BTU Metals acquires two gold properties in the Wawa gold district

BTU METALS has entered into a purchase and sale agreement pursuant to which the Company will purchase, upon closing, a 100% interest in two large gold exploration projects in the active Wawa gold area of northern Ontario; the Echum Gold Project adjacent to Alamos Gold and the Hubcap Gold Project adjacent to Red Pine Exploration. Each of the projects covers areas of historic gold mineralization and neither project has been the subject of significant or comprehensive exploration in recent years. The Echum property is adjacent along trend of the Alamos Gold Island Gold Mine property and the Hubcap property is adjacent along the geological trend of the gold mineralization being drill tested extensively by Red Pine Exploration. The consideration payable by BTU on closing for a 100% interest in the Echum and Hubcap properties is: CAD$25,000 and 5 million BTU treasury common shares. The only other obligation of the Company is in regards to assuming four 2% net smelter royalties to the original vendors of various parcels in relation to four parts of the property, where applicable. The Company shall have the right to pay $1 million for 1% of 3 of the 4 existing 2% NSR’s. The 4th claim group has no buy down provision however has a right of first refusal in favor of the Company should the vendors decide to sell their NSR upon receipt of an offer to for their NSR. Some claims have no underlying royalty payable. This transaction is subject to customary closing conditions, including corporate and regulatory approvals. The Acquisition is an arm’s length transaction pursuant to the policies of the TSX-V and is subject to approval of the TSX-V and the shareholders of the vendor which is anticipated to be received in not more than 60 days.