Toronto, Ontario--(Newsfile Corp. - August 12, 2022) - Tashota Resources Inc. ("TRI" or the "Company") is pleased to announce an offering of flow-through units in accordance with the recently-introduced Critical Mineral Exploration Tax Credit. The Company is also pleased to provide an update on its exploration activities at its 50% owned Echo Ridge property in the Shebandowan Greenstone Belt.
Critical Mineral Exploration Tax Credit Flow-Through Unit Offering
The Critical Mineral Exploration Tax Credit ("CMETC") provides an additional exploration tax credit per the 2022 Federal budget released on April 7, 2022. The Canadian government introduced the CMETC to encourage investment in the exploration of such critical minerals as copper, nickel, lithium, and cobalt, and specifically, it provides an additional 30 percent tax credit on top of the 100 percent tax deductions provided by the traditional Canadian exploration tax credit flow-through structure, where applicable.
Critical minerals are used in various clean energy technologies, including electric car batteries, solar panels, wind turbines, and virtually all electronic devices. The CMETC is intended to ensure that Canada, with its vast potential for discovering mineral resources, is well-positioned to benefit from the looming demand for these critical minerals1. Management of the Company believes that the Company is qualified to offer CMETC flow-through units due to the presence of copper-gold mineralization on its Echo Ridge property in the Shebandowan Greenstone Belt, which is currently being explored (more on this below).
TRI's CMETC-based offering is an offering of up to 5.2 million units (the "Units") at a price of $.20 per Unit to purchasers pursuant to the "accredited investor" and "family, friends and business associates" exemptions or other applicable exemptions in National Instrument 45-106 Prospectus Exemptions. Each Unit is comprised of one (1) common share in the capital of TRI to be issued as a "flow-through share" (as defined in subsection 66(15) of the Income Tax Act (Canada) and in accordance with the 2022 Federal Budget (a "Common Share") and one (1) common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase an additional Common Share at a price of $0.30 per Common Share for a period of three (3) years from the date of issuance, subject to the terms and conditions set out in the subscription agreements relating to the offering. The Warrants are subject to acceleration, such that should the Common Shares trade on an exchange for ten (10) or more consecutive days at a price of $0.45 or greater, the Company may, at its option, provide written notice to the holder requiring that the Warrants be exercised within 30 days of the date of the notice, failing which the Warrants shall immediately thereafter expire.
Echo Ridge Exploration Update
TRI recently completed a series of repairs on Clay Lake Road that have enabled Abitibi Geophysics ("Abitibi") to mobilize and conduct a down-hole survey program involving measurements between approximately 12 drill hole pairs, including H2H 3D IP surveys (under an exploration permit valid until November 22, 2022). Drill pads will be planned following the results of this work, which will outline the best conductive responses in anticipation of a minimum 1,500 metre drilling program. The present exploration is based on mineralization that has a clear signature of over 500 meters strike length and is open on strike. This is also supported by a 3D geologic and mineralization model based on the Company's thirteen drill hole program conducted in 2021, as detailed in a report by Richard Kilpatrick, P.Geo, with an effective date of April 19, 2022.
The results of the 2021 drill program show copper-gold mineralization within the diorites occurring near the sheared contacts with metasedimentary rocks. The best results from the drilling returned 0.5% Cu over 8.14m (ER-21-10), 1.33% Cu over 3.5m (ER21-13), .45% Cu over 3.58m (ER21-12), and 2.08% Cu over 1.85m (ER21-09).
These findings resulted in a recommendation to conduct down-hole surveys on the holes completed to date and conduct step-out drilling to the east and west of the mineralization identified in the 2021 program as well as other recommendations.
These results have been deemed sufficient by Ikram (Ike) Osmani, MSc., P.Geo, TRI's Qualified Person ("QP") on this project for the Company to qualify to offer the CMETC flow-through units discussed above. Commenting on the Kilpatrick report and the results of subsequent exploration work supervised by Dr. Colin Bowdidge, P.Geo on an additional set of drill holes at Echo Ridge (ER21-01 to ER21-05), Mr. Osmani stated that Echo Ridge has "a potential low-grade, bulk-tonnage copper deposit". For clarity, the drill hole results of the subsequent exploration work have been received by TRI and submitted to Mr. Osmani and a report is being finalized. Once the report is completed, the Company will provide a summary of the assay results of these additional drill holes and the report's recommendations.
About Tashota Resources Inc.
Tashota Resources Inc. ("TRI") is a prospect generator junior resource exploration company currently focused on defining and monetizing the mineral deposits on its multiple properties in historically prolific gold camps in Northern Ontario. TRI has stellar management and advisory team with significant exploration, engineering, project financing, and permitting experience. This includes decades-long experience in prospecting and mining operations in the Hemlo, Shebandowan, and Beardmore-Geraldton Gold Camps, where TRI has property interests comprising nearly 45,000 acres.
ON BEHALF OF THE BOARD,
Charles J. Elbourne,
President & CEO
For further information, please contact:
Charles J. Elbourne, President & CEO,
Tashota Resources Inc.
82 Richmond St. E. Suite 401
Toronto, ON M5C 1P1
Cautionary Note Regarding Forward-Looking Statements and Information
This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements in this press release include, but are not limited to, statements regarding the timing and amount of estimated future exploration and success of such exploration activities; and the availability of the CMETC for the Company's Unit offering as described in this press release. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "schedule", "estimates", "forecasts", "intends", "continue", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are made based upon certain assumptions and other important facts that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, availability of sufficient financial and other resources in order to complete anticipated exploration work on the Company's properties; availability of certain tax treatment under the CMETC; currency fluctuations; the global economic climate; and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact the COVID 19 pandemic may have on the Company's activities and the economy in general; the impact of the recovery post COVID 19 pandemic and its impact on precious metals; the risk that the Company may not be able to secure financing on the terms described in this press release or at all; there being no assurance that the exploration program described in this press release will warrant future exploration on the Echo Ridge Property; risks and uncertainties inherent to any mineral exploration program; receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future gold and other metal prices; accidents, labour disputes and shortages; environmental risks and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
In presenting this information, TRI is not making an offer to sell nor soliciting an offer to buy any securities, certifying the completeness or accuracy of this information, or assuming that the recipient is qualified to consider this opportunity. Accordingly, this document does not and is not intended to comply in any manner with any United States or Canadian securities or disclosure laws or requirements. Prior to making or soliciting any such offer, the Company will provide access to such information and will comply with the requirements of applicable securities laws.
1 For one reference, see: https://www.utilitydive.com/news/copper-shortfall-greenhouse-gas-climate-goals-report-minerals/627334/.
SOURCE: Tashota Resources Inc.