Aranjin Resources Announces Acquisition of Sharga Copper Project
Ulaanbaatar, May 19, 2021 - Aranjin Resources Ltd. (TSXV: ARJN) (the "Company" or "Aranjin Resources") is pleased to announce that it has entered into an agreement to acquire the highly prospective Sharga Copper Project (the "Sharga Project" or "Project"). The Sharga Project is located in the Gobi Altai region of Mongolia near the Chinese border and is comprised of one Mineral Exploration Licence covering over 9,000 hectares.
The Sharga Project is located in the Sharga Soum of Gobi Altai Province and 80 km from the Altai city. The project is situated only 20 km away from key roads linking Altai to China. The accessibility to the Project area is well developed including paved road and/or airline to Ulaanbaatar.
Prior exploration at the Project has defined three high grade copper targets and extensive electromagnetic anomalies typical of massive copper sulphides. Prior work has included 74 rock chip samples, two diamond core drill holes totaling 222.5 metres, 77 drill core samples, 921 line kilometres of ground magnetics and 40 line kilometres of ground based electromagnetic geophysics.
A single drill hole was completed into two of the better electromagnetic anomalies with better drill results including:
East Sharga Discovery (one drill hole to 172.5 metres depth)
- SHD001 - 37.8m at 0.95% copper, 1.37g/t gold and 6.8g/t silver from 132.6 metres
West Sharga Discovery (one drill hole to 50 metres depth)
- SHD002 - 11m at 0.15% copper and 0.12g/t gold from 28 metres.
These are highly encouraging drilling results for such an early-stage project. The Company plans to commence drilling and additional geophysics at the Sharga Project in the next month, following completion of drilling of a single hole at the Company's Bayan Undur Copper Project.
Mr Wood, Executive Chairman of Aranjin Resources stated, "We are extremely pleased to secure the highly prospective Sharga Copper Project. Early drill results are highly encouraging, with one ore grade copper interval already being intersected at the East Sharga Discovery. We plan to commence additional geophysics and drilling to follow up on this exciting new discovery. Mongolia is the home for new big copper discoveries and the Company is excited to have added the Sharga Copper Project to its expanding portfolio of copper projects."
The Company will acquire the project through the purchase of all of the issued and outstanding equity interests in a Mongolian LLC company, which is the 100% owner of the Sharga Project. As consideration for the acquisition, the Company will pay a total of US$1.5 million in cash in instalments and issue 30 million common shares in instalments, provided the issuance would not result in the vendor owning over 9.9% of the issued and outstanding common shares of the Company. The vendor is an arm's length party to the Company.
In order to fund the cash portion of the acquisition, Aranjin Resources has entered into a term sheet for the issuance of a $1,814,400 (approximately US$1.5 million) unsecured convertible debenture. The debenture will have a term of 12 months and bear interest at a rate of 15% per annum to be accrued and paid at maturity in cash or, at the option of the debenture holder, in common shares. The principal amount of the debenture will be convertible at any time during the term into common shares of Aranjin Resources at a price of $0.055 per share. In addition, the Company has agreed to grant the debenture holder a 1% net smelter returns royalty over the Sharga Project.
The completion of the acquisition and financing are subject to TSX Venture Exchange approval. All securities issued pursuant to the acquisition and financing will be subject to a statutory hold period of four months and one day in accordance with applicable securities laws.
The scientific and technical information contained in this news release has been reviewed and approved by Enkhtuvshin Khishigsuren, a Qualified Person for the purposes of National Instrument 43-101 - Disclosure Standards for Mineral Projects.
On behalf of the Board
Matthew Wood
Chairman
Aranjin Resources Ltd.
+976 7732 1914
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