Huntington Signs Letter of Intent to Acquire the El Grande Project in Nayarit State, Mexico
Huntington Signs Letter of Intent to Acquire the El Grande Project
in Nayarit State, Mexico
Calgary, Alberta, October 5, 2021 – Huntington Exploration Inc. (TSXV: HEI) (“Huntington" or the
“Company”) announces that it signed a binding letter of intent to acquire a 100% interest in Lago De Oro
SA de CV, a wholly-owned Mexican subsidiary of the Delaware-based Lago de Oro LLP.
Lago De Oro SA de CV holds title to the 537 sq. km El Grande exploration property located near the town
of Acaponeta in the State of Nayarit, Mexico, approximately 150 km southeast of the resort city of Mazatlán
in the State of Sinaloa.
The El Grande property is located in the southern portion of the 700 km-long Sierra Madre Metalogenic
province that hosts significant gold, silver and base-metal deposits and producing mines. The project covers
large areas of altered volcanic rocks and is being targeted for its copper, gold and silver potential.
Huntington intends to initiate its regional exploration program upon closing of the transaction, about the end
of November.
Subject to TSX Venture Exchange approval and the completion of due diligence, Huntington has agreed to
pay to Lago De Oro LLP the following; 1) US$500,000 cash, 2) 4.0 million shares of Huntington, at a price
per share as determined at the close of the proposed acquisition, 3) a Net Smelter Return capped at 2%,
and 4) milestone bonus payments of 2 shares per ounce of gold equivalent precious metal that is added to
a geologically modeled resource from one or more deposits within El Grande, which are in turn, contained
within a pit or stope constrained mine model. The first issuance will be made after an initial threshold of
500,000 gold equivalent ounces is modeled in an independent resource estimate.
Appointment of a Strategic Advisor to the Board
Huntington is also pleased to announce the appointment of Mr. Bruce A Pate as a Strategic Advisor to the
Board. Mr. Pate is the General Partner of Pate Capital Partners LP, which he founded in 2004 to invest in
publicly traded companies with an emphasis in the energy- and resource-related sectors.
Prior to founding Pate Capital Partners LP, Mr. Pate spent more than 20 years at Morgan Stanley & Co. as
a principal of the firm, where he managed fixed income and equity portfolios for entrepreneurs, foundations,
and corporations. Mr. Pate has served on the Board of Directors of ClearSign Technologies Inc. since 2019,
where he is currently Chairman of the Governance/Nomination committee while also sitting on the Audit
and Compensation Committees.
Mr. Pate will be granted 150,000 options.
About Huntington
Huntington Exploration Inc. is a well-funded minerals exploration company focused on exploring early-stage
precious metals properties in Canada and Mexico. The Company strives to be an environmentally
responsible mineral exploration company dedicated to the application of good geoscience through
compliance with the E3 Program developed by the PDAC. Huntington’s flagship asset is the Quartz Lake
Property, located approximately 50 km east of Red Lake, adjacent to Prosper Gold’s Golden Sidewalk
Project. The Quartz Lake Property has many similar geological features of other successful exploration
plays in the region (i.e. Great Bear’s Dixie Lake Project and Prosper’s Golden Sidewalk), where gold
mineralization has been found along a formational magnetic signature that parallels the regional Balmer –
Narrow Lake Assemblage (Confederation Group) unconformity. Elsewhere in northwestern Ontario,
Huntington owns 17 patented mining claims that are estimated to be within 500 m and on strike with the
historic Lingman Lake gold deposit.
For more information, please visit www.HuntingtonExploration.ca.
ON BEHALF OF THE BOARD OF HUNTINGTON EXPLORATION INC.
“Bryan Wilson”
President & CEO
416-543-9945
Jordan Shafi, Account Manager
CHF Capital Markets
Tel: 416-868-1079 x 233
Email: [email protected]
Note: Our website re-development is ongoing with an expected release during Q4 2021.
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.
Forward-Looking Information: This news release contains “forward-looking information” within the meaning of
applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are
forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking
terminology such as “plans”, “ expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and
phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or
might occur or be achieved. In particular, this news release contains forward-looking information regarding: the
proposed acquisition and completion of the proposed acquisition referred to in this release. There can be no assurance
that such forward-looking information will prove to be accurate, and actual results and future events could differ
materially from those anticipated in such forward -looking information. This forward-looking information reflects
Huntington’s current beliefs and is based on information currently available to Huntington and on assumptions
Huntington believes are reasonable. These assumptions include but are not limited to: TSXV acceptance of the
proposed acquisition; satisfaction of the conditions to the completion of the proposed acquisition; market acceptance
and approvals, including TSXV acceptance, the satisfactory completion of due diligence and all conditions precedent;
and the anticipated closing date for the proposed acquisition. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance , or
achievements of Huntington to be materially different from those expressed or implied by such forward -looking
information. Such risks and other factors may include, but are not limited to: general business, economic, competitive,
political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to
receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation,
including environmental legislation, affecting Huntington; the timing and availability of external financing on acceptable
terms; and lack of qualified, skilled labor or loss of key individuals. A description of additional assumptions used to
develop such forward-looking information and a description of additional risk factors that may cause actual results to
differ materially from forward- looking information can be found in Huntington’s disclosure documents on the SEDAR
website at www.sedar.com. Although Huntington has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not
exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be
no assurance that the plans, intentions, or expectations upon which they are placed will occur. Forward -looking
information contained in this news release is expressly qualified by this cautionary statement. The forward-looking
information contained in this news release represents the expectations of Huntington as of the date of this news release
and, accordingly, is subject to change after such date. However, Huntington expressly 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 expressly required by applicable securities law.