- StraightUp announced having entered into a Purchase Option Agreement for a 100% dividend interest in the Ranger/Otter mining project
- This adds to the company’s growing property portfolio, which currently comprises the RLX North and RLX South Properties in Red Lake, Ontario
- StraightUp also recently received an early exploration permit for gold exploration in its RLX North property
- The Ranger/Otter Project addition, coupled with the early exploration permit, positions StraightUp to capitalize on the growing demand for gold, which has already surpassed $2,000 per ounce
In 2020, StraightUp Resources (CSE: ST) (OTCQB: STUPF), optioned mining claims that consisted of RLX North, RLX South, and Belanger properties, all situated in the Red Lake District, Ontario. With the region known for producing over 30 million ounces of gold so far, the company was optimistic with its investment and indicated its plans to survey the area further to uncover potentially profitable mineralization (https://ibn.fm/aoApU).
Now StraightUp has announced having entered into a Purchase Option Agreement that gives it exclusive right and option to acquire from Optionors a 100% dividend interest in the Ranger/Otter mining project, located in Red Lake, Ontario (https://ibn.fm/txEoV).
This agreement opens an opportunity for StraightUp to grow its property portfolio while also capitalizing on the surging gold market prices, which have surpassed $2,000 an ounce, fueled by growing gold demand from the war in Ukraine (https://ibn.fm/RkQTt).
In a statement by Carsten Menke, the head of next-generation research at Julius Baer Group Ltd., he noted, “Any escalation of the war could push the world economy toward a stagflation scenario, which we see as very bullish for gold.”
“Investors who see the potential for worsening could seek some protection in gold, but need to be aware that prices will likely retreat if their assumption does not hold true,” he added.
StraightUp looks to capitalize on this growing demand, hence its optimism for the new purchase agreement. The purchase also comes at the right time since the company’s ground exploration and heliborne magnetic surveys in the area have evidenced multiple locations of high merit and potential mineralization.
“We are pleased to further our position in Ontario’s Red Lake Mining District, especially now, given the rapid acceleration of exploration activity and large cap miners interest in the region,” noted Mark Brezer, the President and Director of StraightUp.
“These new claims expand our flagship RLX Project, surrounding the Great Bear Resources Sobel Project, by over 10 percent,” he added.
The purchase option agreement, dated January 20, 2022, will be executed on behalf of Perry English and Gravel Ridge Resources Ltd. (“Optionors”). StraightUp will have the right to buy back 1/3 of the net smelter returns royalty (“NSR”) for $500,000, and has the right of first refusal concerning any sale of the NSR.
The entire project consists of three claims, made up of 61 cells covering an area of 3,050 acres. It also borders the existing RLX North and RLX South Projects to the northeast.
Optionors will collectively receive a total sum of $72,000, spread over three years. In addition, StraightUp will also issue Optionors 200,000 common shares at $0.20 per share upon signing the Purchase Option Agreement.
In January 2022, StraightUp received an early exploration permit (PR-21-000261) on its RLX North Property, allowing for mechanized drilling and ground geophysical surveys requiring a generator. Going forward, the company seeks to make the most out of this permit, in addition to exploring the new Ranger/Otter Project.
“The latest results, combined with our extensive data set from previous exploration, strengthen our commitment to the Red Lake Mining District and its potential for legendary high-grade gold discoveries,” reckoned Mr. Brezer.
“Local expertise is continuing to prove itself invaluable to our exploration goals, and management extends further gratitude for everyone’s commitment and timely efforts,” he added (https://ibn.fm/CsAb2).
For more information, visit the company’s website at www.StraightUpResources.com.
NOTE TO INVESTORS: The latest news and updates relating to STUPF are available in the company’s newsroom at https://ibn.fm/STUPF
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