October 26, 2022 — Silk Road Energy Inc. (TSXV: SLK), doing business under the name of Record Gold, reports that it has received approval of its acquisition of the Four-Nations Grenfell gold property from the TSX Venture Exchange.
The agreement enables Record Gold to earn a 100 percent interest in two claim-blocks comprising 5.2 square kilometres in the Grenfell Township located approximately 8.5 kilometres due west from the Macassa Mine near Kirkland Lake, Ontario.
The Four-Nations Grenfell property claims host multiple gold occurrences according to historical work files submitted to the Ontario Government. There has also been drilling conducted on the property that intersected gold mineralization.
The agreement also includes 13 claim-cells in Northwestern Ontario in the vicinity of the Manitoba border.
This is an arms-length transaction in which Record Gold will pay a private exploration company $50,000 in cash over three years and issue a total of two million shares.
The shares are paid over two years: one million payable upon closing and 500,000 shares each to be issued on the first and second anniversaries of the closing date. There are no work commitments on the properties.
Record Gold will act as sole operator of the exploration program on the claims. The vendor will hold a 1.5% Net Smelter Royalty (NSR) on the Asset. One third of this NSR can be purchased by Record Gold for $400,000.
The company also reports that it has completed three kilometres of magnetic and VLF geophysical surveys on its recently acquired Kenogami East property. As well, Record Gold management visited the Four-Nations Grenfell property, as well as the Kenogami East gold property to verify the locations and existence of data as reported in assessment files.
The Hecmac Syndicate, an exploration group, drilled four short-holes in 1959 which assayed 3.5 grams per tonne gold over 1.07 metres (0.10 oz/t gold over 3.5 feet). Trenching in 1960 by another group reported assay values ranging from 1.7 grams per tonne gold (0.05 oz/t gold) to 16.4 grams per tonne gold (0.48 oz/t gold).
There has also been drilling, trenching and small-scale mining conducted on the adjacent property that intersected significant gold mineralization.
The company also reports that it has closed its private placement announced in 2021. Additional funds in the amount of $12,000 were generated from the issuance of 200,000 shares at $0.06 per share. The terms of this share offering are now no longer available. In connection with this final share issuance was the issuance of 200,000 warrants exercisable at $0.12 per share. A total of $101,000 was raised through this private placement in a series of closings. The company reports that, following this financing, it will have 29,276,104 shares outstanding. This financing is subject to TSX Venture Exchange, regulatory and board approvals.
Qualified Person:
Edward Procyshyn, P.Geo, a qualified person in accordance with National Instrument 43-101, has reviewed and approved the technical information contained in this news release