TORONTO, July 24, 2019 /CNW/ - Sable Resources (TSX.V:
SAE) (the "Company" or "Sable") is pleased to announce the signing
of an option agreement (the "Agreement") with Teck Peru S.A (Teck), a 100% subsidiary of Teck
Resources Limited, to acquire 100% interest in the Kirio Property.
Kirio is contiguous to Sable's Scorpius Project located in the
Miocene Gold Belt of Central
Peru.
Terms
Subject to the Exchange's approval, Sable has an option to
acquire 100% interest in the Property (the "Option"),
subject to a Back-In Right and NSR Royalty, by incurring
US$2,000,000 in expenditures over
five years, including a minimum of 4,000 metres of drilling, and
issuing 625,000 common shares to Teck upon the Exchange's approval
of the Agreement and C$600,000 in
common shares on exercise of the Option.
Teck retains a back-in right (the "Back-in Right") to earn back
to a 65% interest in the Property by incurring 2.5 times Sable's
expenditures, not to exceed US$5,000,000, over four years and by making a
cash payment to Sable of US$500,000.
Teck can elect to pursue the Back-In Right by delivering
notice within 90-days following receipt of Sable's Option Notice.
If the Back-in Right is not exercised, Teck will retain a
2.0% net smelters return royalty on the Property (the "NSR
Royalty").
Upon Teck exercising the Back-In Right, a Joint Venture shall be
formed. whereby each party shall fund its pro-rata share of future
expenditures or incur dilution. The party with the majority
interest shall be the operator of the Joint Venture and all
decisions concerning the operation of the Joint Venture shall be
subject to simple majority approval.
"The addition of the Kirio Property adds a package of highly
prospective ground directly on trend from our defined target at
Scorpius," stated Terry Harbort VP
of Corporate Development for Sable. "Our exploration team will be
aggressively exploring this adjacent ground in anticipation of the
receipt of the drill permit for Scorpius."
ABOUT THE SCORPIUS PROJECT
Acquired as part of Sables Upper Level Epithermal Strategy, the
Scorpius High-Sulphidation Project is located in the prolific
Miocene Gold Belt of Central Peru.
Historic values at the Scorpius Project range between 0.1 and
7.7g/t Au and define a 1km by 0.5km anomalous area coincident with
volcanic domes, silica ledges, quartz-alunite alteration and
high-sulphidation pathfinder. Sable has the rights to acquire
100% of the Scorpius Project for total payments of $1 million dollars over three years.
ABOUT SABLE RESOURCES LTD.
Sable is a well-funded junior grassroots explorer focused on the
discovery of new precious metal projects through systematic
exploration in endowed terranes located in favorable, established
mining jurisdictions. Sables' main focus is developing their large
portfolio of new greenfield projects to resource stage utilizing
their Upper Level Epithermal Strategy. Sable is actively exploring
the San Juan Regional Program (48,000ha) incorporating the Don
Julio Project in San Juan Province, Argentina, the Mexico Regional Program (1.26
Mha), incorporating the Margarita, Vinata and El Escarpe drill
ready projects and the Scorpius drill ready project in Peru.
We seek safe harbor
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.
SOURCE Sable Resources Ltd.