Searchlight Resources Receives Final Payment for Sale of New York Canyon Property
VANCOUVER, March 30, 2020 - Searchlight Resources Inc. ("Searchlight" or the "Company") (TSX-V:SCLT) announces that it has received the final payment of $225,000 from the sale of the New York Canyon Property, NV (the "Property") to Emgold Mining Corp., a company listed on the TSX Venture Exchange under the symbol "EMR", ("Emgold"). Under the Agreement terms, Searchlight will transfer all its interest in and to the New York Canyon Property to Emgold and, in consideration of which, Emgold will have paid Searchlight CAD $275,000 and issued 2,941,176 common shares of Emgold.
Under the terms of the Claim Purchase Agreement between Emgold and Searchlight, Emgold, agreed to purchase a 100% interest in the 21 patented and 60 unpatented mineral claims comprising the Property (at that time) from Searchlight under the following terms:
- C$10,000 on signing the LOI (paid);
- C$40,000 on closing of the Transaction (paid);
- C$500,000 in common shares of the capital of Emgold at the date of closing of the Transaction, with the share price based on the 30-day volume weighted average price of the Company's share immediately prior to the announcement of the Transaction - 2,941,176 shares at C$0.17 per share, with the shares subject to Right of First Refusal provisions (paid);
- C$100,000 within 6 months of the date of closing of the Transaction;
- C$100,000 within 12 months of the date of closing of the Transaction; and
- C$100,000 within 18 months of the date of closing of the Transaction.
In the Claim Purchase Agreement with Searchlight, Emgold had the option of accelerating the acquisition. If the outstanding payments (3 x C$100,000) were made on or before the 6 month anniversary of the closing of the Transaction, Emgold would be entitled to a 25% discount on the outstanding balance, reducing the amount of the payment due to C$225,000.
On February 11, 2020, Emgold announced it had signed an Earn-In with Option to Joint Venture Agreement with Kennecott Exploration Company ("Kennecott"), a subsidiary of Rio Tinto PLC (LSE: RIO:L, ASE: RIO.AX NYSE: RIO.N) for the Property. Kennecott can earn up to a 75% interest in the Property by completing US$22.5 million in exploration expenditures. Kennecott staked 265 unpatented mineral claims, expanding the Property to 21 patented and 417 unpatented mineral claims, totaling approximately 8,700 acres
Under the terms the Earn-In with Option to Joint Venture Agreement between Kennecott and Emgold, Kennecott elected to pay this discounted payment to Searchlight, on Emgold's behalf, as part of its expenditures under the First Option.
About Searchlight Resources
Searchlight Resources Inc. is a Canadian mineral exploration and development company listed on the Toronto Venture Exchange (TSX-V: SCLT). 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. These are two of the top jurisdictions in the Canada for mining investment, as ranked by the Fraser Institute
- to target known highly productive geological belts, including the Flin Flon - Snow Lake Greenstone Belt and the Abitibi Greenstone 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.
On behalf of the Board of Directors,
"Stephen Wallace"
Searchlight Resources Inc.
Stephen Wallace P.Geo, President, CEO and Director
Contact:
Searchlight Resources Inc.
Investor Relations
(604) 331-9326
info@searchlightresources.com
Forward-Looking Statements
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.
SOURCE: Searchlight Resources Inc.