Vancouver, British Columbia--(Newsfile Corp. - August 26, 2020) - Tower Resources Ltd. (TSXV: TWR) (OTC Pink: TWRFF) ("Tower" or the "Company") is pleased to announce that geophysical field work on the Company's Nechako property in central B.C. has been completed and a diamond drilling contract has been awarded for the upcoming 2000-metre program focused on expanding the recently announced Discovery Zone along the April Trend. The Company is currently awaiting IP interpretations to finalize the designs of and coordinate the RC and diamond drilling programs.
As a result of Tower's concentrated focus on its Nechako property, the Company has entered into an arm's length transaction with Volatus Capital Corp. ("Volatus"), pursuant to which Tower proposes to sell its 100% interests in and to the More Creek property (the "More Option") in the Golden Triangle area of northwestern B.C. and the Belle property (the "Belle Option") in the Toodoggone area to the east.
To exercise the More Option and earn a 100% interest in five mineral claims (6,430 ha), Volatus is required to make a total of $150,000 in cash payments, issue 100,000 common shares and complete $600,000 in expenditures associated with the exploration and development of the More Creek property over a 36-month period. Tower will retain a 1% net smelter returns royalty on the More Creek property of which 0.5% can be repurchased for $500,000.
To exercise the Belle Option and earn a 100% interest in seven claims (1,691 ha), Volatus is required to make a total of $100,000 in cash payments and issue 500,000 common shares over a 36-month period. Volatus must also fulfill all work commitments required to keep the Belle property in good standing.
Mr. Joe Dhami, Tower's President and CEO, comments, "Our drilling success at Nechako and the recent acquisition of the nearby Blackwater gold deposit by Artemis has mandated that we focus our exploration on the Nechako area. At the same time, given current market interest, Tower has elected to monetize the More Creek and Belle projects in the prolific Golden Triangle and Toodoggone areas under terms that will advance the exploration and development of these properties."
Volatus is focused on exploration and development of resources in gold and copper in the Toodoggone District of Northern British Columbia, and metals in the green economy that have strong demand profiles such as magnesium metal.
National Instrument 43-101 Disclosure
The technical content of this news release has been reviewed and approved by Mr. Stuart Averill, Chairman of ODM, a Director of the Company and a Qualified Person as defined by National Instrument 43-101.
About Tower Resources Ltd.
Tower is a Canadian based mineral exploration company focused on the discovery and advancement of economic mineral projects in the Americas. The Company's key exploration assets are the Rabbit North copper-gold porphyry project located between the New Afton and Highland Valley Copper mines and the Nechako gold project near New Gold's Blackwater project in northern British Columbia.
On behalf of the Board of Directors
Tower Resources Ltd.
Joe Dhami, President and CEO
This news release may contain statements which constitute "forward-looking information", including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.
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