(TheNewswire)
December 28, 2022 – TheNewswire - DAMARA GOLD CORP. (TSXV:DMR)( “ Damara ” or the “ Company ” ) is pleased to announce further to itsnews release of December 23, 2022 it has received TSX Venture Exchangeapproval with respect to the proposed acquisition of a 100% undividedinterest in the VanLab Property located in the Quebec territory ofNunavik 200 km north of Schefferville and 200 km south ofKuujjuaq (the“ Acquisition ”).
The Acquisition is being carried out in accordance withthe terms of a property purchase agreement (the " Purchase Agreement ") dated December 22, 2022, between theCompany and two arm's length sellers (the" Sellers "). Pursuant to the PurchaseAgreement, as consideration for acquiring a 100% interest in theVanLab Property, the Company hasissued as consideration to theSellers: (i) an aggregate of 4,000,000 units (each a“ Unit ”). Each Unit iscomprised of one common share (a “ Consideration Share ”) in the capital of Damara and onenon-transferable share purchase warrant (each a “ Warran t”). Each Warrant entitles the Sellers to acquire oneadditional common share in the capital of Damara (the“ Warrant Shares ” andtogether with the Consideration Shares and Warrants, the“ Consideration Securities ”) at an exercise price of $0.25 for a period of thirty-six(36) months to expire on December 23, 2025; and (ii) Damara hasgranted to the Sellers an aggregate 2% net smelter returnroyalty.
The Consideration Securities will be subject to astatutory four month and one day hold period under applicablesecurities laws to expire on January 24, 2023.
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.
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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