February 7, 2020 – Vancouver, British Columbia – Arbor Metals Corp. (the “Company”) (TSXV:ABR) announces that it has entered into a share purchase agreement, dated effective February 7, 2020, with an arms’-length third-party (the “Vendor”), pursuant to which it will acquire all 5,000,000 common shares in the capital of Kruger Gold Corp. (“Kruger”), a privately-held mineral exploration company. Kruger holds the right to acquire a seventy-five percent interest in and to a mineral exploration permit located in Burkina Faso, West Africa, and commonly referred to as the “Rakounga Project” (the “Project”). Kruger has control over operations conducted on the Project, and can acquire the interest in the Project by completing a series of cash payments and incurring exploration expenditures in the development of the Project.
In consideration for the acquisition of Kruger, the Company has agreed to pay cash consideration of $0.16 per share of Kruger. No securities of the Company will be issued in connection with the acquisition of Kruger, nor are any finders’ fees or commissions owing. Following completion of the acquisition, the Company will assume control of operations conducted on the Project, through Kruger.
The acquisition of Kruger resulted from the Company’s ongoing assessment of strategic acquisition opportunities in the exploration-stage mineral sector. This assessment has focused on projects located in Africa, with a particular focus on Africa, and the Company will look to add additional projects to its portfolio in the near term.
The Company does not intend to devote the majority of its resources to the development of the Project in the next twelve months, nor does it expect Kruger, or the Project, to represent the majority of its assets going forward. The Company is at arms’-length from Kruger, and the Vendor, and the acquisition of Kruger does not constitute a fundamental acquisition under the policies of the TSX Venture Exchange.
The Company also announces that Alex Klenman has been appointed as Director of Corporate Development for the Company, and has transitioned the duties of Chief Executive Officer to Mark Ferguson, effectively immediately.
For further information, contact Mark Ferguson, Chief Executive Officer, at email@example.com.
On behalf of the Board,
Arbor Metals Corp.
Mark Ferguson, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to a review of potential strategic acquisition opportunities, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.