EGO - Brixton Metals Options its Atlin Goldfields Project to Eldorado Gold | Benzinga

VANCOUVER, British Columbia, July 16, 2024 (GLOBE NEWSWIRE) -- Brixton Metals Corporation (TSXV:BBB, OTCQB:BBBXF) (the "Company" or "Brixton") is pleased to announce that it has entered into a definitive option agreement (the "Option Agreement") with Eldorado Gold Corporation ("Eldorado"), whereby Eldorado has been granted the option to acquire 100%-ownership (the "Option") of the Company's Atlin Goldfields Project (the "Project"). The Project is a road accessible, 579 square kilometer mineral claim group located near the town of Atlin, British Columbia and is located within the traditional territory of the Taku River Tlingit First Nation. All dollar figures are in Canadian dollars, unless otherwise stated.

Highlights of the Option Agreement

• During the 5-year option period (the "Option Period"), Eldorado shall fund $1,000,000 in exploration expenditures per year beginning September 30^th, 2024, for an aggregate spend of $5,350,000; including an additional minimum commitment to fund $350,000 of exploration expenditures on or before September 30^th, 2024;
  
• Eldorado shall make cash payments to Brixton of $250,000 per year for aggregate payments of $1,100,000 during the Option Period; including an additional minimum payment of $100,000 within 10 days of signing the Option Agreement;
  
• In addition, at the end of the Option Period, Eldorado shall have the right to exercise the Option to acquire 100%-ownership of the Project by making a cash payment to Brixton in the amount of $7,000,000; where Brixton, at its election, may receive up to 50% of such payment in the form of common shares of Eldorado, subject to the prior attainment of the customary requisite regulatory approvals;
  
• Eldorado may, in its sole discretion, elect at any time during the option period to accelerate the payments or funding timetables for any of the earn-in requirements of the Option;
  
• Upon exercise of the Option by Eldorado, Brixton shall be granted a 1.0% (one percent) net smelter return royalty ("NSR"), with Eldorado retaining an option to purchase half (0.5%) of Brixton's NSR for $2,000,000 prior to the commencement of commercial production at the Project; and
  
• During the Option Period, Brixton shall be the Operator of the Project with Eldorado approving all work programs and budgets relating to the Project. Eldorado will also work closely and support Brixton with respect to ongoing environmental monitoring and community engagement efforts.
  

Chairman and CEO, Gary R. Thompson stated, "We are delighted to have attracted Eldorado Gold, a well-established miner, to the Atlin Goldfields Project. We look forward to working with Eldorado in advancing this exciting gold project."

Figure 1. Atlin Goldfields Project Location Map

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