VANCOUVER, BC, Nov. 25, 2020 /PRNewswire/ – Trillium Gold Mines Inc. (TSXV: TGM) (US: TGLDF) (FRA: 0702) (“Trillium Gold” or the “Company”) is pleased to announce it has entered into a binding agreement with Heliostar Metals Limited (TSX.V:HSTR, US:RGCTF, FRA:RGG) (“Heliostar”) to purchase HelioStar’s 16.5% interest in the Newman Todd property located in the Red Lake district of Ontario.
Newman Todd sale
Trillium Gold and Heliostar have worked together recently to confirm their respective ownership percentages in the Newman Todd property joint venture. Heliostar received an offer for its 16.5% ownership stake from a third party in September and Trillium Gold, which held a right of first refusal pursuant to the terms of the parties’ joint venture agreement, has decided to exercise that right of first refusal. The parties have agreed that Heliostar will sell its 16.5% interest to Trillium Gold on the following commercial terms;
- Trillium Gold shall pay Heliostar a C$700,000 cash payment,
- Trillium Gold will issue to Heliostar 650,000 Trillium Gold common shares from treasury (using the closing price for Trillium Gold shares on the TSX Venture Exchange for November 24, 2020, these shares have a market value of C$1,001,000), and
- If at any point after the transaction completes there is 1,000,000 or more ounces of gold in measured and indicated reserves and resources on the Newman Todd property, Trillium Gold shall make an additional C$1,000,000 cash payment to Heliostar.
The transaction is subject to approval by the TSX Venture Stock Exchange.
Russell Starr, CEO of Trillium Gold comments “Owning a 100% interest in the Newman Todd structure is a crucial acquisition and consistent with our view of maximizing shareholder value through a growth-oriented precious metals exploration company focused in the Americas. We will soon emerge as the one of largest land holders in the Red Lake Gold Camp having acquired some of the most highly perspective property packages in recent months.”
The Project hosts the Newman Todd Structure, a narrow structural body that is defined in part by a distinct unconformity. The rocks of the structure are hydrothermally altered and brecciated. Gold mineralization is often associated with the altered breccia zones and occurs as both free gold in quartz veins and in gold-bearing pyrite, pyrrhotite and sphalerite.
The project is located in the high grade gold capital of Canada – Red Lake, Ontario. Drill programs undertaken in the past, as well as recent results from the 2020 summer program, have shown some exciting high grade gold intersections on the Property, and mineralization remains open along strike and to depth.
The technical information presented in this news release has been reviewed and approved by William Paterson QP, PGeo, VP of Exploration of Trillium Gold Mines, as defined by NI 43-101.
Information contained in Trillium Gold’s press release of November 13, 2020 with respect to the third party that made the initial offer to Heliostar was derived from publicly accessible filings in Australia. Trillium Gold recognizes these may not represent the current status or valuation of such third party.
On behalf of the Board of Directors,
Trillium Gold Mines Inc.
President, CEO and Director
Trillium Gold Mines Inc. is a British Columbia based company engaged in the business of acquisition, exploration and development of mineral properties located in the highly prospective Red Lake Mining District of Northern Ontario.
Completion of the transaction is subject to a number of conditions, including TSX Venture Exchange acceptance. The transaction cannot close until the required conditions are satisfied and required approvals are obtained. There can be no assurance that the transaction will be completed as proposed or at all. Trading in the securities of the Company should be considered highly speculative. The TSX Venture Exchange has not reviewed or approved the terms to the Transaction.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Trillium Gold Mines Inc.