February 7, 2020 – Vancouver, British Columbia – Arbor Metals Corp. (the “Company”) (TSXV:ABR) announces that it has entered into a share purchase agreement, dated effective February 7, 2020, with an arms’-length third-party (the “Vendor”), pursuant to which it will acquire all 5,000,000 common shares in the capital of Kruger Gold Corp. (“Kruger”), a privately-held mineral exploration company. Kruger holds the right to acquire a seventy-five percent interest in and to a mineral exploration permit located in Burkina Faso, West Africa, and commonly referred to as the “Rakounga Project” (the “Project”). Kruger has control over operations conducted on the Project, and can acquire the interest in the Project by completing a series of cash payments and incurring exploration expenditures in the development of the Project.
In consideration for the acquisition of Kruger, the Company has agreed to pay cash consideration of $0.16 per share of Kruger. No securities of the Company will be issued in connection with the acquisition of Kruger, nor are any finders’ fees or commissions owing. Following completion of the acquisition, the Company will assume control of operations conducted on the Project, through Kruger.
The acquisition of Kruger resulted from the Company’s ongoing assessment of strategic acquisition opportunities in the exploration-stage mineral sector. This assessment has focused on projects located in Africa, with a particular focus on Africa, and the Company will look to add additional projects to its portfolio in the near term.
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 Kruger, or the Project, to represent the majority of its assets going forward. The Company is at arms’-length from Kruger, and the Vendor, and the acquisition of Kruger does not constitute a fundamental acquisition under the policies of the TSX Venture Exchange.
The Company also announces that Alex Klenman has been appointed as Director of Corporate Development for the Company, and has transitioned the duties of Chief Executive Officer to Mark Ferguson, effectively immediately.
For further information, contact Mark Ferguson, Chief Executive Officer, at firstname.lastname@example.org.
On behalf of the Board,
Arbor Metals Corp.
Mark Ferguson, Chief Executive Officer