Business
Silver Spruce Amends Earn-in Agreement and Acquires 100% Interest in Melchett Lake Zn-Ag- Cu-Au Volcanogenic Massive Sulphide Project, Nakina, Ontario
BEDFORD, NS / ACCESSWIRE / February 15, 2024 / (TSXV:SSE) - Silver Spruce Resources Inc. ("Silve...
About this update from Silver Spruce Resources Inc.
[{"type":"text","content":"Silver Spruce Amends Earn-in Agreement and Acquires 100% Interest in Melchett Lake Zn-Ag- Cu-Au Volcanogenic Massive Sulphide Project, Nakina, OntarioBEDFORD, NS / ACCESSWIRE / February 15, 2024 / (TSXV:SSE) - Silver Spruce Resources Inc. (\"Silver Spruce\" or the \"Company\") is pleased to announce that it acquired a 100% interest in the 112-square kilometre (11,236 ha) Melchett Lake project (\"Melchett\" or the \"Property\") in accordance with the Option and Purchase Agreement among the Company and three third party vendors (the \"Vendors\") dated November 20, 2019 (the \"Original Agreement\"), as amended. Melchett covers a total of 485 claims in one contiguous property (Figure 1).\"We are very excited to consolidate ownership of a large claim package with numerous areas of known, though underexplored, polymetallic mineralization. The Company negotiated significant favourable revisions to the terms of the Original Agreement and completed the 100% earn-in subject to a 2% Net Smelter Royalty (\"NSR\")with industry-standard buyout options,\" said Greg Davison, Silver Spruce Vice-President Exploration and Director. Figure 1. Melchett Lake claims (black cells) showing areas of recent staking by Company and Vendor (Key Lake and Relf North, and Colpitts Lake), known zones of An-Ag-Cu-Au-Pb mineralization, and additional targets with indicated geophysical, geochemical and/or geological anomalies.The Original Agreement was signed on November 20, 2019 (see Press Release of November 26, 2019) and subsequently amended on November 20, 2020 (Amendment #1), October 31, 2022 (Amendment #2), February 27, 2023 (Amendment #3) and November 20, 2023 (Amendment #4).Pursuant to Amendment #1, due to the global pandemic, the parties agreed to amend the amount of the exploration expenditures required to be incurred by the Company by the first and second anniversaries of the Original Agreement as follows: $50,000 by November 20, 2020, $250,000 by November 20, 2021 and the remaining $700,000 by November 20, 2022.Under Amendment #2, the cash payment of $50,000 due to the Vendors on November 20, 2022 was deferred to November 20, 2023. The parties also agreed that the Company will make an additional payment of $50,000 and issue 2,000,000 common shares of the Company to the Vendors on November 20, 2023. In addition, the due date for the completion of the rem...