VANCOUVER, B.C., July 19,
2022 /CNW/ -- Silverton Metals Corp. (TSX-V: SVTN)
(OTCQB: SVTNF) ("Silverton" or the
"Company") is pleased to announce that it has entered into a letter
of intent (the "Letter of Intent") to acquire all of the issued and
outstanding shares of The Wholesome Organic Limited (the "WOL").
WOL owns the Peny Property (the "Property"), comprised of fifteen
mineral claims totaling 3,204 hectares in the Snow Lake district in Manitoba, Canada.
Peny Property
The Peny Property is located approximately 25 kilometres
north-east of the town of Snow Lake,
Manitoba. The Peny Property is prospective for Lithium
Pegmatite and Volcanic Massive Sulphide ("VMS") style
mineralization which is known to occur in the local area.
The Property encompasses rocks belonging to the Churchill Province and comprises metamorphic
and metasedimentary rocks; predominantly Felsic and Arkosic
Gniess's including arkose, arenite, and quartzite-derived gneiss
and migmatite belonging to the Sickle Group, Missi Group and Sickle
Metamorphic Suite. The Property is located adjacent to the formally
producing Osborne Lake VMS Mine previously operated by the Hudson
Bay Mining and Smelting Co, where historical workers report
wallrock are intruded by coarse-grained, sheared pegmatite. While
the limited historical work on the property indicates that
mineralization may include copper and zinc, the Company intends to
refocus the asset on the exploration of lithium, which has proven
successful at neighbouring sites.
"Although we have significant silver assets in Mexico, we believe that diversifying our
project portfolio to lithium-focused assets in Canada will add significant long term value
for shareholders," said Lowell
Kamin, Chief Executive Officer and Director of Silverton. "We believe the demand for battery
technology will test the limits of metals supply and drive a
long-term structural shift in the lithium market – an opportunity
we want to capture and integrate into our business strategy."
Terms of Transaction
Under the terms of the Letter of Intent, the Company has agreed
to acquire all of the issued and outstanding shares of WOL and, in
consideration of which, the Company will issue to the WOL
shareholders a total of 13,000,000 common shares (the
"Consideration Shares") at a deemed price of $0.095 per share for total consideration of
$1,235,000. Each of the Company and
WOL have agreed to enter into a definitive agreement no later than
July 31, 2022.
Closing of the acquisition is subject to the parties completing
due diligence, the entering into a definitive agreement and the
acceptance of the TSX Venture Exchange.
Qualified Person
The scientific and technical information contained in this news
release has been reviewed and approved by Luke van der Meer, P. Geo., a Qualified Person
for the purpose of NI 43-101.
About Silverton Metals Corp.
Silverton Metals Corp. is a Canadian company focused on the
exploration and development of quality silver projects. The company
holds a 100% interest in three significant silver assets in
Mexico – Pluton, in Durango,
Peñasco Quemado in Sonora and La
Frazada in Nayarit. Silverton management and board have
experience identifying and evaluating acquisition targets and
exploration prospects. The company intends to build a strong
portfolio of silver and gold-silver projects to drive future growth
by exploration success and from later stage projects with
production potential. To achieve this growth the Silverton business plan calls for a dynamic
combination of development of its existing properties,
acquisitions, and partnerships.
Contact:
Silverton Metals Corp.
Lowell Kamin, Chief Executive
Officer and Director
(416) 272-1241
investors@silvertonmetals.ca
https://silvertonmetals.ca
Forward-Looking Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions, and expectations. They are
not guarantees of future performance. Silverton cautions that all forward looking
statements are inherently uncertain, and that actual performance
may be affected by a number of material factors, many of which are
beyond Silverton's control. Such
factors include, among other things: risks and uncertainties
relating to Silverton's limited
operating history and the need to comply with environmental and
governmental regulations. Accordingly, actual, and future events,
conditions and results may differ materially from the estimates,
beliefs, intentions, and expectations expressed or implied in the
forward-looking information. Except as required under applicable
securities legislation, Silverton
undertakes no obligation to publicly update or revise
forward-looking information.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
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SOURCE Silverton Metals Corp.
