Sokoman Minerals Signs LOI with Campden Hill Holdings Pty Ltd on the Iron Horse Property, Labrador
Sokoman Minerals Signs LOI with Campden Hill Holdings Pty Ltd
on the Iron Horse Property, Labrador
St. John’s, NL, April 4, 2024 – Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF)
(“Sokoman” or the “Company”) is pleased to report that pending TSX Venture approval it has
agreed, pursuant to a Letter of Intent (LOI) with Australian-based, private company Campden Hill
Holdings Pty Ltd (Campden Hill), to provide Campden Hill with an option to purchase the Iron
Horse property (the “Property”) from Sokoman Minerals Corp. Campden Hill is controlled by
an investment group with experience in mineral exploration and investment in multiple
jurisdictions globally, including more than a decade in investing across various commodities in
Canada.
The Property is in the eastern portion of the Labrador Trough, Canada’s most prolific iron ore
producing region. The Property is host to significant iron deposits and has critical mineral
showings of uranium and rare earth elements (REEs).
The Property was staked in 2011 as a joint venture between Golden Dory Resources (now
Sokoman Minerals Corp.) and Metals Creek Resources (“Metals Creek”) to evaluate the uranium
potential of the area. Initial prospecting identified iron ore potential , and in 2012, Sokoman
acquired 100% ownership (subject to net smelter return royalties) from Metals Creek. Diamond
drilling ( eight holes) testing the iron ore potential intersected significant thicknesses of iron
mineralization as taconite, including a 354 m in tercept grading ~28% Fe. Direct Shipping Ore
(DSO) potential was also noted, with assays of 53% Fe from parts of the Property. Following the
extended decline in iron ore prices over the past decade, the iron ore exploration was ended and
the Property was placed on care and maintenance as a non-core asset.
Timothy Froude, P. Geo., President and CEO of Sokoman, states: “We are happy to have
found a quality partner for the Iron Horse project. We look forward to working with Campden
Hill, including offering logistical and technical support, to evaluate and advance the Property. This
transaction allows Sokoman to remain focused on its flagship gold projects at Moosehead and
Fleur de Lys and continue its strategy of finding quality partners to share the risk and reward on
its other holdings. This strategy follows the recent deal for the former Golden Hope Project (now
Killick Lithium) and four other property deals with various partners across Newfoundland.”
James Thompson, Director of Campden Hill, states: “We are pleased to be able to work with
the Sokoman team as we look to further explore and develop the Iron Horse project in conjunction
with our neighbouring land package in Labrador.”
The letter agreement (the “Agreement”) describes the terms upon which Sokoman Minerals Corp.
(the “Optionor” or “Sokoman”) has agreed to provide Campden Hill Holdings Pty Limited (the
“Optionee”), or its permitted transferee, with an option to acquire 100% of the Iron Horse Property
in Labrador, Canada, 23 claims held by Sokoman, more particularly described as follows:
1. Summary of Terms of Option;
Subject to the satisfaction of the terms and conditions of this Agreement, the Optionor agrees to
provide the Optionee with the option to purchase, all right, title and interest in, the Property (the
“Option”), subject to underlying NSR obligations . During the term of this Agreement, all
expenditures and reports required to maintain the Property in good standing will be the
responsibility of the Optionee.
The aggregate price to exercise the Option is three hundred thousand Canadian dollars
(CAD$300,000) with potential for a future bonus payment of up to C AD$500,000 which will be
payable by the Optionee to the Optionor in accordance with Section 1 as follows:
a) CAD$20,000 (Deposit) within 5 days of the date of execution of this Agreement for an
exclusive three-month Due Diligence Period;
b) CAD$100,000 (the “Initial Option Exercise Payment”) in cash or shares (at election of
Optionee) during the three -month period following the date of execution of this
Agreement together with delivery of the Option Notice;
c) CAD$180,000 (“Year 1 Payment”) comprising CAD$30,000 in cash and
CAD$150,000 in cash or shares (at election of the Optionee) on the date that is no later
than twelve months following the payment of the Initial Option Exercise Payment;
d) CAD$500,000 (“Bonus Payment”) in cash or shares (at election of the Optionee) on
the date that a bankable feasibility study is completed.
QP
This news release has been reviewed and approved by Timothy Froude, P.Geo., a "Qualified
Person" under National Instrument 43-101 and President and CEO of Sokoman Minerals Corp.
About Sokoman Minerals Corp.
Sokoman Minerals Corp. is a discovery -oriented company with projects in the province of
Newfoundland and Labrador, Canada. The Company's primary focus is its portfolio of gold
projects; the 100% -owned flagship, advanced -stage Moosehead, Crippleback Lake , and the
district-scale Fleur de Lys project near Baie Verte in northwestern Newfoundland, that is targeting
Dalradian-type orogenic gold mineralization similar to the Curraghinalt and Cavanacaw deposits
in Northern Ireland. The Company entered into a stra tegic alliance with Benton Resources Inc.
through three, large -scale, joint -venture properties including Grey River, Golden Hope, and
Kepenkeck in Newfoundland. Sokoman i s one of the largest landholders in Newfoundland, in
Canada's newest and rapidly emerging gold districts.
In October 2023, Sokoman and Benton completed an agreement with Piedmont Lithium Inc., a
major developer of lithium projects and processing plants in the USA, and exactly the right partner
to have to advance the lithium project. The agreement provides for Piedmont to earn up to 62.5%
of the Killick Lithium Project (formerly Golden Hope project ) by funding up to $12 million in
exploration expenses and issuing $10 million common shares in three stages. The Killick Lithium
Project has been transferred to Killick Lithium Inc. (Killick), a 100%-owned subsidiary of Vinland
Lithium Inc. (Vinland). New ly created Vinland has received $2 million in financing from
Piedmont for a 19.9% interest, with the balance of ownership between Sokoman and Benton.
Sokoman and Benton will continue to operate the exploration efforts at Killick through the earn -
in stages. Sokoman and Benton will retain a royalty of 2% NSR on future production. Piedmont
will have exclusive marketing rights for the promotion and sale of any lithium products produced
from the project on a life-of-mine basis, and the right of first refusal on 100% offtake rights to the
lithium concentrates.
Projects optioned with optionee fully vested:
• East Alder Project optioned to Canterra Minerals Inc (SIC retains 850,000 shares of CTM
plus 1% NSR)
• Startrek Project optioned to Thunder Gold (SIC retains 1,750,000 shares of TGOL plus 1%
NSR)
Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of
mineralization hosted on the Company's property.
For more information, please contact:
Timothy Froude, P.Geo., President & CEO
T: 709-765-1726
Cathy Hume, VP Corporate Development, Director
T: 416-868-1079 x 251
Website: www.sokomanmineralscorp.com
Twitter: @SokomanMinerals
Facebook: @SokomanMinerals
LinkedIn: @SokomanMineralsCorp
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.
Investors are cautioned that trading in the securities of the Corporation should be considered
highly speculative. Except for historical information contained herein, this news release
contains forward-looking statements that involve risks and uncertainties. Actual results may
differ materially. Sokoman Minerals Corp. will not update these forward-looking statements to
reflect events or circumstances after the date hereof. More detailed information about potential
factors that could affect financial results is included in the documents filed from time to time
with the Canadian securities regulatory authorities by Sokoman Minerals Corp.