CRES Completes Investments in EcoMine Technologies, Rain City Resources and Other Transactions
CREST RESOURCES INC.
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NEWS RELEASE
CREST RESOURCES COMPLETES INVESTMENTS IN ECOMINE TECHNOLOGIES CORPORATION, RAIN CITY
RESOURCES INC. AND OTHER TRANSACTIONS
Vancouver, B.C. – August 21, 2020 - Crest Resources Inc. (“Crest” or the “Company”) (CSE: CRES) is pleased
to provide an update of corporate transactions that were recently completed.
EcoMine Technologies Corporation
Further to the Company’s news release of April 1, 2020, the Company has arranged financing in the
amount of $500,000 to close the first two tranches of a non -brokered private placement of EcoMine
Technologies Corporation (“EcoMine”), a private British Columbia company that produces targeted bio -
chemical reagents for recovery of metals in the mineral industr y. The first two tranches consisted of
2,000,000 common shares of EcoMine at a price of $0.25 per share. The Company subscribed for
1,000,000 common shares for an investment of $250,000 and Michael Collins (“Collins”), the President,
CEO and a director o f the Company, subscribed for 800,000 common shares for an investment of
$200,000. The Company currently holds a 5% interest in EcoMine and a 6.2% interest with the inclusion
of joint actors.
The Company has the right to invest or place the balance of the EcoMine financing totalling 2,000,000
common shares at a price of $0.25 per share for additional gross proceeds of $500,000 . Subsequent to
closing the first two tranches, the Company will now work together with EcoMine to achieve a public stock
exchange listing for EcoMine by way of IPO, RTO, statutory amalgamation, M&A transaction or similar
transaction.
Rain City Resources Inc.
Further to the Company’s news release of June 23, 2020, the Company has completed the acquisition of
4,100,000 common shares (the “Shares”) of Rain City Resources Inc. (“Rain City”, a junior mineral
exploration company listed on the Canadian Securities Exc hange (the “CSE”)) for total consideration of
$74,000. 3,000,000 of the Shares (the “Escrow Shares”) are subject to an escrow agreement dated
January 24, 2019 among Rain City, National Securities Administrators Ltd. and the Vendors (among other
shareholders). The Company has received the appropriate regulatory approvals to transfer the Escrow
Shares.
The Company now owns and control s a total of 4,100,000 common shares of Rain City representing
approximately 20.59% of the issued and outstanding common sha res based on a total of 19,909,001
common shares outstanding as of August 21, 2020. The Company together with Volatus Capital Corp.
(“Volatus”), a joint actor by reason that the Company owns 25.71% of Volatus and Collins is the President,
CEO and a director of Vola tus, owns and controls 7,100,000 common shares of Rain City representing
35.66% of the issued and outstanding common shares; or 10,100,000 common shares of Rain City
representing 44.09% of the outstanding shares assuming exercise of the 3,000,000 warrants held by
Volatus.
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The Company is entitled to nominate one representative for election as a director of Rain City at each
annual shareholder’s meeting of Rain City, for so long as the Company holds at least 5% of the outstanding
shares of Rain City.
The Shares are acquired in a private transaction from three vendors pursuant to the private agreement
exemption from the formal take -over bid requirements of National Instrument 62 -104, Take-Over Bids
and Issuer Bids, on the basis that the Shares were acquired from less than five vendors at a purchase price
not exceeding 115% of the then market price of the Issuer’s shares.
The Company has acquired the Shares for investment purposes and may acquire additional common
shares and/or other equity, debt or other securities or instruments (collectively, "Securities") of Rain City
in the open market or otherwise, and reserves the right, subject to applicable securities law, to dispose of
any or all of its Securities in the open ma rket or otherwise at any time and from time to time, and to
engage in similar transactions with respect to the Securities, the whole depending on market conditions,
the business and prospects of the Issuer and other relevant factors.
Other Transactions
With reference to the Company’s news release dated November 29, 2019, the Company has repaid the
principal amount of $100,000 owing to Volatus under a loan agreement dated November 20, 2019. With
reference to the Company’s news re lease dated June 5, 2020, the Company has repaid the principal
amount of $150,000 owing to Volatus under a loan agreement dated June 5, 2020. On August 18, 2020,
the Company entered into a loan agreement with Volatus to borrow $50,000 from Volatus for the purpose
of staking mineral claims in Newfoundland and Quebec. The loan will bear interest at 2% per month, is
payable on demand after January 18, 2021 and as further consideration for extending the loan, Volatus
will receive a 5% ownership interest in the property to be staked.
With reference to the Company’s news release dated August 6, 2020, the Company’s p roposed private
sale of 1,038,300 common shares of Mariner Resources Corp. at a price of $0.12 per share will no longer
proceed.
About Crest Resources Inc.
Crest Resources Inc. is a British Columbia company listed on the Canadian Securities Exchange under the
symbol “CRES”. The Company’s principal business activity is the acquisition, exploration and evaluation of
mineral property assets in Canada, Australia and Peru and the investment in mineral exploration
companies and related mining technologies of merit. Crest is committed to creating significant
shareholder value through advancing a high -quality blended portfolio of resource development and
discrete technology plays that build on corporate knowledge and relationships and drive value outside of
the mining cycle, as well as direct investment in undervalued exploration plays at an early stage.
FOR FURTHER INFORMATION CONTACT:
Michael Collins
President and CEO
Crest Resources Inc.
Telephone: 604-681-3170
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Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the
policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this
news release.
Forward-Looking Statements
This news release contains certain forwa rd-looking statements, which relate to future events or future
performance and reflect management’s current expectations and assumptions. Such forward -looking
statements reflect management’s current beliefs and are based on assumptions made by and information
currently available to the Company. Readers are cautioned that these forward -looking statements are
neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results
to differ materially from those expected incl uding, but not limited to, market conditions, availability of
financing, actual results of the Company’s exploration and other activities, environmental risks, future
metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and
permits, and other risks in the mining industry. All the forward -looking statements made in this news
release are qualified by these cautionary statements and those in our continuous disclosure filings
available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof
and the Company does not assume any obligation to update or revise them to reflect new events or
circumstances save as required by applicable law.