VANCOUVER, British Columbia, July 12, 2019 (GLOBE NEWSWIRE) -- MK2 Ventures Ltd. (TSXV/NEX: MK.H; "MK2" or the “Company”) is pleased to announce that, further to its news release of May 2, 2019, it has completed the acquisition (the "Acquisition") of the Bakar high grade copper property located on Northern Vancouver Island, British Columbia (the "Bakar Property").
As announced on May 24, 2019, the Company also acquired additional mineral claims contiguous to the northwest and southeast of the Bakar Property, increasing the size of the Bakar Property from 1,349 hectares to 15,687 hectares.
Pursuant to the purchase agreement dated May 1, 2019 (the "Purchase Agreement") among the Company and Longford Capital Corp. and James Rogers, as vendors (together, the "Vendor"), the Company has made the following payments and share issuances to the Vendor in payment of the purchase price for the Bakar Property:
- $10,000 cash deposit paid on the date of execution of the Purchase Agreement;
- $40,000 cash payment paid on closing of the Acquisition;
- 500,000 common shares of the Company issued on closing of the Acquisition, which common shares are subject to a statutory hold period expiring 4 months from the date of issue; and
- 750,000 common shares of the Company issued on closing of the Acquisition which common shares are subject to a hold period expiring 6 months from the date of issue.
In addition, the Company has granted the Vendor a 2% NSR in respect of the Bakar Property subject to the right of the Company to repurchase 1% of the royalty for $1,500,000 cash, and the remaining 1% for $5,000,000 cash.
Pursuant to the Purchase Agreement the Company must incur $200,000 in expenditures (the "Expenditure Commitment") on the Bakar Property within six (6) months of the date hereof. As announced on June 10, 2019, the Company completed an Airbone Versatile Time Domain Electromagnetic (VTEM) Plus survey on the Bakar Property and commenced a geological mapping and sampling program. Having recently completed the geological sampling program, the Company expects that the Expenditure Commitment has been satisfied.
In connection with the Acquisition, the Company has filed a technical report on the Bakar Property in accordance with National Instrument 43-101-Standards of Disclosure for Mineral Projects. The technical report is available under the Company's profile on www.sedar.com.
Reactivation, Graduation to TSXV and Name Change
The Company is also pleased to announce that its application to reactivate from NEX to the TSX Venture Exchange as "District Metals Corp." has been approved, subject to the completion of the acquisition of the Bakar Property.
Effective on the open of trading on July 17, 2019, the Company's listing will transfer from the NEX to the TSX Venture Exchange as a Tier 2 Mining Issuer. Also effective at the opening of trading on July 17, 2019 the trading symbol for the Company will change from MK.H to DMX.
On Behalf of the Board of Directors
President and Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding “Forward-Looking” Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including completion of the Company's planned exploration activities in connection with the Bakar Property. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connation thereof.
Such forward-looking information and statements are based on numerous assumptions, including among others, that final regulatory approval to the Reactivation and name change will be obtained, that general business and economic conditions will not change in a material adverse manner and that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: that the Company will not complete the required expenditures and that, as a result, the Bakar Property will be forfeited without any repayment to the Company, negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, reliance on key management and other personnel, potential downturns in economic conditions, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, and risks generally associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.
The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.