Straightup Acquires Digital Database for the RLX Properties, Red Lake District, Ontario
The Company is pleased to announce that it has entered into an agreement with Tri Origin Exploration Ltd. ("Tri Origin") to acquire a digital database (the "Digital Database") of compilation and field exploration data (the "Acquisition") for the RLX North and RLX South properties (the "RLX Properties").
The Company has recognized the value in the extensive exploration data and compilation work completed by Tri Origin between 2004 and 2014 on the RLX Properties. The exploration programs completed by Tri Origin consisted of geological mapping, overburden geochemistry, airborne and ground geophysical surveying, and diamond drilling. Exploration completed by Tri Origin has identified mafic volcanic rocks including high iron tholeiitic and basaltic komatiite, both of which are known to occur within the tholeiitic-komatiitic Bamler sequence of the Red Lake Greenstone Belt, which host the majority of past and current gold production in the Red Lake district. Although the data comprising the Digital Database is generally available in the public domain, it is in a variety of analogue formats not easily transferable into a useable digital database.
The significant volume of the Digital Database will facilitate effective time and cost saving target generation to locate specific rock types associated with the gold mineralization within the Red Lake camp. The Digital Database is comprised of, but not limited to:
- 1452 kilometres of helicopter VTEM airborne survey – 100 metres spacing;
- > 150 kilometres of Induced Polarization in multiple grids;
- 5504 humus and 2305 soil geochemical sample results;
- extensive geochemistry samples across all rock types;
- detailed geological and structural mapping;
- 38 diamond drill-hole digital database; and
- compilation of historic exploration and government geoscience,
Matthew Coltura, the Company's Chief Executive Officer and President, stated: "The acquisition of Tri Origin's extensive Digital Database is a great benefit to moving the RLX Properties forward in a cost-effective manner. The Digital Database will allow Straightup to maximize exploration dollars without having to duplicate previously completed exploration. Additionally, the Company's discussions with Tri Origin have provided access to the guiding principles and interpretations that directed their exploration."
The Digital Database is in the process of being integrated with the Company’s current project database. The Company will formulate its plans for the next steps of exploration on the RLX Properties upon completion of the integration.
In consideration for the Acquisition, the Company will pay a purchase price (the "Purchase Price") consisting of an aggregate cash payment of $100,000 and the issuance of 200,000 common share purchase warrants (each, a "Warrant"). The Purchase Price is payable as to (i) $50,000 cash and 100,000 Warrants upon the closing of the Acquisition (the "Closing"), and (ii) $50,000 cash and 100,000 Warrants upon the earlier of (A) the commencement of a work program by the Company on either of the RLX Properties, or (B) the date that is six (6) months from the Closing. The Warrants will each be exercisable to purchase one common share in the capital of the Company for a period of three (3) years from the date of issuance at an exercise price of $0.26 per share.
Brent Clark, P. Geo., a qualified person as defined by NI 43-101, has reviewed the scientific and technical information that forms the basis of this news release and has approved the disclosure herein. Mr. Clark is independent of the Company.
About Straightup Resources
Straightup is engaged in the business of mineral exploration and the acquisition of mineral property assets in Canada. Its objective is to locate and develop economic precious and base metal properties of merit. In addition to exploration of its Red Lake Division properties, Straightup intends to conduct exploration on the Hi-Mars Property. The Hi-Mars Property consists of 11 contiguous mineral titles covering an area of 1,788 hectares located approximately 17 kilometres northeast of the City of Powell River in the southwest British Columbia, Canada, within the Vancouver Mining Division.
On Behalf of the Board of Directors
Chief Executive Officer, President and Director
For further information, please contact:
Chief Executive Officer, President and Director
This news release includes certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the Closing, the expected utility of the Digital Database, anticipated exploration activities and program results from exploration activities on the RLX Properties, the discovery and delineation of mineral deposits/resources/reserves and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as "pro forma", "plans", "expects", "will", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements are based on certain assumptions regarding the Company including, without limitation, that the Closing will occur, that market fundamentals will result in sustained precious metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future exploration and development of the Company's projects in a timely manner, the availability of financing on suitable terms for the exploration and development of the Company's projects and the Company's ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, statements as to the anticipated business plans and timing of future activities of the Company, including anticipated exploration work on the RLX Properties, the fact that the Company's interest in the RLX Properties is an option only and there is no guarantee that such interest, if earned, will be certain, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits, requirements for additional capital, future prices of gold, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, accidents, labour disputes and other risks of the mining industry, the ability of the Company to obtain sufficient financing to fund its business activities and plans, delays in obtaining governmental and regulatory approvals (including of the Exchange in respect of the Offering), permits or financing, risks relating to epidemics or pandemics such as COVID–19, including the impact of COVID–19 on the Company's business, financial condition and results of operations, changes in laws, regulations and policies affecting mining operations, the Company's limited operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities, as well as other risks and uncertainties disclosed in the Company's latest Management's Discussion and Analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this presentation or incorporated by reference herein, except as otherwise required by law.