Vancouver, British Columbia–(Newsfile Corp. – April 6, 2022) – Flow Metals Corp. (CSE: FWM) (“Flow Metals” or the “Company“) is pleased to announce completion of a staking program at the Sixtymile Yukon gold project. The new Top Thrust block consists of 32 contiguous claims and brings the total size of the project to 334 claims totaling 6,550 Ha (65 km2). The new quartz claims cover the highest producing pay streak of the Little Gold placer mine. The addition of the new claims extends the current gold bearing thrust fault zone coverage to 9 km across 4 placer mines.
The company has completed the Option and Earn-in Agreement (the “Earn-in Agreement”) for the Sixtymile project. The Earn-in Agreement called for Flow Metals to make payments of $120,000 and 1,200,000 company shares to earn a 100% undivided right, title, and interest in and to the Property with the Optionors retaining a 3% NSR.
The Sixtymile project is unique because a portion of a mineralized thrust fault was preserved between normal faults within a negative flower structure relating to a step-over between the Sixtymile-pika fault system. This thrust fault zone is delineated at surface as a gold in soil anomaly that spans the entire length of property and ranges up to 2km wide.
Orogenic gold mineralization at the Sixtymile property is related to regional high-angle Late-Jurassic thrust faults. These brittle-ductile faults correlate to the start of the cordilleran orogeny and can be traced for hundreds of kilometers. The large thrust fault system (D4 deformation) is attributed to gold mineralization in the Sixtymile, Klondike and White Gold districts.
The company has entered into debt settlement agreements (“Settlement Agreements”) to settle outstanding cash payments owed to creditors totaling $82,000 for option payments, management fees and exploration costs. Of the total amount owed, $15,000 is owed to Scott Sheldon, an insider of the Company (the “Insider”) for management fees. The disinterested Directors of the Company have approved the Settlement Agreement with the Insider.
Pursuant to the Settlement Agreements, the Company has issued an aggregate of 2,342,855 Common shares at a deemed price of $0.035 per Common share. Securities issued pursuant to the Settlement Agreements will be subject to a statutory hold period of four months plus a day from issuance in accordance with applicable securities laws.
The debt settlement is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (“MI 61-101”) by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to the Insider does not exceed 25% of its market capitalization.
About Flow Metals
Flow Metals is a western Canadian gold explorer targeting easy access early-stage gold projects in renowned mining districts. See the company slide deck for more information.
Adrian Smith, P.Geo., is the qualified person for the Company as defined in the National Instrument 43-101 and has reviewed the technical information presented within this news release.
For further information, please contact:
Scott Sheldon, President
This press release may include “forward-looking information” (as that term is defined by Canadian securities legislation), concerning the Company’s business. Forward-looking information is based on certain key expectations and assumptions made by the Company’s management, including plans for the exploration and development of its mineral properties. Although the Company believes that such expectations and assumptions are reasonable, investors should not rely unduly on such forward-looking information as the Company can give no assurance, they will prove to be correct. Forward-looking statements in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to publicly update any forward-looking information (whether because of new information, future events, or results, or otherwise) other than as required by applicable securities laws.