March 16, 2020 – Vancouver, British Columbia – Arbor Metals Corp. (the “Company”) (TSXV:ABR) announces that its wholly-owned subsidiary, Kruger Gold Corp. (“Kruger”), has reached an agreement to expand the scope of its existing right to acquire a seventy-five percent interest in and to the Rakounga Gold Project (the “Project”), located in Burkina Faso, West Africa.
Under the revised terms, Kruger now has the right to acquire up to a one-hundred percent interest in and to the Project, subject only to pre-existing royalty obligations. Kruger has control over operations conducted on the Project, and can acquire a ninety-percent interest in the Project by completing a series of cash payments totaling $1,000,000, and incurring exploration expenditures of at least $1,250,000 in the development of the Project over a five-year term. Following completion of these payments and expenditures, Kruger can acquire the remaining ten-percent interest in the Project by completing a one-time cash payment of $1,000,000.
The Project is subject to a one-percent net smelter returns royalty in favour of an underlying owner, as well as a further one-percent royalty in favour of Sandstorm Gold Ltd. Following acquisition of the Project, Kruger would assume responsibility for these existing royalty obligations.
The Company continues to explore further opportunities for strategic acquisitions in the exploration-stage mineral sector. At this time, the Company does not intend to devote the majority of its resources to the development of the Project in the next twelve months, nor does it expect the Project to represent the majority of its assets going forward.
For further information, contact Mark Ferguson, Chief Executive Officer, at
email@example.com, or visit the Company’s website at www.arbormetalscorp.com.
On behalf of the Board,
Arbor Metals Corp.
Mark Ferguson, Chief Executive Officer