SKRR Exploration Inc. enters into Acquisition Agreement to Acquire the Watts Lake Zinc Claims in Saskatchewan
SKRR Exploration Inc. enters into Acquisition Agreement to Acquire
the Watts Lake Zinc Claims in Saskatchewan
News Release - Vancouver, British Columbia – November 5, 2021: SKRR Exploration Inc. (TSXV:
SKRR) (FRE: B04Q) (“SKRR” or the “Company”) is pleased to announce it has entered into a non-
arm’s length acquisition agreement dated November 4, 2021 (the “Acquisition Agreement”) to acquire
a 100% interest in Edge Geological Consulting Inc.’s (“Edge”) Watts Lake zinc property (the
“Property”) consisting of twenty-four (24) mineral claims compromising a total of 13,708.109 hectares.
The Property covers multiple, parallel basement conductive corridors, including the ~14km long Borys
Lake Corridor, which hosts the historic Borys Lake lead -zinc deposit as well as numerous other
mineralized occurrences. Watts Lake is located approximately 65 km north-east of the town of La Ronge,
Saskatchewan and 20km northwest of the community of Missinipe, SK. The well -maintained gravel
Provincial Highway 102 runs north from La Ronge, through Missinipe to Reindeer Lake and its closest
point is approximately 12.5km east of the property.
Sherman Dahl, CEO of SKRR states:
"Why Zinc? Like copper, zinc has a range of applications across many industries, including
agriculture, construction, pharmaceuticals, and transportation. Approximately half of the
world’s supply is used in corrosion -proof galvanized steel, which is widel y used in
infrastructure projects. Zinc sheeting is used for cladding, roofing, and gutter systems. Zinc-
coated steel is widely used for building framing and bridge construction, and in reinforcing
bar in concrete structures. Because of its anti -corrosive properties, zinc can make a crucial
contribution to infrastructure projects – and in recent years, there has been a steady demand
for galvanized steel from China. In addition, with the chemistries that zinc brings into play …
this is a perfect fit for zinc batteries and one that we see significant growth in going forward.
The electric vehicle demand is fueling demand for all metals including Zinc and Nickel. Watts
Lake fits in with our Father Lake Nickel project and our well-advanced gold properties in the
Trans Hudson Corridor - the home of giants SSR mining and Hudbay Minerals.
SKRR is on a mission to build a world class base metal and precious metal company based
on the outstanding mineralization in Saskatchewan. SKRR will be a leader with a diversified
portfolio of high-quality long-life assets. The SKRR team has done an incredible job over the
last few years of drilling, exploring, discovering, and positioning the company for success."
Terms of the Acquisition Agreements
Under the terms of the Acquisition Agreement, SKRR will acquire a 100% interest in the Property by
making an initial cash payment of CAD$ 62,500 and issuing 50,000 common shares of SKRR to Edge
upon TSX Venture Exchange (the “TSXV”) approval of the Acquisition Agreement. The Acquisition
Agreement provides for a 2% net smelter return royalty in favour of Edge (subject to a buy down to 1%
for CAD$1,000,000). SKRR will also make an additional cash payment of $62,500 to Edge within 12 -
months of TSXV approval of the Acquisition Agreement.
The Acquisition Agreement is subject to acceptance by the TSX V. All securities issued pursuant to the
Acquisition Agreement are subject to a four month hold period from the closing date in accordance with
applicable securities laws and the policies of the TSXV.
The acquisition agreement with Edge is not an “Arm’s Length Transaction” as such term is defined in the
Exchange’s Policy 1.1 and therefore constituted a “related party transaction” as such term is defined in
Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. Ross
McElroy is a director of SKRR and is also a director of Edge. In respect of the requirements of MI 61 -
101 and Exchange Policy 5.9, the Company will rely on the exemptions from the formal valuation and
minority approval required under MI 61 -101. The Company is exempt from the formal valuation
requirement of MI 61-101 in reliance on section 5.5(b) as no securities of the Company are listed on the
specified markets outlined therein. Additionally, the Company is exempt from minority shareholder
approval of MI 61 -101 in reliance o n section 5.7(1)(a) (fair market value not more than 25% of the
Company’s market capitalization).
Watts Lake Property Highlights
• World-Class Jurisdiction : Saskatchewan is consistently ranked globally as a top mining
investment jurisdiction
• Large Land Package in a Favorable Geological Setting: Watts Lake is a large contiguous land
package consisting of 13,708 ha in the established, deposit endowed La Ronge Domain, of
Saskatchewan. The project is strategically located near important infrastructure, including within
20km of major provincial highway network.
• Historic Borys Lake Lead-Zinc Zones: The Borys Lake Corridor is anchored by the shallow
depth historic Borys Lake lead-zinc deposit, including all four known drill hole delineated zones;
Mac, Main, Will A/Will B and Sam zones. The main zone was interpreted to have an
approximate strike length of 975 m and widths varying from 5.3 to 19.5 m with the zinc to
lead ratio being approximately 10:1). Mineralization is open along strike and at depth.
• Strong Blue -Sky Potential: Watts Lake Project area covers multiple, parallel basement
conductive corridors, identified by a 2008 airborne versatile time -domain electromag netic
(VTEM) geophysical survey, including the entire approximately 14km -long Borys Lake
conductive corridor, as well as significant portions of parallel corridors. The conductive corridors
have numerous drill intersected and surface identified mineralize d occurrences of zinc, copper,
and silver as well as anomalous gold, nickel and cobalt.
Geologic Particulars of the Property
The Watts Lake property has been explored sporadically since the mid 50’s by several exploration
companies. The Borys Lake depos it occurs within northeast trending, steep northwesterly dipping
supracrustal rocks at the eastern margin of the Crew Lake Belt of the La Ronge Domain. These rocks
comprise mainly biotitic gneisses that are variably migmatized. The deposit lies on the northwestern limb
of a major antiform within an approximately conformable, northeast trending biotite-chlorite shear zone.
Structurally controlled mineralization on the property consists of a suite of sulphide minerals including
pyrrhotite, sphalerite, chalcop yrite, pyrite, and galena . Gold and silver are also present. The
sulphides occur as fine dissemination, isolated blebs, and rare veinlets. Locally, massive sphalerite-galena
mineralization occurs within quartz-rich veins and lenses, which may represent silicification.
The Borys Lake Main zone was the focus for Husky Oil Operations Ltd. in 1972. Husky was sufficiently
encouraged with results that they prepared an internal report for the initial tonnage and grade estimate of
the Main zone of the Borys Lake deposit “Preliminary Calculation of Grade and Tonnage Borys Lake –
Lead-Zinc Prospect for Husky Oil Operations Ltd.” . Husky’s estimates are based on limited drill
information and only provide an inventory of the metal distribution within that portion of the zone tested
by 10 holes and to a vertical depth of 30m below surface . The Main zone was interpreted to have an
approximate strike length of 975 m and widths varying from 5.3 to 19.5 m. In a report titled “Preliminary
Calculation of Grade and Tonnage Borys Lake – Lead-Zinc Prospect for Husky Oil Operations Ltd.”,
dated May 1972, the author reported that using all grades without applying a cut-off, and using a cut-off
vertical depth of 30 m, the deposit was calculated to contain 1,336,500 tons grading 1.91% combined
zinc and lead (the zinc to lead ratio is approximately 10:1). The deposit calculations are considered to be
relevant but are historical. The report does not make reference to the estimate being an inferred mineral
resource, indicated mineral resource nor measured mineral resource nor does it make reference to being
a probable mineral reserve or proven mineral reserve as per NI 43 -101 Standards of Disclosure for
Mineral Projects. This estimate is believed to be the most current available. A qualified person has not
done sufficient work to classify the historical estimate as current mineral resources or current mineral
reserves and SKRR is not treating the historical estimate as current mineral resources or current mineral
reserves. SKRR has not verified the calculations or the assay results supporting them, nor has SKRR
done the drilling and sampling necessary to verify the classification of the resource or reserve. The Watts
Lake package includes all four mineralized zones of the Borys Lake deposit: Main, Mac, Cam and Will
A/B zones. Although not part of the grade and tonnage estimate, other significant minerals are noted in
the historic literature filed on this property, including anomalous silver and gold.
The above results were summarized from the SMDI descriptions and assessment reports filed with the
Saskatchewan government. SKRR cautions that historical results were collected and reported by past
operators and have not been verified nor confirmed by a Qualified Person. Further work (inc luding
drilling) is required by SKRR in order to verify the historical work on the Property. Management cautions
that past results or discoveries on proximate land are not necessarily indicative of the results that may be
achieved on the Property.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved
by Ross McElroy P.Geo , a director of the Company and a “Qualified Person” as defined in National
Instrument 43 -101 – Standards of Disclosure for Mineral Projects . Mr. McElroy verified the data
disclosed which includes a review of the sampling, analytical and test data underlyi ng the information
and opinions contained therein.
About SKRR Exploration Inc.:
SKRR is a Canadian-based precious metal explorer with properties in Saskatchewan - one of the world’s
highest ranked mining jurisdictions. The primary exploration focus is on the Trans-Hudson Corridor in
Saskatchewan in search of world class precious metal deposits. The Trans-Hudson Orogen - although
extremely well known in geological terms has been significantly under -explored in
Saskatchewan. SKRR is committed to all sta keholders including shareholders, all its partners and the
environment in which it operates.
ON BEHALF OF THE BOARD
Sherman Dahl
President & CEO
Tel: 250-558-8340
Neither the 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 or statements” within the meaning of applicable securities laws,
which may include, without limitation, statements that address the TSX Venture Exchange approval of the Acquisition
Agreement, the Company conducting exploration work on the Property, other statements relating to the technical,
financial and business prospects of the Company, its projects and other matters. All statements in this news release, other
than statements of historical facts, that address events or developments that the Compa ny expects to occur, are forward-
looking statements. Although the Company believes the expectations expressed in such forward -looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ
materially from those in the forward -looking statements. Such statements and information are based on numerous
assumptions regarding present and future business strategies and the environment in which the Company will operate in
the future, including the price of metals, the ability to achieve its goals, that general business and economic conditions
will not change in a material adverse manner, that financing will be available if and when needed and on reasonable
terms. Such forward-looking information reflects the Company’s views with respect to future events and is subject to
risks, uncertainties and assumptions, including the risks and uncertainties relating to the interpretation of exploration
results, risks related to the inherent uncertain ty of exploration and cost estimates and the potential for unexpected costs
and expenses, including those filed under the Company’s profile on SEDAR at www.sedar.com. Factors that could cause
actual results to differ materially from those in forward looking statements include, but are not limited to, continued
availability of capital and financing and general economic, market or business conditions, adverse weather or climate
conditions, equipment failures, failure to maintain all necessary government permits, approvals and authorizations,
decrease in the price of metals, the impact of Covid-19 or other viruses and diseases on the Company’s ability to operate,
failure to maintain community acceptance (including First Nations), increase in costs, litigation, and failure of
counterparties to perform their contractual obligations. The Company does not undertake to update forward‐looking
statements or forward‐looking information, except as required by law.