Vancouver, British Columbia – Cypress Hills Resource Corp. (NEX: CHY.H) (the “Corporation“) is pleased to announce that it has entered into a property option agreement, dated November 20, 2020 (the “Option Agreement“) with Strategic Metals Ltd. (“Strategic“) and Archer, Cathro & Associates (1981) Limited pursuant to which the Corporation will acquire the right to earn up to an undivided eighty (80%) interest in 267 quartz mining claims, located in the Whitehorse Mining District, Yukon Territory (the “Property“) owned by Strategic (the “Proposed Transaction“).
Under the terms of the Option Agreement, the Corporation may exercise the option by making aggregated staged payments of $155,000 and incurring aggregate expenditures of $2,600,000 over the next four years. The first payment of $15,000 is payable upon the TSX Venture Exchange (“Exchange“) accepting the reactivation of the Corporation as a Tier 2 mining issuer on the Exchange and at such time the Corporation will also be required to issue Strategic 25,000 common shares in the capital of the Corporation (the “Shares“). The Shares will be issued at a deemed price of $0.35 per share, such price being the closing price of Shares as of the date hereof. The obligations of the parties under the Option Agreement are conditional upon receiving Exchange acceptance of the Proposed Transaction. The Proposed Transaction will not constitute a Related Party Transaction (as such term is defined in the policies of the Exchange).
In connection with the Proposed Transaction the Corporation plans to make a reactivation application in accordance with Exchange Policy 2.6 – Reactivation of NEX Companies. Upon completion of the Proposed Transaction and subject to Exchange Approval, the Corporation intends to be listed as a Tier 2 Mining Issuer on the TSX Venture Exchange.
The Corporation is also pleased to announce that Richard A. Graham has been appointed to the Corporation’s Board of Directors and as President and Chief Executive Officer to replace Ted J. Fostey, who will remain on the Board. Mr. Graham is a professional geologist registered with the Association of Professional Engineers, Geologists and Geophysicists of Alberta and has approximately 30 years of domestic and international geologic experience.
For further information on the contents of this news release or the activities of Cypress please contact:
Richard A. Graham, P. Geol
President and Chief Executive Officer
Tel. (604) 689-1428