Tarku Resources Ltd. [TKU-TSXV; TRKUF-OTCQB; 7Tk-FSE] announced that it has entered into a new agreement which provides the company with immediate 100% ownership of the Silver Strike Project, in the Tombstone area, Arizona from EXLA Resources [EXLA-OTC].
On February 1, 2022, EXLA announced that it had entered into a binding agreement to purchase through a combination of cash and stock all the rights, interests and future benefits currently held by Mansfield Martin and associated parties in the Silver Strike Project.
Tarku and EXLA agreed to terminate the original acquisition agreement and replace it with a new agreement granting Tarku immediate 100% ownership of the Silver Strike Project, as per the terms stated below.
Julien Davy, President, and CEO of Tarku, stated: “This is a transformational development for Tarku. This new agreement creates significant value for our shareholders by giving us an immediate 100% interest in the exciting Silver Strike Project. Tarku, will own and control more than 1,200 hectares of ground, in a famous historic mining district that has produced high-grade silver from surface to a maximum depth of 200 metres in the early-1900s and is known to have the geological potential for more silver, copper, gold, lead, zinc, and manganese mineralization.
This new agreement is a win-win solution, as EXLA now benefits from significant exposure to a consolidated 100% of the Silver Strike Project, as well as a focused exploration partner committed to its development. Tarku has lowered its commitments to acquire the project and will have better control on its exploration expenses. The consolidated ownership will also greatly facilitate capital raising initiatives going forward.”
Chris Lotito, President, and CEO of EXLA, stated: “The opportunity to partner with an exploration team of Tarku’s experience and pedigree is an exciting development for EXLA Resources. Consolidation of the ownership of the Silver Strike Project, ensures it can be advanced in the most streamlined method, and as a major shareholder of Tarku we will benefit from the value uplift of the project as it is advanced. We are also delighted to gain exposure to Tarku’s exciting Three A’s Project, located in Matagami Greenstone Belt.”
Dated February 24, 2022, EXLA and Tarku entered into an agreement to terminate the previous earn-in option agreement to acquire 75% of the project over 3 years, signed October 12, 2020, with the former vendor and simultaneously entered into a new purchase agreement, allowing Tarku to acquire 100% of the 140 mining titles in Tombstone that is now held by EXLA in return for consideration of 7,000,000 Tarku shares issued to EXLA, which will give EXLA a 9.65% interest in Tarku and delivering to EXLA debentures being comprised of an aggregate CAD$500,000 principal amount of a 6% convertible unsecured subordinated debenture due in 5 years. Each debenture is convertible at a price of CAD$0.10; granting EXLA a first right of refusal (ROFR) allowing EXLA the right to maintain its ownership position by participating in subsequent Tarku financings; award EXLA a 2% NSR on the property, 1% of which could be repurchased by Tarku for US$1,000,000.
The Silver Strike Project is located in Cochise County, Arizona, in the famous Tombstone Mining District, one of the earliest silver mining areas in the western United States where production started from numerous silver mines in 1877.
More than 95% of historic production is from less than 200 metres from surface and is primarily from oxide ore minerals. Discovery potential is significant.
The 2021 drill program at Silver Strike has revealed in addition to silver, the presence of high grades of gold, lead, and zinc suggesting similarities in terms of geological context to the nearby Hermosa project which in 2018 was purchased by South32 for US$1.8 billion.
In 2022, Tarku’s program will focus on project advancement, and new discoveries by conducting geophysical, geochemical and a minimum of 5,000-meter drilling focusing on surface to 400 metres depth along the Lucky Cuss and the Ground Hog Trend.