Bolt Metals Corp. Announces Letter of Intent to Acquire Nevada Silver-Gold Property and Provides Indonesia Nickel-Cobalt Project Update; Plans Share Consolidation
VANCOUVER, British Columbia, Sept. 17, 2020 (GLOBE NEWSWIRE) -- Bolt Metals Corp. (CSE: BOLT) (FRANKFURT: NXFE) (OTCQB: PCRCF) (the “Company” or "Bolt")
announces the signing of a letter of intent (the “LOI”) for the acquisition of 1261799 BC Ltd. (the “Target”) which will provide Bolt with an option to earn 100%
ownership of the Cherry Creek Property, Nevada USA (the “Proposed Transaction”). Concurrent with the Proposed Transaction Bolt will complete a 6.5 old for 1 new share
Cherry Creek Property
The Cherry Creek Property consists of 24 contiguous patented mineral claims in White Pine County, Nevada and hosts the prior producing Mary Ann, base metal and silver-gold mine (the “Property”). The Property is situated in the Pequop mining district of northeastern Nevada which hosts the Long Canyon and West Pequop gold deposits.
The Property claims are accessible by 1.5 kilometres of gravel service road from interstate paved highway and lie approximately 80 kilometres north of the city of Ely, Nevada
Gold, silver and base metals were discovered in the Cherry Creek District as early as 1861 and associated deposits of scheelite (an ore of tungsten), were discovered and mined between about 1915 and 1958. The Mary Ann Mine was principally a silver, lead, zinc, and gold producer.
Pursuant to the Proposed Transaction, the holders of the issued and outstanding common shares of the Target will exchange such shares in consideration for 10,000,000 post-Consolidation common shares of the Company. The precise exchange ratio (the “Exchange Ratio”) will be determined by the parties following receipt of financial advice and a review of the parties’ respective capital structures, provided, however, that such Exchange Ratio will be determined based on an anticipated 1:1 basis.
The Target currently has the right to earn a 100% interest in and to the Property pursuant to an option agreement by (i) making aggregate total cash payments to the Property optionor of $200,000 and by issuing a total of 1,050,000 shares of the Target to the optionor over a five year period, and (ii) by making a final exercise payment to the Property optionor of $2,000,000 on or before August 31, 2030. On completion of the Proposed Transaction, the Company will assume these obligations. The Target is at arm’s length to the Company.