Aranjin Resources Announces Closing of Acquisition of Sharga Copper Project
ARANJIN RESOURCES ANNOUNCES CLOSING OF ACQUISITION OF SHARGA COPPER
PROJECT
ULAANBAATAR, MONGOLIA, September 3, 2021 – Aranjin Resources Ltd. (TSX.V: ARJN) (the “Company”
or “Aranjin Resources”) is pleased to announce the closing of the acquisition of the Sharga Copper Project (the
“Sharga Project” or “Project”). The Company has acquired the Project through the purchase of all of the issued and
outstanding equity interests in the Mongolian company that is the 100% owner of the Sharga Project.
As consideration for the acquisition, the Company paid a total of US$1.5 million in cash in instalments and obligated
issue 30 million common shares in instalments, provided the issuance would not result in the vendor owning over
9.9% of the issued and outstanding common shares of the Company. At the closing, the Company issued 26,653,822
to the vendor representing 9.9% of the issued and outstanding common shares on an undiluted basis. The balance
of 3,346,178 common shares will be issued when the issuance will not result in the vendor owning more than 9.9%
of the issued and outstanding common shares, The vendor is an arm’s length party to the Company. The common
shares issued pursuant to the acquisition are subject to a statutory hold period of four months and one day in
accordance with applicable securities laws.
As previously announced, the cash portion of the purchase price was financed through a $1,814,400 unsecured
convertible debenture financing. The debenture has a term of 12 months and bears interest at a rate of 15% per
annum to be accrued and paid at maturity in cash, or at the option of the Company, in common shares. The principal
amount of the debenture is convertible at anytime time during the term into common shares of the Company at a
price of $0.055 per share.
About the Sharga Project
The following information about the Sharga project is derived from the technical report entitled “ Technical Report
on the Sharga Project, Govi-Altay Aimag, Mongolia” dated July 31, 2021 prepared for the Company by Lamzav
Khurelbaatar (AIPG), an independent Qualified Person as defined in National Instrument 43 -101 – Standards of
Disclosure for Mineral Projects (the “Sharga Report”). The full text of the Sharga Report is available on SEDAR
under Company’s profile, which can be accessed at www.sedar.com.
The Sharga Project is located in the Gobi Altai region of western Mongolia and is comprised of one Mineral
Exploration Licence covering over 9,000 hectares. The project is approximately 1030 km west of Ulaanbaatar and
44 km west of Altay City.
The project is characterized by M etasedimentary Proterozoic rock composed of two distinct metamorphic rock
suites: (i) dominant Riphean (Mesoproterozoic) formations of metasedimentary and metavolcanics rocks exposed
on 80% of the project area developed in Island arc (the Lake zone) environment (ii) subordinate lower Proterozoic
siliceous marble, gneiss and amphibolites of the cratonal (Za vkhan craton) terrain observed in northern part of the
license area. Two terrains have tectonic boundary welded by Khantaishir ophiolitic formation. Mesoproterozoic
rocks are overlain by various younger formations from Devonian to Jurassic age. Mesoproterozoic (below described
as Riphean formations) classified into several formations. Mesoproterozoic rocks consists epidote-chlorite-quartzite
orthoschist (formed from andesite-basalt), quartz -chlorite-sericite and chlorite -sericite orthoschist (formed from
dacite, andesite-dacite and andesite), chlorite -quartz-plagioclase, quartz-chlorite and epidote -chlorite orthoschists
(formed from felsic lava-breccia), a nd variety of schistose volcanic rocks such as rhyolite, dacite, rhyodacite,
andesite-dacite and andesite-basalt. Paleozoic formations represented by middle Devonian Tsagaanshoroot
formation’s red, brownish, pinkish, white colored argillite, aleuvrolite, sandstone, limestone, conglomerate, basalt
and andesite and Jurassic Jargalant formation’s grey, y ellowish, brownish colored conglomerate, gravelite,
sandstone, aleuvrolite, carbonaceous shale, coal layers. Intrusive rocks of lower Devonian Numrug complex consist
two phases and in project area seen rocks only from second phase – biotite, biotite-hornblende granites.
Main alteration and sulphide assemblages in the project indicate possible deposition of volcanic hosted massive
sulphide (VMS) type of Cu -Zn (Au, Ag) mineralization of Kuroko VMS type in the Maikhan Ulaan Uul deposit
and West, East and North Sharga prospects.
Exploration work conducted in 2019 by a prior owner of the Sharga licence, G obi Exploration LLC ,
defined four high grade copper targets and extensive electromagnetic anomalies typical of volcanic hosted massive
sulphide mineralization. Prior work included 74 rock chip samples, five diamond core drill holes totaling 300
metres (with three holes totaling 98 m drilled on a placer gold prospect), 77 drill core samples, 921 line kilometres
of ground magnetics and 40 line kilometres of Transient Electro Magnetic (TEM) surveys.
A single diamond core drill hole was completed into two of the better electromagnetic anomalies . The most
favourable results from the core samples assayed include:
East Sharga Discovery (one drill hole to 172.5 metres depth)
➢ SHD001 - 37.8m at 0.95% copper, 1.37g/t gold and 6.8g/t silver from 132.6 metres
West Sharga Discovery (one drill hole to 50 metres depth)
➢ SHD002 - 11m at 0.15% copper and 0.12g/t gold from 28 metres.
True thickness of intersected mineralization in the West Sharga drill holw is estimated at 6.3m. It is not possible to
determine the true thickness of East Sharga intersection due to vertical dipping of drill hole.
The analytical work was done at SGS-IMME Mongolia laboratory located in Ulaanbataar, Mongolia. The laboratory
Certificate of accreditation (ISO/IEC 17025:2017) expires in 16 December 2024. SGS-IMME Mongolia is an
inspection, verification, testing and certification laboratory and part of SGS Global, which is accredited in many
countries worldwide and independent of the Company, vendor and the property.
The QP recommended further exploration work be completed on th e project in two phases. The first phase
recommendations include:
1. 20 m ground magnetic survey to determine the shape, geological and structural features of the mineralized
massive sulphide and quartz veining zones.
2. TEM survey on the Aguit, North, West and East Sharga to determine sulphide ores distribution in depth.
3. Structural mapping of Mesoproterozoic rocks to reveal ore controlling structures.
4. Rockchip sampling of new mineralized zones revealed during mapping.
The estimated budget for the first phase of the recommend ed work program is US$146,500 and is expected to
commence in September 2021.
Depending on results of the first phase, the Sharga Report recommends following up with 3000m of diamond
drilling in 15 holes.
The scientific and technical information in this press release has reviewed and approved by Lamzav Khurelbaatar
(AIPG), a independent Qualified Person as defined in National Instrument 43 -101 – Standards of Disclosure for
Mineral Projects.
Early Warning Disclosure
Steppe Gold Ltd. (“Steppe”) acquired the $1,814,400 unsecured convertible debenture pursuant to the Sharga
Project financing. Prior to the acquisition of the debenture Steppe did not own or exercise direction or control over
any securities of the Company. Following the acqusiton of the debenture Steppe owned or exercised direction or
control over a $1,814,400 unsecured convertible debenture exercisable into 32,989,090 common shares of the
Company. Assuming conversion of the debenture in full, Steppe would own 32,989,090 common shares or 10.92%
of the issued and outstanding common shares on a partially -diluted basis. The debenture was acquired by Steppe
for investment purposes, and depending on various factors including, without limitat ion, market and other
conditions, increase or decrease its beneficial ownership, control or direction over common shares or other securities
of the Company, through market transactions, private agreements, treasury issuances, exercises of convertible
securities or otherwise. Steppe has also prepared an early warning reporting in accordance with the requirements of
National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues
that will appear under the Company’s profile on www.sedar.com. The foregoing information was provided by
Steppe Gold Ltd.
On behalf of the Board
Matthew Wood
Chairman
Aranjin Resources Ltd.
+976 7732 1914
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