Acquisition of Bakar High Grade Copper Property
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-5616
MK2 VENTURES LTD.
Acquisition of Bakar High Grade Copper Property
Vancouver, B.C., May 2, 2019
May 2, 2019 - MK2 Ventures Ltd. (TSXV/NEX: MK.H; "MK2" or the “Company”) is
pleased to announce that, after an extensive global search, including numerous comprehensive
project reviews, it has entered into a definitive purchase agreement dated May 1, 2019 (the
"Purchase Agreement") with Longford Capital Corp. (the "Vendor") to acquire a 100% ownership
interest in the Bakar high grade copper property located on Northern Vancouver Island, British
Columbia (the "Bakar Property").
The Bakar Property
Based on the geological setting (i.e. within the sub -aerial Karmutsen volcanic and sedimentary
sequence), and the copper -silver mineralogy assemblages and styles, the Bakar Property is
classified as a redbed copper-silver prospect. Redbed copper projects include the Keweenaw and
Porcupine districts of Michigan , the Kennecott deposit in Alaska and the 47zone deposit in the
Northwest Territories.
Highlights of the Bakar Property include the following:
• Seven chip samples from outcrop were recovered during a due diligence site visit in
December 2018 with the highest assay returning 38.7% Cu and 221.0 g/t Ag (Table 1),
associated with semi-massive copper sulphides and native copper.
• During the same site visit mineralization was observed intermittently over at least 30 m
of apparent thickness in a N-NE trending near vertical fault zones as well as in flat lying
replacement bodies. The mineralized trend strikes NW-SE for more than 200 m, and is
open on both ends.
• The property covers an area of 1,349 ha and is located 2 km west from the active logging
village of Holberg and 40 km west from the full-service town of Port Hardy (Figure 1).
• The property is located within a copper -rich geological domain that hosts the previously
producing Island Copper Mine, the Hushamu Deposit, and the Red Dog Deposit.
• Prospective regional geological, geophysical and geochemical features include:
o a major structural suture that runs NW-SE through the property;
o magnetic high features adjacent to an extensive NW-SE magnetic low corridor
that shows a significant flexure on the property;
o NW-SE trending copper in stream sediment anomalies; and
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-5616
o copper in till anomalies that also trend NW-SE.
• No modern exploration has been carried out on the property.
The Company also believes the property and surrounding area has the potential to host
polymetallic porphyry and skarn type deposits.
Garrett Ainsworth, CEO of MK2 , commente d: “ Based on our geological, geochemical, and
geophysical compilation work we believe that the Bakar Property has the potential to possess the
grade and size required of a discovery of importance. An airborne VTEM survey, geological
mapping, and stream se diment sampling will be conducted prior to a decision to drill test any
priority one targets that are generated. No modern exploration work has been completed at Bakar,
and we are keen to carry out this first phase of exploration on a budget that is well within the
Company’s current cash resources.”
Galen McNamara, VP Exploration & Development of MK2, commented: “ The Bakar Property
represents an excellent new British Columbia high-grade prospect with the highest copper grades
I’ve ever seen outcropping at surface. Additionally, the mineralization and geologic setting share
striking similarities to the famous copper districts of Michigan’s Upper Peninsula. Combined with
the fact that much of the area is generally unexplored, we are excited to begin a fully-funded
exploration program almost immediately.”
The Purchase Agreement
Under the terms of the Purchase Agreement, MK2 will complete its purchase of a 100% interest
in the Bakar Property in consideration of the following payments and share issuances to the
Vendor:
• $10,000 cash deposit upon execution of the Purchase Agreement;
• $40,000 cash payment upon closing of the acquisition;
• 500,000 common shares of the Company upon closing with a statutory hold period
expiring 4 months from the date of issue;
• 750,000 common shares of the Company upon closing with a statutory hold period
expiring 6 months from the date of issue;
In addition, the Company will grant the Vendor a 2% NSR at closing of the acquisition subject to
the right of the Company to repurchase 1% of the royalty for a $1,500,000 cash payment, and the
remaining 1% for a $5,000,000 cash payment.
Finally, pursuant to the Purchase Agreement the Company must incur $200,000 in expenditures
on the Bakar Property work commitments within six (6) months of closing of the acquisition, or
the Bakar Property will be forfeited. However, the Company's immediate plans for the property
will account for a material portion of this commitment. In addition, the Company has more than
sufficient cash reserves to complete the balance of expenditure requirements, in due course.
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-5616
Completion of the acquisition is subject to the approval of the TSX Venture Exchange (the
"Exchange") which in turn shall be conditional upon, among other things, preparation and filing
of technical report on the Bakar Property in accordance with National Instrument 43 -101-
Standards of Disclosure for Mineral Projects ("NI 43-101").
No finder's fee is payable by the Company in connection with the proposed transaction and for
the purposes of applicable Exchange policies, the Vendor is not a non -arm’s length party to the
Company.
The acquisition of the Bakar Property by the Company is considered a Fundamental Acquisition
by the Exchange and therefore trading in the common shares of the Company has been halted in
accordance with the policies of the Exchange and will remain halted until such time as required
documentation has been filed with and accepted by the Exchange and permission to resume
trading has been obtained from the Exchange.
Technical Information
All scientific and technical information in this news release has been prepared by or reviewed and
approved by Garrett Ainsworth, PGeo, President and CEO of the Company, and Galen
McNamara, PGeo, Vice President Explora tion and Development of the Company Each of Mr.
Ainsworth and Mr. McNamara is a qualified person for the purposes of NI 43-101.
The chip samples from outcrop reported in this news release were recovered by Mr. Ainsworth
and Mr. McNamara perpendicular to outcropping mineralization across widths of 0.5 to 1.0 m. A
total of seven chip samples were then transported from the Bakar Property to Bureau Veritas
Mineral Laboratories (BVML) in Vancouver, BC for preparation and analysis . Samples were
analyzed for 45 elements with four acid digestion Inductivity Coupled Plasma – Mass
Spectrometry (ICP-MS). Over limit sample values were re-assayed for copper values over 10.0%
using copper assay by classical titration (GC820), and silver values over 200 g/t by four acid
digestion Inductivity Coupled Plasma - Emission Spectroscopy (ICP-ES).
Mr. Ainsworth and Mr. McNamara have not verified any of the information regarding any of the
properties or projects referred to herein other than the Bakar Property and mineralization at those
other properties or projects is not necessarily indicative of mineralization on the Bakar Property.
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-5616
Table 1: Bakar Outcrop Chip Sample Assay Results
Sample
Number
Easting (m)
NAD83
Northing (m)
NAD83
Cu
(wt%)
Ag
(g/t) Sample Description
3267001 566249 5611229 0.8 1.8 Quartz carbonate veining within an altered tuff
with prevalent malachite staining.
3267002 565856 5611130 0.01 <0.10 Possible fault breccia of oxidized medium
grained basalt with intensive limonite staining
3267003 566799 5612393 0.01 <0.10
Intense shearing and extensive limonite
alteration present in a fine-grained basalt with
highly oxidized sulphides.
3267004 566620 5612443 38.7 221.0
Strongly mineralized and oxidized sheared basalt
with tarnished sulphides including bornite,
chalcocite, chalcopyrite and native copper.
3267005 566623 5612447 7.7 6.4
Moderately mineralized and oxidized sheared
basalt with tarnished sulphides including
bornite, chalcocite and malachite
3267006 566627 5612451 34.3 37.7
Strongly mineralized and oxidized sheared basalt
with tarnished sulphides including bornite,
chalcocite, chalcopyrite and malachite
3267007 566620 5612443 10.3 65.7
Moderately mineralized and oxidized sheared
basalt with tarnished sulphides including
bornite, chalcocite, chalcopyrite and native
copper.
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-5616
Figure 1: Location and Regional Compilation for the Bakar Property
On Behalf of the Board of Directors
ON BEHALF OF THE BOARD
“Garrett Ainsworth”
President and Chief Executive Officer
604-628-5616
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-5616
Cautionary Statement Regarding “Forward-Looking” Information.
This news release contains "forward -looking information" within the meaning of applicable
Canadian securities legislation. “Forward -looking information” includes, but is not limited to,
statements with respect to the activities, events or developments that the Company expects or
anticipates will or may occur in the future, including completion of the acquisition of the Bakar
Property and planned exploration activities. Generally, but not always , forward -looking
information and statements can be identified by the use of words such as “plans”, “expects”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or
“believes” or the negative connotation thereof or va riations of such words and phrases or state
that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”,
“occur” or “be achieved” or the negative connation thereof.
Such forward-looking information and statements are based on numerous assumptions, including
among others, that regulatory approval to the Purchase Agreement will be obtained, that general
business and economic conditions will not change in a material adverse manner and that third
party contractors, equipment an d supplies and governmental and other approvals required to
conduct the Company’s planned exploration activities will be available on reasonable terms and
in a timely manner. Although the assumptions made by the Company in providing forward -
looking informa tion or making forward -looking statements are considered reasonable by
management at the time, there can be no assurance that such assumptions will prove to be
accurate.
Forward-looking information and statements also involve known and unknown risks and
uncertainties and other factors, which may cause actual events or results in future periods to differ
materially from any projections of future events or results expressed or implied by such forward-
looking information or statements, including, among other s: that regulatory approval to the
transactions contemplated by the Purchase Agreement will not be obtained such that the
transaction will be completed in accordance with its terms or at all, that the Company will not
complete the required expenditures and that, as a result, the Bakar Property will be forfeited
without any repayment to the Company, negative operating cash flow and dependence on third
party financing, uncertainty of additional financing, no known mineral reserves or resources,
reliance on ke y management and other personnel, potential downturns in economic conditions,
actual results of exploration activities being different than anticipated, changes in exploration
programs based upon results, and risks generally associated with the mineral exploration industry,
environmental risks, changes in laws and regulations, community relations and delays in
obtaining governmental or other approvals.
Although the Company has attempted to identify important factors that could cause actual results
to diff er materially from those contained in the forward -looking information or implied by
forward-looking information, there may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking information and statements
will prove to be accurate, as actual results and future events could differ materially from those
anticipated, estimated or intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information.
918-1030 West Georgia, Vancouver, BC, V6E 2Y3
Telephone: 604-628-5616
The Company undertakes no obligation to update or reissue forward -looking information as a
result of new information or events except as required by applicable securities laws.