VANCOUVER, British Columbia, Dec. 06, 2017 (GLOBE NEWSWIRE) -- Squire Mining Ltd. (“Squire” or the “Company”) (CSE:SQR) announces that due to, inter alia, forest fire closures and wild fires in the area of the Company’s Star property located 40 kilometres south southeast of Nazko in central British Columbia (the “Star Property”), the Company did not carry out exploration work on the Star Property during 2017. In light of same, the owner of the Star Property has indicated his agreement to extend the Company’s option to acquire an undivided 51% interest in the Star Property (the “Option”) for a period of one year and partially defer certain option payments. The Star Property is prospective for Blackwater/Davidson or Round Mtn. style of rhyolite hosted disseminated gold deposits. The property is covered with glacial till and overburden and contains only minor outcrop. It is an early stage exploration target and no mineralization has been discovered to date. Work carried out in 2016 defined a strong Ag, Zn, Cd, Cu MMI soil anomaly with spotty anomalous gold values in the north central part of the claim block. This anomaly extended off of the Star claim block to the north. A 15 cell claim has been added on to the north of the claim block to cover the probable extension of the anomaly. Forty-five cells which did not cover any significant geochemical anomalies were dropped from the southern and eastern parts of the claim block.
Subject to formally amending the Option, the Company is currently contemplating a two phase work program on the Star Property for 2018. Phase 1 planned for May 2018 consists of mechanical trenching of the strongest MMI anomalies, two more MMI geochemical lines on the north of the grid, stream sediment sampling of four creeks in the northern part of the property and detailed prospecting of a small stream in the southern part of the claims that has twice returned anomalous gold values at an estimated cost of $35,000. Contingent upon favorable results from Phase 1, a Phase 2 program consisting of 1,000 metres of diamond drilling to follow up on, among others, targets generated from Phase 1 is contemplated at an estimated cost of $250,000. If warranted, drilling will take place in August or September 2018.
The Company also announces that it has reached an agreement in principle with an arm’s length third party (the “Vendor”) to acquire an 18% minority interest in an exclusive 8 year license (the “License”) to commercially exploit a patented communications technology designed to create fully autonomous wireless communication networks without the need to connect to the internet, cellular or other communications infrastructure. The technology allows nearby wireless devices (such as smart phones, tablets or personal safety devices) to connect directly with each other wirelessly, and transfer data without the necessity for any intermediaries similar to the concept of walkie-talkie radios, but with the capability of smart phones to transfer text, video, voice, pictures and multimedia.
In consideration for a purchase price of $150,000, the Company will acquire an undivided 18% interest in the License as it relates solely to commercial applications for the mining resource industry worldwide (the “Acquisition”). In turn, the Vendor must incur, within one year, a minimum of $50,000 in qualified expenditures to develop mining related uses for the technology, failing which the Company’s interest in the License will automatically increase to 25%. Once the Vendor has incurred its minimum expenditure, the parties will reassess the technology and, if warranted, determine a mutually agreeable plan to further fund and advance its development.
The Acquisition is subject to completion of formal documentation and applicable third party consents and the purchase price for the Acquisition will be funded out of the net proceeds of the Company’s non-brokered private placement announced on November 20, 2017.
The Canadian Securities Exchange accepts no responsibility for the adequacy or accuracy of this release.
For further information contact:
Kevin R. Hanson, Chief Financial Officer
Telephone: (604) 929-0900
Andrew Wilkins, PGeo, a consultant to Squire and a Qualified Person as defined by NI 43-101, Standards of Disclosure for Mineral Projects has approved technical information relating to the Star Property contained in this news release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking information” under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to, the Company’s option agreement for the Star Property and its proposed exploration programs thereon and the Company’s proposed Acquisition of an undivided 18% interest in the License and the funding thereof. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, risks related to mineral exploration, and the actual results of the Company’s exploration programs. In addition, the Acquisition remains subject to the execution and delivery of formal documentation and applicable third party consents. There are no assurances that the Acquisition will be completed by the Company on the terms contemplated above or at all. Actual results and future events could differ materially from those anticipated in such forward looking information. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.