Huntington Announces Closing of the Acquisition of Lago de Oro and its 550km2 El Grande Gold Exploration Project in Nayarit Mexico
CALGARY, AB, March 30, 2022 /CNW/ - Huntington Exploration Inc. (TSXV: HEI) ("Huntington" or the "Company") announces that it has completed its previously announced acquisition of Lago de Oro SA de CV ("LOM") and its El Grande Gold Project ("El Grande" or the "Project") covering a 550 square kilometer area in the southern extension of the Sierra Madre Occidental ("SMO") gold-silver belt in the state of Nayarit, Mexico.
Huntington has completed its acquisition by way of a definitive purchase agreement with an arm's length third party for 100% of the issued and outstanding shares of LOM in exchange for: i) a cash payment of US$500,000; ii) issuance of 4,000,000 common shares of the Company at a deemed price of $0.20 per share; iii) a capped 2% NSR to the vendor; and iv) future share-based "milestone payments" based on the incremental addition of gold-equivalent (gold-silver) NI 43-101 resource ounces above a base 500,000 ounces on any given deposit currently held by LOM, capped at 20,000,000 shares subject to TSXV approval at the time of issuance. The common shares issued in connection with the acquisition will be subject to a hold period of four months and a day from the date of closing.
The acquisition represents a unique opportunity for Huntington to be the first mover in a potential district-scale gold-silver system as the project already contains widespread evidence of gold mineralization with no history of modern exploration or drilling to date.
Bryan Wilson, President and CEO of Huntington, states: "We are delighted to officially grow our portfolio of precious metals exploration properties to now include the El Grande Project. Through this acquisition and Huntington's planned 2022 exploration programs, we feel we have a project pipeline offering strong exploration upside potential in Mexico and Canada, two premium mining jurisdictions. We look forward to start exploration work at El Grande imminently."
The bedrock geology of Nayarit State is underlain by the Upper and Lower Volcanic stratigraphy of the 1,200 km-long SMO gold-silver belt, which extends from south of the property trending northerly to the U.S. border. The geology of the El Grande property is dominated by the mineral rich Lower Volcanic Sequence typical of the SMO and located near the eastern edge of the Gulf of California coastal plain.
The property hosts a number of historical and recently exploited artisanal gold and silver mineral occurrences, associated with district scale geological structures and large undrilled alteration zones, with the presence of widespread geochemical levels of gold and silver. The evidence of gold and silver mineralization is identified within small windows of outcrop exposures in a dominantly low elevation, shallow overburden covered, farming area. The Property has no history of diamond drilling or modern exploration. Five (5) high priority mineral occurrences have been identified to date for immediate exploration follow-up and drilling.
Huntington Exploration is focused on the exploration and development of its portfolio of precious metals properties in Mexico and Canada. The Company's flagship El Grande gold project covers 550 square kilometers in the southern extension of the prolific Sierra Madre Occidental gold-silver belt in the state of Nayarit, Mexico and demonstrating significant gold and silver mineralization.
The Company also owns two early-stage gold exploration projects in Northwestern Ontario, in which the Company is engaged in ongoing exploration. The Winora Project is located near Lingman lake, 325 km north of Red Lake and consists of 17 patented mining claims in that are estimated to be within 500 m and on strike with the historic Lingman Lake gold deposit. The Quartz Lake Project is located 50km east of the prolific Red Lake district and demonstrates many similar geological features of other successful exploration plays in the region.
Huntington Exploration is committed to sustainable and responsible exploration and business activities in line with industry best practices, supportive of all stakeholders, including the local communities in which the Company operates.
For more information, please visit the Company's website at www.huntingtonexploration.ca.
"Bryan Wilson"
President & CEO
Tel: 416-543-9945
Email: [email protected]
Katherine Pryde
Investor Relations
Tel: 646-354-9375
Email: [email protected]
Note: Huntington's website is expected to relaunch in Q2 2022.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", " expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this news release contains forward-looking information regarding: the outlook on the properties and projects of Huntington. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects Huntington's current beliefs and is based on information currently available to Huntington and on assumptions Huntington believes are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of Huntington to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting Huntington; the timing and availability of external financing on acceptable terms; and lack of qualified, skilled labor or loss of key individuals. A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward- looking information can be found in Huntington's disclosure documents on the SEDAR website at www.sedar.com. Although Huntington has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions, or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Huntington as of the date of this news release and, accordingly, is subject to change after such date. However, Huntington expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
SOURCE Huntington Exploration Inc.
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