iMetal Opts for 100% of the Advanced Kerrs Gold Deposit in Ontario’s Prolific Abitibi Greenstone Gold Belt

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Perth, Australia (ABN Newswire) – Okapi Resources Limited (ASX:OKR) (FRA:26O) (OTCMKTS:OKPRF) is pleased to provide a quarterly development and corporate update.

DEVELOPMENT

Athabasca Projects, Canada

During the quarter, the Company entered into a conditionally binding agreement with ALX Resources Corp (CVE:AL) to acquire a portfolio of six advanced exploration projects in the Athabasca Basin (Athabasca Projects), the premier uranium district high grade in the world.

The Athabasca properties consist of six projects spread over 75 granted mining claims covering approximately 55,000 hectares. Importantly, all projects are located along the margin of the Athabasca Basin or within the Carswell Impact Structure, the depth of the Athabasca Basin unconformity and Precambrian basement is relatively shallow at 300 meters or less and usually closer than 100 yards, making them targets. for unconformity-bound, subsurface-hosted, shallow high-grade uranium deposits.

The Athabasca Basin is home to the largest and richest uranium mines in the world, including Cameco’s McArthur River and Cigar Lake uranium mines. A number of world-class discoveries have been made in the Athabasca Basin in recent years, including the Triple R, Arrow and Hurricane discoveries.

The material terms of the Property Purchase Agreement between Okapi and the Seller, ALX, (Acquisition Agreement) are summarized below:

– Acquisition: Okapi has agreed to purchase and ALX has agreed to sell a 100% undivided legal and beneficial interest in five of the six Athabasca projects and an 80% interest in the sixth Athabasca project, the Middle Lake exploration project, for consideration and subject to the conditions precedent set out below.

– Consideration:

o pay cash to ALX an amount of A$1,000,000;
o issue ALX with A$1,050,000 of ordinary shares fully paid in Okapi Shares calculated using the 10-day volume-weighted average price of the Shares up to the day before that date, being five business days after satisfaction or the waiver of the foregoing conditions; and
o grant ALX a 1.5% net smelter return (NSR) royalty on minerals produced from certain mineral claims being acquired that do not bear existing royalties. Okapi may at any time acquire up to 50% of ALX’s NSR by paying the Seller C$1,000,000.

– Voluntary Escrow: the Consideration Shares will be blocked as follows:

o 33% of the Consideration Shares will be released six months after the Closing Date;
o 33% of the Counterparty Shares will be released on the date which falls nine months after the Closing Date;
o 34% of the Counterparty Shares will be released on the date which is 12 months after the Closing Date.

In addition to the consideration set forth above, the Company has agreed to issue Geonomik Pty Ltd (or its nominee) USD 400,000 worth of fully paid ordinary shares of Okapi (the Paid Shares) in consideration for research and introduction services provided to Okapi from September 14, 2021 in connection with the acquisition of the Athabasca Projects from ALX. The value of Fee Shares will be calculated using the 10 day volume weighted average price of the Shares up to the day prior to Completion. Fee Shares will be issued to Geonomik Pty Ltd (or their nominee) who are not related parties to the Company and subject to voluntary escrow whereby 25% of the Fee Shares are released from escrow after each of three , six, nine and twelve months from completion respectively.

Okapi’s management team worked closely with a highly reputable Saskatchewan-based independent technical services firm to help rank and prioritize properties by geological prospectivity.

Data review and generation of high priority targets is well advanced, and Okapi will outline the exploration strategy going forward on the Athabasca properties upon closing of the transaction at the end of January 2022.

The company will focus its drilling programs on two of the six properties, including Middle Lake and Newnham Lake, which have been identified as having the best exploration potential. ALX, on behalf of Okapi, has already filed a drill permit on the Middle Lake project prior to closing and is in the process of submitting a drill for Newnham Lake.

The Company will also seek to consolidate and expand its positions in the Athabasca Basin through highly accretive acquisitions in 2022.

Tallahassee Uranium Project, Colorado

Okapi owns a 100% interest in mineral rights which cover approximately 7,500 acres in the Tallahassee Creek uranium district in Colorado, United States.

During the quarter, the Company announced a 2012 First Mineral Resource for the Tallahassee Uranium Project estimated at 25.4 Mt at 490 ppm U3O8 for 27.6 million pounds of U3O8 using a cut-off grade of 250ppm.

The Company has also acquired other high-grade uranium deposits located immediately along and adjacent to Okapi’s High Park deposit. The Company added another landholding of 640 acres through the execution of a mining lease with the State of Colorado. The new project area was previously drilled on 30 meter centers with approximately 550 holes drilled over 26,000 m completed in the late 1970s. This new project area has a 2012 JORC resource of 2.48 million pounds of U3O8 at 570 ppm U3O8.

Rattler Uranium Project, Utah

The Rattler Uranium Project comprises ninety-eight (98) unpatented federal Bureau of Land Management (BLM) mining claims totaling approximately 1,960 acres in the La Sal Uranium District.

During the quarter, the Company commenced initial field programs on its Rattler high-grade uranium project with the Okapi exploration team on site to perform an initial review of historic workings, undertake geological mapping to collect information for future programs and undertake rock chip sampling. . Rock chip samples are awaiting dispatch for analysis.

The company is currently in the process of submitting drilling permits to Rattler with the BLM, state and county regulators, and expects to begin drilling in March or April subject to permits and rig availability. .

Lake Johnston and Crackerjack projects

During the quarter, no exploration activity was carried out on Johnston Lake and the Crackerjack project.

Enmore Gold Project, New South Wales

Okapi’s Enmore Gold Project is located approximately 20 km south of the operating Hillgrove Gold Mine (ASX: RVR), where past production exceeds 730,000 ounces of gold.

During the previous quarter, the inaugural drill program intersected significant, thick and shallow gold mineralization with outstanding results received including 174 m at 1.83 g/t gold from surface with this hole, OSSRC06, ending in mineralization, the deepest interval returning to 3m @ 8.86 g/t gold from 171m to EOH.

During the quarter, Okapi shareholders approved the issuance of 620,023 shares at the Annual General Meeting as part of the Stage 1 payment to acquire the Enmore gold project.

BUSINESS

Appointment as CEO

During the quarter, Mr. Andrew Ferrier, a highly experienced mining executive, was appointed as Managing Director.

Mr. Ferrier has over 15 years of management, corporate finance and principal investment experience in the global mining industry. He previously held senior roles for Pacific Road Capital, a large mining-focused private equity firm, where he worked for 12 years in the United States, Canada and Australia. Mr. Ferrier has in-depth knowledge and understanding of the North American uranium space, having been heavily involved in the development, licensing and sale of the Reno Creek ISR uranium project in Wyoming, USA. -United.

Managing Director, Mr. David Nour retired at the Company’s Annual General Meeting.

OTCQB Trading in the United States

Okapi began trading on the OTCQB market on November 22, 2021 in the United States, offering North American investors the opportunity to purchase shares of Okapi as the company executes its strategy to become a new leader in the carbon-free nuclear energy in North America.

The Company’s cross-trade allows Okapi shares to be traded on the OTCQB market under the Company’s stock code OKPRF. No new shares were issued to facilitate this listing. B. Riley Securities acted as the Company’s OTCQB sponsor.

The Company is currently seeking approval for Depository Trust Clearing (DTC) eligibility to facilitate real-time electronic trading in the United States, which will further improve liquidity and trading activity in the United States. .

Cash flow for the quarter

Okapi had cash reserves at the end of the quarter of approximately $4.0 million and investments in listed entities currently valued at approximately $0.45 million.

During the quarter, a total amount of approximately $188,000 (as disclosed in item 6.1 of Schedule 5B) was paid to directors and officers, which includes consulting fees and pension payments . These payments were made in accordance with the directors’ and officers’ contracts.

The Company paid approximately $597,000 (capitalized and expensed) for exploration and evaluation activities, including geological consulting services, drilling and field expenses, assay costs, lease ownership and annual rate payments.

To view the quarterly report with tables, please visit:
https://abnnewswire.net/lnk/8SMBD2PU

About Okapi Resources Ltd:

Okapi Resources Limited (ASX: OKR) is a mineral exploration company focused on the discovery and commercialization of mineral deposits in Australia.

Okapi’s primary objective is to discover and develop mineral resources from its current portfolio. The Company has carefully selected projects with historical operations and excellent results. Okapi has a team of professionals with an exemplary track record of success and with a particular history in Australia.

Okapi is also pursuing a growth strategy that aims to assess and secure new exploration and development opportunities in gold and mineral rich districts.

Source:
Okapi Resources Ltd

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