Vancouver, British Columbia--(Newsfile Corp. - November 15, 2024) - Mineral Road Discovery Inc. (CSE: ROAD) (the "Company" or "ROAD") announces it has entered into an agreement dated November 14, 2024 (the "Acquisition Agreement") to acquire certain licenses that make up the Wheeler and Bergeron properties within the Labrador Trough Area of Quebec, Canada (together the "Project").
The Wheeler property, comprised of 245 claims covering 11,797 hectares (or 29,151 acres), is prospective for copper, nickel, cobalt, and platinum group elements whereas the Bergeron Property, comprised of 110 claims covering 5,123 hectares (or 12,659 acres) is prospective for uranium.
The Wheeler Property
The Wheeler property is located approximately 150 kilometres north of the community of Schefferville, Québec.
The Company is not aware of any modern exploration conducted on the property. The most recent notable exploration conducted on the property appears to have been conducted by Cominco and SEREM LTEE. in the 1960's. They concentrated their work programs within the western portion of the property where large boulders containing varying amounts of chalcopyrite, chalcocite, bornite and malachite, were discovered. Their work culminated with the drilling of five diamond drill holes in 1969.
The highlights from the 1969 drill program were:
| Drill hole | Interval (ft) | Interval (m) | Copper (%) |
| 69-1 | 9 | 2.74 | 0.69 |
| 69-2 | 14.5 | 4.42 | 0.76 |
| 69-3 | 24 | 7.32 | 0.51 |
| 69-4 | 10 | 3.05 | 0.59 |
| and | 22 | 6.71 | 0.93 |
Note: that these intervals appear to be core length and the true width of the intervals is unknown. In addition, the assay methods as well as QA/QC protocols are unknown.
Additional data, made available via the Quebec Government archives, consists of lake sediment and till sampling as well as airborne surveys.
The property covers 25 kilometres of a significant east/west trending magnetic anomaly that averages approximately 1.5 kilometres in width. This anomaly appears to be associated with rocks of peridotite composition.
The company has plotted eleven (11) lake sediment samples that span the entire 25 kilometre length of the property. The samples range in values from 63 to 490 ppm copper and from 65 to 194 ppm nickel. In addition, the samples contain anomalous values of cobalt. The sample that returned 490 ppm copper is very significant because it ranks as the 59th highest sample result of the 162,307 lake sediment samples taken across the province by the Quebec Government (Source: https://sigeom.mines.gov.qc.ca).
A sample of fine fraction till returned 81.8 ppb gold at the eastern edge of the property. This value is among the top five for the province out of 7,082 samples of fine fraction till samples analyzed (Source: https://sigeom.mines.gov.qc.ca).
The association of copper, nickel and cobalt mineralization with rocks of mafic to ultramafic compositions indicates that platinum group elements may also be present. The Company will continue to compile data through the winter with an anticipated field program to commence in 2025.
The Bergeron Property
The Bergeron property is located approximately 125 kilometres southwest of the community of Kuujuuaq, Québec.
The history of exploration on the property dates back to the 1940's with the search for iron deposits. The focus of exploration programs switched in the 1970's when it was realized there was potential for uranium in the area.
The Company has access to limited data for the property. Uranium values range from 0.009 to 0.417 U3O8 from ten grab samples that define the Bergeron uranium showing.
Rocks underlying the property include a variety of course and fine-grained sediments as well as iron formations belonging to the Churchill Province that are in contact with intrusive rocks belonging to the Superior Province.
The Company anticipates that work on the property will include identification, mapping and re-sampling of the historic uranium showings as well as prospecting/exploration on trend for previously unrecognized uranium showings.
Terms of the Acquisition Agreement
Pursuant to the terms of the Acquisition Agreement, in consideration for the acquisition of the Project, the Company has agreed to issue an aggregate of 7,500,000 common shares of the Company, at a deemed price of $0.08 per share, to Mineral Road Capital Partners Inc. and Wayne Holmstead (collectively the "Vendors").
Both properties are subject to a 2% Net Smelter Return (or 'NSR') with a provision to be able to buyback 1% (or 50% of the total NSR) for $1,000,000.
Wayne Holmstead, P.Geo. (OGQ), a consultant of the Company, as well as a vendor of, and the Qualified Person for, as defined by National Instrument 43-101, the Wheeler and Bergeron Properties, has reviewed and approved the technical information provided in this news release.
Emma Fairhurst, Chairperson and a director of the Company, is considered a related party. Damien Reynolds is a Director of Mineral Road Partners Inc. and is also an Insider of the Company jointly holding 56.34%.
The Acquisition Agreement is considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") however the Company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of such insider participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25% of the Company's market capitalization.
The Acquisition Agreement is subject to approval by the CSE. The common shares issued upon closing of the Acquisition Agreement will be subject to a four month hold period in accordance with applicable securities laws.
FOR FURTHER INFORMATION CONTACT:
Jason Cubitt
Chief Executive Officer
Emma Fairhurst
Chairperson
Mineral Road Discovery Inc.
Telephone: 778 819 1870
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230212
SOURCE: Mineral Road Discovery Inc.
