May 17, 2024 – Record Resources Inc. (TSXV-REC) reports that it has acquired more uranium properties northeast of Thunder Bay, Ontario.
Record Resources has entered into option agreements with two private exploration companies to explore for uranium on an additional 200 claims. The claims are contiguous or in close proximity to the company’s 16,320 hectare (780-claim) Malborne block (see news release of April 8, 2024).
“This is an acquisition of more highly prospective ground for uranium,” said Record Resources CEO, Michael Judson. “We are further building on our land position in the area. The deals happen to be with some of the explorers with whom we are already working.”
The Black Sturgeon crustal fault system forms the western boundary of the company’s claim package. “Our properties are located on a mineralized belt which runs parallel to the Black Sturgeon Fault system,” said Judson.
In an agreement with Optionor One, Record Resources acquired an option on the Church North property located to the southwest of the main Malborne block. The Church North property consists of 100 claims. Optionor One consists of prospecting groups 2758145 Ontario Inc and Robin Dunbar.
In an agreement with Optionor Two, Record Resources acquired an option on the Ferguson Lake property consisting of 75 claims which are located on the north side of the Malborne claim block. Optionor Two are prospecting groups 2758145 Ontario Ltd, Peter Gehrels, and Allan Onchulenko. Also, in the same agreement with Optionor Two, the company acquired an option on the Church Northwest property (14 claims) and the “U” property (11 claims) both situated on the southwest side of the Malborne claim block.
Terms of Agreement:
The terms of the agreement for the Church North property (Optionor One) are the same as they are for the Ferguson Lake properties (Optionor Two). Record Resources can own 100 percent of each package of claims by paying to each Optionor separately $20,000 at closing on or before June 30, 2024 and by issuing a total of 300,000 common shares of the company. On the first anniversary of the closing and additional cash payment of $30,000 is due and on the second anniversary of closing a final cash payment of $50,000 is due.
The Optionors will retain a 1.5% Royalty. Record Resources or its assigns shall have the right at any time to purchase from Optionors zero-point five percent (0.5%) Net Smelter Returns Production Royalty by way of a payment to the Optionor of the sum of $500,000.00. An additional zero-point five (0.5%) Net Smelter Returns Production Royalty can be purchased by Record Resources for $1 million. The final zero-point percent (0.5%) Net Smelter Returns Production Royalty can be purchased by Record Resources for $1.5 million.
The shares to be issued as part of this agreement are valued at $0.05 per share. No finders fee was paid. This arms length agreement was signed on May 2, 2024. This transaction is expected to close on or before June 30 , 2024.
Stock Option Plan
The Board of Directors has granted a total of 6,500,000 stock options in accordance with its stock option plan. Options include 4,000,000 issued to directors, officers and insiders of the company exercisable at $0.05 for a period of five years. In addition, 2,500,000 options were issued to consultants of the company exercisable at $0.05 for a period of five years. All options were granted in accordance with and subject to the company’s stock option plan, the applicable policies of the TSX Venture Exchange and are also subject to shareholder approval.
Shares for Debt Transaction
Additionally, Record Resources reports that it has agreed to settle an outstanding debt in the aggregate amount of $50,000 owing to a vendor through the issuance of 1,000,000 common shares of the company at a deemed price of $0.05 per common share. The debt was accrued pursuant to the acquisition of the Kenogami East gold property (see August 10, 2022 news release). All common shares will be subject to a four-month and one-day hold period. This debt settlement is subject to TSX Venture Exchange approval.
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.