Calgary, Alberta--(Newsfile Corp. - January 12, 2022) - Silk Road Energy Inc. (TSXV: SLK.H) ("Silk Road") announces its plans to acquire gold exploration properties owned by a private gold exploration company and constitutes a non-arm's length transaction pursuant to mining claim purchase agreement executed on December 20, 2021.
The vendor of the gold exploration properties is Record Gold Corp. ("Record Gold"), an Ontario-based, private gold exploration company. The transaction is a "related party transaction" as defined under MI 61-101 as Mr. Michael C. Judson is a director of Silk Road, a director and the President of Record Gold, a shareholder of Record Gold and a shareholder of Silk Road; Dr. Paul Craig is a director of Silk Road and a shareholder of Record Gold; Vladimir Katic is the President & CEO and a director of Silk Road and a shareholder of Record Gold, Derrick Colling is the CFO of Silk Gold and a shareholder of Record Gold and Mr. David A. Johnson is the Corporate Secretary of Record Gold and Silk Road and a shareholder of Record Gold.
Record Gold has agreed to exchange its 100 percent ownership of two concessions of gold and other precious metals claims located in the Kirkland Lake region of Ontario in return for 9 million shares of Silk Road at a price of $0.05 per share. Following the closing of the transaction, Silk Road would have a total of 27,592,788 issued and outstanding shares.
Record Gold's Amikougami property is a gold exploration concession located 4000 metres from the Macassa Mine owned by Kirkland Lake Gold and is adjacent to and shared with the claim block bordering the Macassa Mine in Ontario ("Amikougami").
The other gold exploration concession owned by Record Gold "Otto" is located approximately nine kilometres to the southwest of Kirkland Lake Gold's Macassa Mine in Ontario. Otto borders the Kirkland Lake Project.
The Amikougami and Otto gold properties consist of 16 patented mining claims including five mining licenses. The combined total for both properties is 192.56 hectares.
Geophysical surveying executed by the previous owner on the property identified several drill targets. According to anecdotal reports, grab samples taken from small pits on Amikougami contained significant gold grades. Similar results were reported from the Otto property as well.
Completion of the transaction is subject to a number of conditions, including TSX Venture Exchange ("TSXV") acceptance and if applicable, disinterested shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
For more information please contact:
Michael C. Judson, Director,
Silk Road Energy Inc.
T. +1-514-865-5496
Website: www.silkroadenergyinc.com
Cautionary Statements
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes", an or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would" , "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: approval of the Private Placement and obtaining a full revocation order. This forward-looking information reflects the Company's current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to: the market acceptance of the Private Placement; the ability of the Company to obtain a full revocation order and the receipt of all required approvals in connection with the foregoing. 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 the Company 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 price for securities; and the delay or failure to receive board, shareholder, court or regulatory approvals. Although the Company 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. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
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