Metals Creek Sells Tillex Copper Project

Metals Creek Resources (MEK) has announced a binding agreement to sell its 85% interest in the Tillex Copper-Silver Project to Aruma Resources Limited (ASX: AAJ). The total consideration structure is heavily staged: * Upfront Consideration: CAD $100,000 cash and CAD $125,000 in Aruma shares upon closing. * Deferred Consideration: * CAD $125,000 cash + CAD $250,000 shares at 12 months. * CAD $150,000 cash + CAD $350,000 shares at 24 months (subject to resource milestones). * CAD $250,000 cash + CAD $475,000 shares at 36 months (subject to resource milestones). * CAD $500,000 cash production payment upon commercial production. * Royalty: MEK retains a 0.5% Net Smelter Return (NSR) royalty (Aruma can buy back 0.25% for $250k). This is in addition to a 0.5% NSR MEK acquired from Blue Moon Metals on Jan 9, 2026, consolidating a total 1.0% NSR position for MEK. * Strategic Rationale: Management states this allows the company to focus capital and effort on its flagship Ogden Gold Project in Timmins.

This transaction is Material - Positive primarily due to the company's precarious financial position, though it represents a strategic retreat from copper. * Liquidity Injection: As of the September 30, 2025 financials, MEK had only ~$26,000 in cash. While they closed a financing in December 2025 (~$256k gross), the company operates with a thin margin. The immediate ~$225,000 in value (cash + liquid ASX shares) provides a necessary non-dilutive runway extension. * Asset Monetization vs. "Fire Sale": The valuation is modest. The total potential deal value is ~$2.3M, but the guaranteed upfront value is only ~$225k. Given that MEK drilled high-grade intervals at Tillex in mid-2025 (e.g., 98.2m @ 1.82% Cu announced June 26, 2025), selling the asset for such a low upfront payment suggests either the geological upside is capped, the deposit is economically challenging, or MEK was desperate to cut holding costs. * Portfolio Focus: This removes the burden of exploration expenditures on Tillex, transferring it to Aruma, while MEK retains upside exposure through Aruma shares and the royalty. It focuses the narrative purely on the Ogden Gold Project.

Metals Creek Resources is a junior explorer focused on gold and base metals in Canada. * Flagship Project (Ogden Gold): Located in the Timmins Camp, Ontario. It covers 8km of the Porcupine-Destor Fault. The project involves a 50/50 JV (MEK is operator) involving the past-producing Naybob Gold mine. Recent work focuses on the Naybob West and Thomas Ogden zones. * Secondary Assets (Divested/Optioned): * Tillex (Copper): Sold to Aruma Resources (Jan 2026) for cash/shares/royalty. * Yellow Fox (Antimony/Gold/REE): Optioned to Lomiko Metals, who is funding exploration. * Dona Lake (Gold): Optioned to Goldshore Resources (implied by previous strategy of project generation).