\Metals Creek Resources Receives Final $20,000 Option Payment and 350,000 shares from Magna Terra Minerals for Jacksons’ Arm Option
Toronto, Ontario, 24 August, 2020 - Metals Creek Resources Corp. (TSX-V:MEK) (OTC:MCREF) (Metals Creek or the “Company”) is pleased to announce that the company has received the final $20,000 option payment and 350,000 shares (Issued at a deemed price of $0.20), for the Jacksons’ Arm Property (the “Property”) from Magna Terra Minerals Inc. (TSX-V:MTT) (“Magna Terra”).
On 8 November 2016, Metals Creek announced that the company had entered into an option agreement with Anaconda Mining Inc. (TSX-V:ANX, or “Anaconda”), whereas Anaconda had the right to acquire a 100% undivided interest in the Property. (see MEK news release dated 8 November 2016). On August 12, 2020, Magna Terra, announced that it a completed the acquisition of Anaconda's wholly owned subsidiary, 2647102 Ontario Inc.’s which held the Great Northern Project, including the Jacksons Arm Property.
Magna Terra, through it’s subsidiary 2647102 Ontario Inc. owns or has an options to acquire a 100-percent interest in the Great Northern and Viking Projects in Newfoundland and Labrador, and the Cape Spencer Project in New Brunswick.
The original agreement with Anaconda on the Property was amended to facilitate the acquisition by Magna Terra (see MEK news release dated 12 November, 2019). Under the revised terms of the Jackson’s Arm Agreement, Anaconda issued to Metals Creek 50,000 Consideration Shares on 7 November, 2019 and Magna Terra paid $20,000 in cash and issued $70,000 in MTT shares (350,000 shares at a price of $0.20 per share) on 21August, 2020.
Magna Terra has now earned a 100% interest in the Jackson’s Arm Property. The Jackson’s Arm Agreement provides for a two percent (2%) net smelter returns royalty (“NSR”) to MEK on the sale of gold bearing mineral products from the Jackson’s Arm Property. The NSR is capped at $1,500,000, after which, the NSR will be reduced to one percent (1%).
Read at:
www.metalscreek.com/august-24-2020
