(TheNewswire)
Vancouver, BC - TheNewswire - December 19, 2023 - EGR Exploration Ltd. (TSX-V:EGR) (“ EGR ” or the “ Company ”) is pleased to announcethat it has entered into an option agreement to sell (the "OptionAgreement") the Urban Barry Gold Property in Quebec to HarvestGold Corp. (TSXV: HVG) (“Harvest Gold”). The transaction ispending TSX Venture Exchange (the “TSXV”) approval.
Highlights of the Agreement
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Option and Sale of 122 claims and 6,879 ha, Urban Barry Gold Propertylocated in Urban Barry/Windfall area Quebec.
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EGR will receive a total of $90,000 cash, 1,750,000 common shares ofHarvest Gold, and a 2.0% NSR Royalty. Harvest Gold is also requiredto spend a minimum of $300,000 in exploration expenditures in thefirst two years.
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EGR will receive an additional 1 million common shares upon HarvestGold announcing a 43-101 compliant resource estimate of 1 millionounces of gold in the inferred category.
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Value creation for EGR shareholders with discovery potential in aQuebec focused exploration company.
CEO Comments
Daniel Rodriguez, CEO and Director of EGR comments, “This is anaccretive transaction for our shareholders. We now are shareholder inHarvest Gold, a Quebec focused gold exploration company that will movethe Urban Barry property forward. This mining district is heating upwith recent transactions, led by the 50/50 JV of Osisko’ s Windfallproperty with Gold Fields Limited and infrastructure announcementswith Hydro-Quebec. Harvest Gold, whose management team is motivated,experienced, and very strong technically, is more than capable ofmaking a new discovery in the Abitibi region. We look forward totheir success with both their Quebec acquisitions.”
About Urban Barry Property
The Urban Barry property is in the Ralleau and Wilson townships of theJames Bay region of Quebec in the Abitibi Greenstone Belt, which ishost to the Windfall gold deposit that holds nearly 4 million ouncesof gold (indicated and inferred resources).* The Urban Barry propertyencompasses an area of approximately 6,900 hectares and directlyadjoins Osisko Mining Corp/Gold Field’s (50/50 JV) Windfallproperty, with the Langlois base metal-silver-gold mine locatedapproximately 30 km to the northwest.
*https://www.osiskomining.com/projects/windfall
From November 2019 to March 2020, EGR flew an airborne dronemagnetic geophysical survey over the property. Results from thissurvey confirm the presence of the northwest extension of rock unitsand fault structures hosting the nearby Windfall gold deposit.
Transaction Detail Summary
1) Harvest Gold will pay a total of $90,000 in cash payable in threetranches:
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First cash payment of $15,000 upon signing of the Option Agreement andTSXV approval
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Second cash payment of $30,000 on/before July 2, 2024
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Third cash payment of $45,000 on/before July 2, 2025
2) Harvest Gold to issue 2,750,000 shares in three tranches:
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First share issuance of 1,000,000 shares upon updated claims statuswith Ministère des ressources naturelles et des forêts
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Second share issuance of 500,000 shares on December 15, 2024
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Third share issuance of 250,000 shares on December 15, 2025
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Final share issuance of 1,000,000 shares if there is an NI 43-101inferred resource estimate of 1,000,000 oz AuEq or greater.
3) EGR will retain a 2.0% NSR Royalty on the Urban Barry Propertysubject to a 1.0% (50% of Royalty) buyback for $1,000,000.
4) Harvest Gold will expend $100,000 on theproperty within one year of the date of TSXV approval and anadditional $200,000 on or before the second anniversary of TSXVapproval of the Option Agreement.
5) Harvest Gold is to complete two years of work commitments prior toreturning any claims.
Qualified Person Statement
The disclosure of technical or scientific information in this pressrelease has been reviewed and approved by Phillip Terrence Coyle,P.Geo. (OGQ 2079) for Harvest Gold. Mr. Coyle serves as a “QualifiedPerson” as defined in National Instrument 43-101, Standards ofDisclosure for Mineral Projects of the Canadian SecuritiesAdministrators. A number of mineral resources or significantoccurrences disclosed herein relate to nearby properties owned byother companies, and the data presented have been extracted from thesecompanies’ press releases and websites. A Qualified Person has beenunable to verify this information from the adjacent properties, andsuch results are not necessarily indicative of potential quantities orgrades of mineralization on the Company’s properties.
EGR Exploration Ltd. is exploring for gold in theDetour-Fenelon Gold Trend approximately 300 kilometres north ofTimmins, Ontario. EGR’s 40,255 hectare Detour West gold project iscontiguous to Agnico Eagle’s property which contains the Detour LakeGold Mine and is approximately 20 kilometres from the mine, which isalso hosted in the Abitibi Greenstone Belt.
For further informationcontact:
Daniel Rodriguez
CEO & Director
Phone: (604) 353-4080
Email: drodriguez@egrexploration.com
Forward ? Looking Statement (Safe Harbor Statement): This press releasecontains forward-looking statements within the meaning of applicablesecurities laws. The use of any of the words "anticipate","plan", "continue", "expect","estimate", "objective", "may","will", "project", "should","predict", "potential" and similar expressions areintended to identify forward-looking statements. In particular, thispress release contains forward-looking statements concerning theCompany's exploration plans. Although the Company believes that theexpectations and assumptions on which the forward-looking statementsare based are reasonable, undue reliance should not be placed on theforward-looking statements because the Company cannot give anyassurance that they will prove correct. Since forward-lookingstatements address future events and conditions, they involve inherentassumptions, risks and uncertainties. Actual results could differmaterially from those currently anticipated due to a number ofassumptions, factors and risks. Theseassumptions and risks include, but are not limited to, assumptions andrisks associated with conditions in the equity financing markets, andassumptions and risks regarding receipt of regulatory and shareholderapprovals. Management has provided the above summary of risks andassumptions related to forward-looking statements in this pressrelease in order to provide readers with a more comprehensiveperspective on the Company's future operations. The Company's actualresults, performance or achievement could differ materially from thoseexpressed in, or implied by, these forward-looking statements and,accordingly, no assurance can be given that any of the eventsanticipated by the forward-looking statements will transpire or occur,or if any of them do so, what benefits the Company will derive fromthem. These forward-looking statements are made as of the date of thispress release, and, other than as required by applicable securitieslaws, the Company disclaims any intent or obligation to updatepublicly any forward-looking statements, whether as a result of newinformation, future events or results or otherwise. Neither the TSXVenture Exchange nor its Regulation Services Provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
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