Crest Resources Options The Enterprise Property in Newfoundland to Opawica Explorations Inc. and Enters Staking Agreement
Vancouver, October 26, 2020 - Crest Resources Inc. ("Crest" or the "Company") (CSE:CRES) (CNSX:CRES.CN) (OTC:CRSTF) is pleased to announce that the Company has entered into a property option agreement (the "Agreement") with Opawica Explorations Inc. (TSX: OPW) ("Opawica") to sell Opawica up to a 100% undivided interest, subject to a retained royalty reserved by Crest, in the Enterprise property (the "Property") located in the Exploits Subzone of Central Newfoundland and Labrador. Property Highlights
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- The Enterprise Property represents an exceptional geophysical, geological and structural triple junction target which the Crest Resources development team identified, based on recently released mag data, cross referenced with regional geology in the Exploits Subzone belt.
- The Enterprise property features both epizonal gold targets, and an undefined magnetic anomaly on the margin of a granitic body.
- Pursuant to the Crest Resources operating model, this high interest property will be vended into Opawica, giving them an opportunity to develop the property, while Crest retains an interest in the property, receiving cash from Opawica.
Michael Collins, Crest President and Chief Executive Officer, comments "Our team worked with new Newfoundland and Labrador Geological Survey mag and geologic data, and identified an extreme mag high at the intersection of a large scale intrusive, meta-sediments, and inferred deep seated dog-leg structural faulting. Further in our research it was shown that Rio Tinto performed airborne electromagnetic and magnetic surveys in 1979 and followed up with a minor drilling exploration program in spring of 1980, with one 86m drill hole in this claim group. Given the history of major miners exploring this region, we believe these factors warrant a modern, second look on this ground - and Opawica has the expertise and experience to do that."
Transaction Outlined
Opawica may earn an initial 80% interest in the Property by paying an aggregate of $1,450,000 cash and incurring $5,000,000 in work expenditures over a four year period as follows: (i) $250,000 cash due upon signing the Agreement (the "Agreement Date"); thereafter, optional commitments of (ii) $450,000 cash and incurring $1,000,000 in exploration expenditures on or before the second anniversary of the Agreement Date; (iii) $250,000 cash and incurring a further $2,000,000 in exploration expenditures on or before the third anniversary of the Agreement Date; and (iv) $500,000 cash and incurring a further $2,000,000 in exploration expenditures on or before the fourth anniversary of the Agreement Date. Upon completing the above payments and expenditures, Opawica shall be deemed to have exercised the Option and shall be entitled to an undivided 80% right, title and interest in and to the Property, subject to the 2.5% NSR retained by Crest. Subsequent to the exercise date, Opawica may earn an additional 20% interest in the Property by paying market price in cash or in kind based on an independent valuation of the Property. The Agreement is subject to any applicable approvals of the TSX Venture Exchange and the Canadian Securities Exchange.
Map of Claims, Total Magnetic Intensity
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Exploration, Development and Mine Operating Joint Venture Agreement
The Company further announces that it has entered into an exploration, development and mine operating joint venture agreement with Crest whereby Crest will identify claims to be staked in the Newfoundland area, that are prospective for gold mineralization, and the Company will pay for the costs of staking the same, and thereafter the parties will explore and develop the staked claims on a joint venture basis under which the Company will hold an initial 70% interest and Crest will hold an initial 30% interest. The Company has staked 906 claims under this agreement.
The technical portion of this news release has been reviewed and approved by Mr. Nicholas Rodway, P.Geo. and VP Corporate Development and a shareholder of Crest, a qualified person as defined under NI 43-101.
Resignation of Corporate Secretary
Ms. Sandra Wong has resigned as Corporate Secretary of the Company in order to focus on other professional roles. The Company would like to thank Ms. Wong for her valuable contributions and wish her well in her future endeavours.
About Opawica Exploration Inc.
Opawica Explorations Inc. is a junior Canadian exploration company with a strong portfolio of precious and base metal properties within the Rouyn-Noranda region of the Abitibi Gold Belt in Quebec. The Company's management has a great track record in discovering and developing successful exploration projects. The Company's objective is to increase shareholder value through the development of exploration properties using cost effective exploration practices, acquiring further exploration properties, and seeking partnerships by either joint venture or sale with industry leaders.
About Crest Resources Inc.
Crest Resources Inc. is a British Columbia company listed on the Canadian Securities Exchange under the symbol "CRES". The Company's principal business activity is the acquisition, exploration and evaluation of mineral property assets in Canada, Australia and Peru and the investment in mineral exploration companies and related mining technologies of merit. Crest is committed to creating significant shareholder value through advancing a high-quality blended portfolio of resource development and discrete technology plays that build on corporate knowledge and relationships and drive value outside of the mining cycle, as well as direct investment in undervalued exploration plays at an early stage.
FOR FURTHER INFORMATION CONTACT:
Christopher Huggins
Vice President, Capital Markets
Telephone: 604-968-4844
Michael Collins
President and CEO
Telephone: 604-681-3170
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Forward-Looking Statements
This news release contains certain 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. Readers 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 including, but not limited to, market conditions, availability of financing, actual results of the Company's exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.
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