(TheNewswire)
December 23 , 2022 – TheNewswire - DAMARA GOLD CORP. (TSXV:DMR) ( “ Damara ” or the “ Company ” ) is pleased to announce that it has entered into purchaseagreement (the " PurchaseAgreement ") to acquire a 100% undividedinterest in 203 map designated mineralexploration claims covering approximately 9,675 hectares located inthe Labrador Trough region of Quebec, (collectively the " VanLab Property "). The PurchaseAgreement, dated December 22, 2022, was completed with two arm'slength sellers (the " Sellers ")
The VanLab Property
The Vanlab property covers a portion of the Labradortrough approximately 200 km northwest of Schefferville. Historicalpublic data obtained from the files of the Ministère de l’Énergieet des Ressources naturelles-Québec indicates the presence of variousminerals. The main potential interest includes vanadium, copper,cobalt and scandium. One historical sample reported 6% Vanadium(showing Surprise 2, GM41311). The result from this sample has notbeen independently verified by Vanlab. It is listed in documents filedwith the Ministère. The entire claim block has been surveyed bymodern airborne electromagnetics, magnetics and radiometrics. Vanlabobtained this public data from the ministry files and reprocessed itto identify specific targets for a 2023 field program. The primaryexploration focus will be vanadium, copper and cobalt.
The Purchase Agreement
Subject to TSX Exchange (the“ Exchange ”) approval, Damara will acquire the Sellers’ 100% interest in and tothe VanLab Property inexchange for the following consideration (the “ Consideration ”):
(a) the issuance by the Damara to the Sellers onwithin 5 business days of Exchange approval (the“ Closing Date ”) anaggregate of 4,000,000 units (each a “ Unit ”). Each Unit shall be comprised of onecommon share (a “ Consideration Share ”) in the capital of Damara and onenon-transferable share purchase warrant (each a “ Warran t”). Each Warrant shall entitle theSellers to acquire one additional common share in the capital ofDamara (the “ Warrant Shares ” and together with the Consideration Sharesand Warrants, the “ Consideration Securities ”) at an exercise price of $0.25 for aperiod of thirty-six (36) months from Closing; and
(b) the Damara will grant to the Seller of a 2%net smelter return royalty (the “ NSR Royalty ” on Closing.
Pursuant to the terms of the PurchaseAgreement the Sellers may be entitled to a 0.5% net smelter returnroyalty in any interest Damara acquires in additional claims within anarea of interest of the VanLab Property.
The Consideration Securities will be subject to astatutory four month and one day hold period under applicablesecurities laws from the Closing Date.
Qualified Person
Yvan Bussières, P. Eng, (Quebec) technical advisor to the Company, is the Qualified Person as definedby National Instrument 43-101 who has reviewed and approved thetechnical data in this report.
About Damara
Damara Gold Corp. is a TSX Venture listed Canadianpublic company with a Board of Directors seasoned in the mineralexploration industry with extensive and successful internationalexperience with a focus on identifying and acquiring prospective andunder-explored gold properties worldwide.
ON BEHALF OF THE BOARD OF DIRECTORSOF DAMARA
“Larry Nagy”
Larry Nagy, Chief Executive Officer
For additional information visit Damara’s website at www.damaragoldcorp.com or contact:
Damara Gold Corp.
Larry Nagy
Chief Executive Officer
Ph: (250-241-5692)
Disclaimer for Forward-LookingInformation
This news release contains statements that constitute"forward-looking Information", as suchterm is used in applicable Canadian securities laws . Such forward-looking information involves known andunknown risks, uncertainties and other factors that may cause theCompany’s actual results, performance or achievements, ordevelopments in the industry to differ materially from the anticipatedresults, performance or achievements expressed or implied by suchforward-looking information. Forward-looking information includesstatements that are not historical facts and are generally, but notalways, identified by the words "expects,""plans," "anticipates," "believes,""intends," "estimates," "projects,""potential" and similar expressions, or that events orconditions "will," "would," "may,""could" or "should" occur.
Although the Company believes the forward-lookinginformation contained in this news release is reasonable based oninformation available on the date hereof, by its natureforward-looking information involves assumptions and known and unknownrisks, uncertainties and other factors which may cause our actualresults, level of activity, performance or achievements, or otherfuture events, to be materially different from any future results,performance or achievements expressed or implied by suchforward-looking information.
Examples of such assumptions, risks and uncertaintiesinclude, without limitation, assumptions, risks and uncertaintiesassociated with general economic conditions; the Covid-19 pandemic;adverse industry events; the receipt of required regulatory approvalsand the timing of such approvals; that the Company maintains goodrelationships with the communities in which it operates or proposes tooperate, future legislative and regulatory developments in the miningsector; the Company ’ sability to access sufficient capital from internal and externalsources, and/or inability to access sufficient capital on favorableterms; mining industry and markets in Canada and generally; theability of the Company to implement its business strategies;competition; the risk that any of theassumptions prove not to be valid or reliable, which could result indelays, or cessation in planned work, risks associated with theinterpretation of data, the geology, grade and continuity of mineraldeposits, the possibility that results will not be consistent with theCompany’s expectations, as well as other assumptions risks anduncertainties applicable to mineral exploration and developmentactivities and to the Company, including as set forth in theCompany’s public disclosure documents filed on the SEDAR website at www.sedar.com .
THE FORWARD-LOOKING INFORMATIONCONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF DAMARAAS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TOCHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ONFORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATIONAS OF ANY OTHER DATE. WHILE DAMARA MAY ELECT TO, IT DOES NOT UNDERTAKETO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIREDIN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this press release.
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