Silverton Metals Issues Corporate Update and Enters Definitive Agreement
Silverton Metals Issues Corporate Update and
Enters Definitive Agreement
Vancouver, British Columbia--(Newsfile Corp. - August 23, 2022) -
Silverton Metals Corp. (TSXV:
SVTN) (OTCQB: SVTNF) ("Silverton" or the "Company")
announces the following corporate
updates.
Outlook
Silverton's newly appointed executive management has taken steps to further advance the Company by
analyzing acquisition opportunities, appointing seasoned institutional directors, outlining future
exploration programs, and retaining additional service providers.
The Transition
Based on market sentiment and compelling valued opportunities in battery metals, the Company is
pleased to announce that it has entered into a definitive share exchange agreement (the "Agreement") 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.
Terms of Transaction
Under the terms of the Agreement, 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.
The Company anticipates that it will close the transaction in August 2022.
Figure 1: Peny Property claims disposition over Regional Geology
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/3029/134538_900753ab740aab3a_001full.jpg
Exploration Program and Services
The Company has engaged Longford Exploration Services Limited ("Longford") to operate the
upcoming exploration program at the Peny Property in Snow lake, Manitoba. The initial preliminary
exploration program consists of soil sampling, field work, airborne sensing, and data compilation to
further identify mineralization zones.
In conjunction with the upcoming exploration program Silverton announces Longford as the Company's
Qualified Person ("QP") as defined by National Instrument 43-101.
Longford will supervise the work
program and complete preparation of the technical data.
Investor Relations Agreements
Silverton has engaged Daniel Mogil to provide Investor relations and corporate advisory services to
assist with generating Investor awareness. Mr. Mogil has been engaged for a period of one year, subject
to early termination by the parties, for a monthly fee of $2,000.00 and issued 100,000 options
exercisable for five years at a price of $0.15 per share.
Other than the stock options to be granted, Mr.
Mogil does not own, directly or indirectly, any securities of the Company.
Resignations
As the Company shifts its focus evaluating other opportunities, Mr. Peter Born has resigned as
Silverton's "QP". The board would like to thank Mr. Born for his many years of service to the Company
and wishes him well in his future endeavours.
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.
CEO and Director Lowell Kamin stated,
"I'm pleased to provide shareholders a status of Silverton's
recent corporate changes and strategy going forward. The following changes from management to
reviewing other project potentials, are necessary steps to create shareholder value in the future."
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 lihtium 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.
Daniel Mogil, Investor Relations (416) 272-1241
Email:
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,
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