Searchlight Resources Closes Option Agreement to Acquire Claims in Saskatchewan and Outlines Right of First Refusal
March 26, 2019 (Source) —
- TSXV approval of option of 4 claims adjoining Bootleg Lake Gold project
- Right of First Refusal granted to Searchlight on claims covering over 300,000 hectares of the Flin Flon Greenstone Belt
- VMS base metal and gold exploration targets on optioned and RoFR claim
Searchlight Resources Inc. (“Searchlight” or the “Company”) (TSX-V: SRCH) is pleased to announce that the TSX Venture Exchange (the “TSXV”) has accepted the option agreement (the “Option”) with Diamond Projects Inc. (“Diamond”) a private Saskatchewan company, to earn a 100% interest in four claims (the “Property” or the “Claims”) located near Creighton, Saskatchewan, Canada, five kilometres southwest of the city of Flin Flon, Manitoba.
In addition to the option agreement, Diamond has granted Searchlight a Right of First Refusal (“RoFR”) for Diamond mineral claims on NTS Map Sheet 63L and the portion of NTS Map Sheet 63K located in Saskatchewan. See Map 2 below.
“Searchlight now has access through staking, options and the RoFR to one of the most significant claim positions in the Flin Flon Greenstone Belt. With the announcement of the closure of the 777 mine by Hudbay Minerals, Searchlight has an excellent opportunity to explore and find the next mine to feed the mill complex in Flin Flon,” stated Stephen Wallace, President and CEO of Searchlight. Mr. Wallace further stated, “this puts the Company in a strong position to seek financing and long-term backers to take advantage of this claim position.”
Searchlight has optioned 4 mineral claims totaling 654 hectares that adjoin the Company’s existing Bootleg Lake claims, building the Company’s core land position. (See Map 1 below) The newly optioned claims cover historical gold and volcanogenic massive sulphide (“VMS”) base metal showings, including the Curved Lake VMS and Phantom Ledge Lake Gold targets. See October 4, 2018 press release at https://searchlightresources.com/news/2018/searchlight-resources-options-4-claims-in-saskatchewan-from-diamond-projects/ for details.
Terms of the Option Agreement
- To earn 100% interest in the Claims, subject to a 1% NSR, Searchlight must maintain the claims in good standing and complete 12 years of assessment expenditures on the claims. The assessment expenditure requirements are outlined in the Saskatchewan regulation document “The Mineral Tenure Registry Regulations” The total yearly exploration expenditures for the four claims are summarized in table 1 below.
- Once the 100% interest is earned, Diamond Projects will retain a 1% NSR.
- Further if any Claims optioned by Searchlight from Diamond Projects are sold or optioned by Searchlight to a third party, Diamond Projects is to receive 25% of all cash and share payments.
- The agreement allows Searchlight to modify the size of optioned claims by adding or removing claim units during the life of the Option.
- Any claims or claim units returned to Diamond Project will have a least one year remaining before Good Standing Date.
Exploration Work Commitments
Table 1: Summary of Yearly Exploration Expenditures
Map1: Location of Claims optioned from Diamond Projects
Right of First Refusal
In addition to the option agreement, Diamond has granted Searchlight a RoFR for Diamond mineral claims on NTS Map Sheet 63L and the portion of NTS Map Sheet 63K located in Saskatchewan. The right extends to all 100% owned Diamond claims in this area apart from two claim areas being explored and advanced by Diamond. See Map 2 below.
The RoFR provides that any additional claims optioned by Searchlight will be under the same terms as the first option presented above.
Diamond Projects Inc
Diamond Projects Inc. is wholly controlled by Mr. Shaun Spelliscy who also controls Gem Oil Inc. a 20.1% shareholder of Searchlight. As such Gem Oil is an insider of Searchlight.
Diamond Projects and GEM Oil are exploration companies active in staking, evaluating and holding mineral claims in Saskatchewan. At present these companies hold over 1.3 million hectares of mineral claims throughout the province, one of the largest single claim holders.
Map 2: Location of Right of First Refusal Claims (in green) relative to Searchlight Resources claims and Flin Flon
Stephen Wallace, P.Geo., is Searchlight’s Qualified Person within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.
About Searchlight Resources Inc.
Searchlight Resources Inc.is a Canadian mineral exploration and development company listed on the Toronto Venture Exchange (TSX-V: SRCH). The corporate strategy of the company is:
- to explore and develop opportunities in safe, low risk jurisdictions. The Company holds claims in Saskatchewan and Ontario, Canada and Nevada, USA. These are three of the top seven jurisdictions in the world for mining investment, as ranked by the Fraser Institute.
- to target known highly productive geological belts, including the Flin Flon – Snow Lake Greenstone Belt, the Abitibi Greenstone Belt and the Walker Lane Structural Belt.
- to acquire high quality projects, close to infrastructure, focusing on road access.
- to work closely with stakeholders, including First Nations, Metis, local and provincial governments and local contractors to advance mineral exploration and development in a safe and environmentally sound manner.
Searchlight holds a portfolio of gold, cobalt, copper, vanadium and specialty metal projects from grassroots stage to advanced exploration and NI43-101 resource development.
On behalf of the Board of Directors,
SEARCHLIGHT RESOURCES INC.
Stephen Wallace, President, CEO and Director
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: risks and uncertainties relating to the Company’s limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
NEITHER 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.
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