Serengeti Announces Acquisition of Key Exploration Property Adjacent to Kemess Copper-Gold Development Project
NR: 2018-03
Serengeti Announces Acquisition of Key Exploration Property Adjacent to
Kemess Copper-Gold Development Project
Vancouver, B.C., March 04, 2018, Serengeti Resources Inc. (SIR: TSX-V) ("Serengeti" or "the Company") announces that it
has secured an option and signed a binding agreement to acquire a 100% interest in the Atty property from Finlay Minerals Ltd.
(“Finlay”) and adjacent claims from Electrum Resource Corp (“Electrum”), all located immediately adjacent to Centerra Gold’s
Kemess Underground development and Kemess East advanced exploration project s. Atty covers several high potential
exploration targets including a possible, up-thrown, near surface, fault off set of the adjacent Kemess East deposit. Combined
with the Company’s current UDS property holding, Serengeti now has rights to 6,784 hectares of highly prospective ground . A
significant exploration program is planned on the property for 2018.
Serengeti Pr esident & CEO stated, “The amalgamation of the Atty -ATG with Serengeti’s UDS property creates a large land
package immediately adjacent to a past producer and two current copper -gold deposits and represents significant discovery
potential in the hunt for a new porphyry system in British Columbia”.
The Atty , owned by Finlay and ATG , owned by Electrum claim group s encompass 4,498 hectares interlocked with and
surrounding the northern boundary of Centerra Gold’s Kemess property. Atty and ATG are underexplored considering recent
developments in the Kemess area. There are several highly prospective areas of interest on Atty with the Main Target Area lying
one kilometre north and down-slope from the Kemess East deposit (total Indicated resource of 11 3.1 Mt grading 0.38% Cu, 0.46
g/t Au and 1.94 g/t Ag; NI 43 -101 Technical Report, January 13, 2017). Kemess East is truncated along its eastern boundary by
the Kemess East Offset Fault (KEOF; AuRico Metals Press Release dated November 3 rd, 2015), which strikes toward the north-
northwest through the Atty property. While Kemess East is hidden beneath a thick layer of younger rocks, older Takla Group
rocks which host the mineralized Kemess porphyries are exposed over much of the Atty property.
Finlay completed seven shallow drill holes in 2004 on Atty which intersected variably-altered Takla volcanics and some
monzonitic rocks with alteration and anomalous copper -gold-zinc values from intermittent sampling consistent with the upper
levels of a porphyry system. In late 2007, a deep-penetrating Titan 24 Induced-Polarization (IP) transect, completed between the
drilled area on Atty and Kemess East showed a significant chargeability and resistivity anomaly on the Atty property,
approximately 250 metr es below surface on the east side of the northward projected KEOF. The Atty IP anomalies are
interpreted to represent a possible silicic or potassic altered zone with disseminated sulphides and magnetite possibly
associated with a copper -gold system. Furthermore, results of the recent Geoscience BC Search III high -resolution magnetic
and K/Th radiometric surveys show a strong northwesterly structural trend parallel to the KEOF, and a significant circular
radiometric anomaly centred over the Main Target Area.
Other notable target areas within the combined land package include the Awesome, Kem, Attycelley, Fog and Mess showings ,
all of which display high-level alteration and polymetallic mineralization, characteristics typically associated with porphyry
systems. Furthermore, Serengeti’s 2017 UDS drilling campaign resulted in the identification of a n intense quartz-sericite-pyrite
alteration zone open to the northwest and potentially extending onto the Atty property , now part of the combined land package.
See maps at www.serengetiresources.com/projects/atty
The principal terms of the Atty option with Finlay are as follows: Serengeti may acquire a 100% interest in the property, subject
to a royalty described below , by completing aggregate exploration expenditures of C$12 million over eight years of which
$300,000 is a firm commitment in 2018; making aggregate cash payments of $625,000 over eight years of which $25,000 is due
on signing and m aking $975,000 in payments, payable in cash or shares of Serengeti of which $25,000 value is due on
Exchange approval of the transaction.
Serengeti has a further option to reduce an underlying Net Smelter Returns (NSR) royalty due to Electrum Resource Corp.
(“Electrum”) from 3% to 1.5% , as well as terminating certain buydown rights and areas of interest provisions of an earlier
purchase agreement between the vendors by making aggregate optional payments of $500,000 in staged share payments to
Finlay and Electrum over eight years. Also included in the agreement is a Right of First Refusal (“ROFR”) to Serengeti on any
disposition of the residual NSR on the Atty property by Electrum . Serengeti has also agreed to make a payment to Electrum of
the lesser of $1 million or the value of 500,000 Serengeti shares upon a production decision for the property.
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In a related transaction, Serengeti has also secured an option to acquire a 100% interest in the adjacent ATG claims from
Electrum for staged payments totalling 200,000 shares of Serengeti over four years of which 40,000 shares are due on signing.
Electrum retains a 1.5% NSR on the ATG claims and Serengeti has a ROFR on any disposition of the royalty by Electrum.
These transactions are subject to the acceptance of the TSX Venture Exchange.
ON BEHALF OF THE BOARD
David W. Moore, P. Geo
President, CEO and Director
About Serengeti Resources Inc.
Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of
exploration success. The Company is currently advancing its Kwanika copper -gold project in partnership with POSCO Daewoo
Corporation and exploring its extensive portfolio of properties in north-central British Columbia. A number of these other
projects are available for option or joint venture and additional information can be found on the Company’s website at
www.serengetiresources.com.
Quality Assurance/Quality Control
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set
out in National Instrument 43 -101, and reviewed by the Company’s qualified person, David W. Moore, P. Geo., President and
CEO of Serengeti Resources Inc.
Cautionary Statement
This document contains “forward -looking statements” within the meaning of applicable Canadian securities regulations. All statements other
than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other fu ture plans and
objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will
prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from our exp ectations as well as a comprehensive list of risk factors are disclosed in the
Company’s documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-
looking statements are based on the estimate s and opinions of management on the date the statements are made, and we do not undertake
any obligation to update forward -looking statements should conditions or our estimates change, other than as required by law and readers are
further advised not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Investor Relations: Paradox Public Relations Tel: 514-341-0408 Toll free (in North America) 1-866-460-0408
Email [email protected]
Serengeti Resources Inc. Suite 520 – 800 West Pender St., Vancouver, BC V6C 2V6
Tel: 604-605-1300 Email: [email protected] Website: www.serengetiresources.com