VANCOUVER, BC / ACCESSWIRE / June 17, 2021 / 79 Resources Ltd. (CSE:SNR) ("79 Resources " or the "Company") is pleased to announce that it has entered into a definitive share purchase agreement with an arm's-length Calgary-based investor to acquire all of the outstanding common shares of Buck Gold Inc. ("Buck Gold")(the "Transaction").
Buck Gold is a privately held exploration company headquartered in Vancouver, British Columbia which controls approximately 1,200 square kilometres (~296,000 acres) of mineral properties located near Houston, British Columbia. The mineral properties controlled by Buck Gold are contiguous to area-holdings of Newmont, Teck and Copper Mountain Mining, and surround Sun Summit Mineral Corp.'s Buck deposit, which has been generating significant market attention through recent drill intercepts.
"The acquisition of Buck Gold is transformative for 79 Resources. We are excited for this generational opportunity to acquire such a sizable and highly prospective land package ideally located in a mining friendly jurisdiction. Helicopter-based geophysical work and ground-based follow-up by Buck Gold has defined a number of immediate high-priority targets adjacent to Sun Summit that 79 Resources will move quickly to further explore once the transaction closes," said Steven Feldman, CEO of 79 Resources.
Figure One: Buck Gold Inc. - Five Point Gold Project
"The Nechako Plateau represents one of the most prospective mining investment regions in British Columbia, with development-stage discoveries like Artemis Gold's Blackwater gold deposit, as well as a new generation of wealth-building discoveries such as Surge Copper's Ootsa project and of course Sun Summit's emerging Buck gold deposit. I am looking forward to providing my support to 79 Resources as it advances an impressive exploration model within a tier-one discovery camp for the benefit of shareholders," stated Ryan Kalt.
To acquire a 100% interest in the securities of Buck Gold, the Company shall issue 80 million common shares (the "SNR Shares") as consideration for all outstanding common shares of Buck Gold now held by Ryan Kalt ("Mr. Kalt"). The SNR Shares will be subject customary escrow provisions imposed by the Canadian Securities Exchange (the "CSE"). The properties held by Buck Gold are subject a 2% gross royalty in favour of Mr. Kalt.
The Transaction is expected to constitute a Fundamental Change of the Company in accordance with the policies of the CSE, and as such is subject to certain CSE filings, shareholder approval, CSE approval and other customary regulatory approvals (as applicable). Completion of the Transaction will result in a change of control, as that term is defined by the policies of the CSE, with Mr. Kalt holding, on a post-closing and direct basis, a total of 80 million common shares to be issued by 79 Resources pursuant to the Transaction. A shareholder meeting to approve the proposed Transaction is expected to be held in August 2021.
Upon closing, the Company has agreed to pay a finder's fee of 2 million common shares in connection with the Transaction to an arm's-length party.
Mr. Garry Clark, P. Geo., is the Independent Qualified Person for 79 Resources and he has reviewed and approves the technical content of this press release.
About 79 Resources Ltd.
79 Resources Ltd. is a recently formed junior mining exploration company. The Company's objective is to acquire, explore and develop precious and base metal properties of merit.
ON BEHALF OF THE BOARD
Steven Feldman Director
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Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward -looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at WWW.SEDAR.COM).
SOURCE: 79 Resources Ltd.