Calgary, Alberta--(Newsfile Corp. - April 30, 2025) - Argyle Resources Corp. (CSE: ARGL) (OTCQB: ARLYF) (FSE: ME0) ("Argyle" or the "Company") is pleased to announce that it has entered into an option agreement ("Option Agreement") pursuant to which it may acquire a 100% ("Option Arrangement") interest in and to the Clay Howell Rare Earths project ("Project"), subject to a 1.5% net smelter returns royalty ("NSR").
The Project is located in northern Ontario, Canada, roughly 50 km north-northeast of the town of Kapuskasing, and is defined by 10 contiguous mining claims spanning a total of 160ha. The mining claims and patents can be easily accessed by 4×4 pick-up truck using an all-weather access road from Kapuskasing and an abandoned logging road named CSR-8. 2010 and 2011 drilling activities were staged from a camp located at UTM coordinates 4213982E and 5522864N (Zone 17, NAD 83.)
The Clay-Howells Alkalic Rock Complex is comprised of 2 broad types of silica over-saturated syenitic rocks intruding a sequence of Early Precambrian aged paragneisses and orthogneisses that have been regionally metamorphosed to the upper amphibolite - granulite facies typical of the Kapuskasing Sup-Province (Sage, 1988).
Diamond drilling activities were conducted on the Clay-Howells Property from January 16th, 2010 to March 30th, 2010. Norex Drilling Ltd. was contracted to build a camp on the property as well as conduct the drilling operations.
Eighteen drill holes were completed within the carbonatite - magnetite zone to test Niobium - Rare Earth Element mineralization at depth. A total of 5432.5 metres of core was recovered and 1825 samples were collected.
Following the 2010 drill program, an eight-hole diamond drill program program was initiated in early 2011 to test other magnetic anomalies within the 110 km² carbonatite complex. Roughly 2,154 m were drilled and 235 samples were sent for assaying. Several high priority magnetic zones located outside of the main Clay-Howells deposit were tested. Of the 2010 and 2011 drill programs, 6 drill holes, Ch-08, CH-11-03, CH-11-04, CH-11-05, CH-11-06 and CH-11-07 fall within the current Clay Howell Project acquired by Argyle.
Under the terms of the Option Agreement, the Company may acquire the Project, subject to the NSR, by making the following cash and share payments to the vendors ("Vendors"):
Due Date
Common Share Payments
Cash Payment (CAD)
Upon signing the Option Agreement ("Effective Date")
-
$12,000
Within 7 business days of the Effective Date
160,000
-
On the 1st anniversary of the Effective Date of the Option
160,000
$16,000
On the 2nd anniversary of the Effective Date
-
$24,000
On the 3rd anniversary of the Effective Date
-
$32,000
Total
320,000
$84,000
The Company notes that the NSR is subject to a buyback right in favour of the Company, under which the Company may reduce the NSR to 1% by making a payment of $500,000 to the Vendors.
Qualified Person
George Yordanov, P.Geo., Director, reviewed and approved the scientific and technical information disclosed in this press release, acting as the Company's Qualified Person as defined by National Instrument 43-101.
About Argyle Resources Corp.
Argyle Resources Corp. is a junior mineral exploration company engaged in the business of acquiring, exploring, staking and evaluating natural resource properties in North America. In addition to the Saint Gabriel project, the Company currently holds an option to acquire up to 100% of the Frenchvale Graphite Property located in Nova Scotia, Canada and owns 100% interest in the Pilgrim Islands, Matapédia and Lac Comporté quartzite silica projects in Québec, Canada. Argyle is engaged in a research partnership with the National Institute of Scientific Research (INRS), a high-level research and training institute funded by the Québec government to conduct exploration programs on the Company's silica projects. The Company was incorporated in 2023 and its head office is located in Calgary, Alberta, Canada.
This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact included in this news release such as statements regarding the acquisition of the Project and receipt of regulatory approval are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include but are not limited to the risks detailed from time to time in the filings made by the Company with securities regulators. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company.
Factors that could cause actual results to vary from forward-looking statements or may affect the operations, performance, development and results of the Company's business include, among other things, that mineral exploration is inherently uncertain and may be unsuccessful in achieving the desired results; that mineral exploration plans may change and be re-defined based on a number of factors, many of which are outside of the Company's control; the Company's ability to access sources of debt and equity capital; competitive factors, pricing pressures and supply and demand in the Company's industry. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by applicable law.
The Canadian Securities Exchange (CSE) has not reviewed, approved, or disapproved the contents of this press release.
