Sentinel Resources to Acquire Controlling Interest in Hub City Minerals
T - 604.689.7422 F - 604.689.7442 204 – 998 Harbourside Drive North Vancouver, BC V7P 3T2
SENTINEL RESOURCES TO ACQUIRE CONTROLLING INTEREST IN
HUB CITY MINERALS
Vancouver, British Columbia, September 1 , 202 1 – Sentinel Resources Corp. (CSE:
SNL)(US OTC PINK: SNLRF) (“Sentinel” or the “Company ”) announces that it has entered
into a share purchase agreement (the “Agreement”), dated effective August 27, 2021, with Hub
City Minerals Corp. (“Hub City”) and the shareholders of Hub City whereby Sentinel will acquire
67% of the issued and outstanding shares and share purchase warrants of Hub City. Hub City,
through a 75% interest in Hub City Lithium Inc., owns a series of lithium focused permits in
Saskatchewan.
Highlights of Hub City Lithium:
• Hub City holds 48,457 hectares (119,739 acres) of Subsurface Cr own Mineral
Dispositions in Saskatchewan, with the focus on potential lithium resource prospects,
including:
• Twenty-one (21) lithium brine focused permits in four main distinct geographical
locations in Saskatchewan representing 48,457 hectares (the “Li-Brine Properties”)
o Greater Mansur Permit Area consisting of five main blocks totaling 13,093
hectares, located between 10 to 50 km east of Weyburn, Saskatchewan.
o Greater Tyvan Permit Area consisting of four permit blocks totaling 5,683
hectares, located 85 km south of Regina, Saskatchewan.
o Greater Huntoon East Permit area consisting of seven permit blocks totaling
20,923 hectares.
o Coleville Permit consisting of four permit bloc ks totaling 8,496 hectares,
located 30 km northwest of Kindersley, Saskatchewan.
• Exploration will target lithium brine potential at the Devonian, Silurian and
Ordovician aged aquifers that range in depth from 1,100 m to 2,500 m below surface.
Sentinel President Rob Gamley , commented, “We are really excited to work with the Hub City
team to explore and develop this highly prospective land package. Over the past several months
the Hub City team has raised in excess of $1,500,000, secured almost 120,000 acres and completed
an initial test well. The Sentinel team looks forward to working with the Hub City team as we
work toward identifying and developing a significant lithium project. The partnership is a fantastic
addition to Sentinel’s asset base. The Sentinel board and management team feel that the addition
of Canadian lithium projects to the Company’s portfolio provides valuable diversification both in
jurisdiction and metal type.”
T - 604.689.7422 F - 604.689.7442 204 – 998 Harbourside Drive North Vancouver, BC V7P 3T2
The Li-Brine Properties
The Li-Brine Properties consist of twenty-one (21) permits totalling 48,457 hectares in Williston
basin of southern Saskatchewan (see Figure 1). The permits provide the holder with the exclusive
right to explore for and develop any subsurface minerals (including brines) from the land.
Figure 1. Location of the Li-Brine Properties
Over the last 60 years, there has been extensive oil and gas drilling by energy companies in the
Williston basin. Sentinel’s primary targets for lithium enriched brines is sourced from Devonian
aged carbonates of the Duperow formation, with a secondary target being the Ordovician aged
carbonates of the Red River formation. Within the Williston Basin these Devonian aged and older
reservoirs are stratigraphically below most of the oil development, however there are several areas
within Saskatchewan where there has been oil exploration and development of these deeper
targets. The current permits have existing wells that penetrate or produce from the Duperow and
Red River Formations in all three prospect areas. This allows for the use of publicly available well
information to map zones of interest.
The lithium geology on the Mansur, Tyvan and Col eville prospects are focused on the regionally
extensive Devonian aged Duperow and Souris River carbonate sequences that were deposited within
T - 604.689.7422 F - 604.689.7442 204 – 998 Harbourside Drive North Vancouver, BC V7P 3T2
a shallow water and commonly evaporitic environment at the end of a long succession of evaporitic
deposition. Thi s depositional history appears favorable for leaching of Li from aquifers, as brines
concentrate over time. Throughout the Duperow and Souris River formation there are multiple
shallowing upward sequences that control deposition and separate the porous lim estones and
dolostones into several regionally extensive layers which may be hydrodynamically isolated.
Figure 2. Williston Basin Deposition with representative unconformities and thickness
Over the last several years in Saskatchewan there have been hundreds of brine samples collected
from a wide range of formations with the goal of evaluating mineral brine concentrations including
lithium. Most of the initial work has been carried out by the Saskatchewan government or
University researchers, and all the public data has been published in the form of technical papers.
The tests in the Devonian and Ordovician aged formations contained anomalously higher
concentrations of lithium within the brines. Of particular interest is the Duperow formation tests
T - 604.689.7422 F - 604.689.7442 204 – 998 Harbourside Drive North Vancouver, BC V7P 3T2
near the Li-Brine Properties that have had lithium concentration tests ranging from 55 mg/L up to
190 mg/L from regionally extensive aquifers. As a secondary target the Red River formation also
has higher lithium concentrations of 47 mg/L up to 112 mg/L in the Tyvan and Mansur Regions.
While no Duperow lithium concentration tests have yet been completed directly on the Li -Brine
Properties, preliminary mapping suggests the aquifers with offset high concentration tests extend
from the test sites onto the permi t blocks of the Li -Brine Properties. Given this information, the
potential for lithium rich brines within the permit areas exists, however further testing is required
to validate the Li concentrations of the prospective aquifers within the permit areas.
Hub City Lithium recently completed its initial downhole well test. It has test ed 8 lithium brines
zones and samples have been sent for testing. Results from these tests are expected in the coming
2 – 3 weeks.
Terms of Transaction
Under the terms of the Agreement, Sentinel has agreed to acquire 14,070,000 Hub City Units
(representing 67% of the issued and outstanding units of Hub City (the “Hub City Units”) in
exchange for the issuance of 14,070,000 Sentinel units (each, “Sentinel Unit”) to the shareholders
of the Hub City Units. Each Sentinel Unit will consist of one common share of Sentinel and one
share purchase warrant, with each share purchase warrant entitling the holder to acquire one
additional common share of Sentinel under the existing terms of the outstanding share purchase
warrants of Hub City.
A portion of the Sentinel Units issued under the transaction will be subject to the following
voluntary restrictions on resale: (i) 2,814,000 Sentinel Units will be subject to a hold pe riod
expiring one month after closing, (ii) 2,814,000 Sentinel Units will be subject to a hold period
expiring two months after closing; ( iii) 2,814,000 Sentinel Units will be subject to a hold period
expiring three months after closing; (iv) 2,814,000 Sentinel Units will be subject to a hold period
expiring four months after closing.
All conditions to completion of the transaction have been satisfied and closing will occur on
September 2, 2021.
The Company is at arms -length from Hub City and its shareholders. The transaction neither
constitutes a fundamental change nor a change of business for the Company, nor has it resulted in
a change of control of the Company within the meaning applicable securities laws and the policies
of the Canadian Securities Exchange. No finders’ fees or commissions are payable in connection
with completion of the transaction.
T - 604.689.7422 F - 604.689.7442 204 – 998 Harbourside Drive North Vancouver, BC V7P 3T2
Qualified Person
The technical content of this news release has been reviewed and approved by Mr. Greg Bronson,
P. Geo, a qualified person for the purpose of National Instrument 43-101.
About Sentinel Resources
Sentinel Resources is a Canadian -based exploration company focused on the acquisition and
exploration of mineral projects with significant development potential. Its current portfolio
includes precious metals projects located in New South Wales, Australia. The Company’s guiding
principles are based on acquiring strategic exploration properties in mining-friendly jurisdictions
with historical mining industries, low-cost of entry or acquisition, and easy access to infrastructure
to minimize capital and operational costs in explorational periods. For more information, please
go to the Company’s website at www.sentinelexp.com.
Corporate Inquiries:
Rob Gamley, President & CEO
Company Website: www.sentinelexp.com
Phone: 604-689-7422
Email: [email protected]
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 gu arantees of future performance.
Sentinel 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 Sentinel's
control. Such factors include, among other things: risks and uncertainties relating to Sentinel's
limited operating history, ability to obtain sufficient financing to carry out its exploration and
development objectives on its mineral properties, obtaining the necessary permits to carry out its
activities 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, Sentinel undertakes no obligation to publicly
update or revise forward-looking information.
T - 604.689.7422 F - 604.689.7442 204 – 998 Harbourside Drive North Vancouver, BC V7P 3T2
Neither the Canadian Securities Exchange (“CSE”) nor its Regulation Services Provider (as that
term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of
this news release.