Huntington looking to buy property near Great Bear Resources

Huntington Exploration Inc. announced today changes to the directors and executive officers of the Company. In addition, the Company also announced that it has entered into two mineral property acquisition agreements with arm’s length third parties, as described below.

PROPOSED ACQUISITION

Huntington is pleased to announce that it has entered into two mineral property acquisition agreements with arm’s length third parties (collectively, the “Acquisition Agreements”) with respect to the purchase (the “Proposed Acquisition”) of mineral exploration properties in the Birch-Uchi region on Ontario bridging Treaty 3 and Treaty 9 Territories (the “Birch-Uchi Property”). The Proposed Acquisition is expected to close on or before January 22, 2021, subject to approval of the TSX Venture Exchange (the “TSXV”).

Pursuant to the Proposed Acquisition, the purchase price for the Birch-Uchi Property will be satisfied by a cash payment in the aggregate amount of $30,000 and the issuance of an aggregate of 200,000 common shares in the capital of the Corporation at a deemed price of $0.165 per share. The common shares issued in connection with the Proposed Acquisition will be subject to a hold period of four month and a day from the date of closing. In addition, one of the vendors has retained a 1.5% Net Smelter Return (“NSR”) royalty, payable upon the commencement of commercial production from the Birch-Uchi Property. The Corporation has the right at any time to purchase one-half of the NSR royalty from such vendor, in consideration of the payment of $500,000, thereby reducing such royalty to a 0.75% NSR royalty.

The exploration area that comprises the Birch-Uchi Property is located midpoint between Red Lake and the Springpole Gold Project approximately 80 kilometers northeast of Red Lake within the same regional geological depositional environment. The Proposed Acquisition will consolidate positions held by the two arm’s length third party vendors, which in total cover an area of 7,425 hectares. This region has drawn new attention driven by improved commodity pricing and following the completion of the Proposed Acquisition, Huntington would own a critical mass of contiguous exploration opportunities with an exploration workplan currently in development for 2021.

ABOUT THE BIRCH-UCHI PROPERTY

The Birch-Uchi Property is contiguous with Great Bear Resources’ Red Lake North project and Prosper Gold Corp’s Golden Sidewalk project, where recent channel sampling results returned up to 32.6 g/t Au over 2.0 m (Prosper Gold Corp news release dated November 16, 2020). Other notable new active projects in the region include Pacton Gold’s Swain and ALX Resources’ Vixen projects. It is located near the Jackson-Manion Mine, which historically produced 29,778 oz Au, as well as the Bathurst Mine which produced 307 oz Au.

EXECUTIVE AND BOARD APPOINTMENTS

Huntington is pleased to announce that Mr. Christopher Brown has been appointed as interim President, Chief Executive Officer and a director of the Company and Mr. Sameer Uplenchwar has been appointed as interim Chief Financial Officer and a director of the Company. In addition, Mr. Frank Busch has been appointed as a director of the Company.

The Company also announced that Mr. Tim Bowes and Mr. Michael Binnion have resigned as directors of the Company. Huntington would like to thank both gentlemen for their contributions to the Company over the years.

Mr. Christopher Brown, P.Eng, brings over 25 years of financial and technical engineering experience having worked significantly on emerging resource plays internationally. He was responsible for advising institutional investors on exploration global investment opportunities and was a top ranked research analyst with BMO Capital Markets and Canaccord Genuity. His most recent focus has been applying his global expertise to assist Indigenous Nations in Canada to institute corporate governance and provide management leadership for new commercial opportunities for Nations. He has met with significant success on improving access to capital for Indigenous Nations, as well as, effectively partnering to develop new revenue streams that directly benefit the Nations.

Mr. Sameer Uplenchwar, CPA, CMA, CFM, brings over 15 years of financial and business experience, with recent experience working with Mr. Brown on providing financial and governance guidance/development for First Nations. Mr. Uplenchwar most recently served as Managing Director with Global Hunter Securities in Calgary, and later Head of US Research with GMP Capital in Houston. Before that, Mr. Uplenchwar served as Senior Energy Analyst supporting a $550MM gross long/short strategy fund in New York for Surveyor Capital LLC. Previously, Mr. Uplenchwar worked for Morgan Stanley in New York, as well as KPMG and LaSalle/ABN AMRO Bank. Mr. Uplenchwar has been active on environmental initiatives and will provide both financial guidance to Huntington in addition to ESG oversight.

Mr. Frank Busch, is currently CEO of NationFUND and is a published author and past recipient of the Burt Award for First Nations, Metis and Inuit Literature. Mr. Busch is a member of the Nisichawayasihk Cree Nation in northern Manitoba. He holds a Bachelor’s degree in Indigenous Studies from the University of Manitoba, five certificates from the Canadian Securities Institute and a Post-Graduate Certificate in Finance from Harvard University. As CEO of NationFUND, Mr. Busch provides First Nations with guidance on capital markets, private equity, debt financing and investment strategy as well as financial education. Mr. Busch will be an influential independent leader on the Board of Huntington.

Mr. Robert Verhelst will remain as a director of the Company. Mr. Verhelst has a total of 20 years of senior management experience of which 11 years spent as a partner, director, and officer of several Western Canadian based brokerage firms. This includes 6 years as President and CEO of a US (FINRA) regulated foreign broker dealer. Mr. Verhelst also has 3 years of senior risk management leadership at the regional and national management team level at CIBC. He has 11 years of combined experience working in enforcement at the Federal government (RCMP), Alberta Securities Commission and Vancouver Stock Exchange. Huntington would like to thank Mr. Verhelst for his dedication and service to Huntington as the former President and Chief Executive Officer and looks forward to his ongoing Board of Director corporate governance insight.

Following the completion of the Proposed Acquisition, Huntington intends to continue to recruit a management team that will continue to expand its mineral exploration portfolio.

Tags: Northern Ontario / Deals & Financial / Gold / All Articles