will have the right to buy back one half (1/2) of the royalty (leaving the Optionor with a 0.5% royalty) for a period of one year following the commencement of commercial production for $500,000.

West also announces that it has entered into an agreement with a creditor to settle $24,000 of debt by issuing an aggregate of 126,315 common shares of the Company at a deemed price of $0.19 per share. When issued, the shares will be subject to a four month hold period in accordance with the applicable securities laws.

Harrison Cookenboo, Ph.D., P.Geo., a "Qualified Person" for the purpose of National Instrument 43-101, has reviewed and approved the scientific and technical information included in this news release.

About West Mining Corp.

West Mining Corp. is a mineral exploration company acquiring and developing advanced and early-stage exploration projects. Its flagship project is its 100% owned, 9000-hectare prospective Kena Project located near Nelson, British Columbia. The Kena Project comprises three adjoining Properties: Kena, Daylight and Athabasca. An independent NI43-101 mineral resource estimate for Kena in 2021 reported 561,900 oz Au indicated at a grade of 0.544 grams per tonne gold (g/t Au) and 2,773,100 oz Au inferred at a grade of 0.486 g/t Au in the Gold Mountain, Kena Gold, and Daylight Zones (Bird, 2021; www.sedarplus.ca). The Daylight property contains the historic past producing Daylight, Starlight, Victoria, Irene, and Great Eastern gold mines. Along trend to the north is the Athabasca Property, with the historic Athabasca Gold Mine. The Company also holds a 100% interest in its Spanish Mountain and Junker properties.

For additional information, please refer to the Company's public disclosure record available on SEDAR+ at www.sedarplus.com.

Contact Information

Nader Vatanchi
CEO
nadervatanchi@hotmail.com
778-881-4631

SOURCE: West Mining Corp.

View the original press release on accesswire.com

FAQ

What is the size of the new mineral claim added to West Mining Corp's Spanish Mountain West property?

The new mineral claim added to West Mining Corp's (WESMF) Spanish Mountain West property covers 412.93 hectares, representing a 45% increase in the property's area.

How many shares will West Mining Corp issue to acquire the new mineral claims?

West Mining Corp (WESMF) will issue a total of 7,000,000 common shares to acquire the new mineral claims, distributed in three tranches over one year.

What exploration activities has West Mining Corp started on the new properties?

West Mining Corp (WESMF) has begun exploration of the Junkers and Spanish Mountain properties, starting with multispectral satellite image analysis integrated with existing geophysical and sampling surveys.

How much debt is West Mining Corp settling through share issuance?

West Mining Corp (WESMF) is settling $24,000 of debt by issuing 126,315 common shares at a deemed price of $0.19 per share.