Symbol: TSX-V: CLM
VANCOUVER, Dec. 3, 2018 /CNW/ - Crystal Lake Mining
Corporation (the "Company" or "Crystal Lake Mining") is
pleased to announce that it has finalized an agreement with Romios
Gold Resources Inc. (refer to September 24,
2018, news release) to acquire a 100% interest in the 436
sq. km Newmont Lake Project in the heart of the Golden Triangle,
immediately south of Galore Creek (Newmont and Teck) and
north-northwest of key projects in Northwest B.C.'s highly active
Eskay Camp. The agreement is
subject to the approval of the TSX Venture Exchange.
Dr. Peter Lightfoot, Crystal Lake
Technical Adviser, commented: "Our excitement regarding this
project has only intensified over the past two months. We're
also eagerly anticipating assay results from a total of six reverse
circulation drill holes completed by Crystal Lake during the last half of October
at Burgundy Ridge and the Northwest Zone gold system. Icn
addition, extensive sampling was carried out by Romios' crews over
parts of the project area during the summer. We look forward
to presenting those results and looking ahead to 2019.
"It's a rare opportunity to be able to advance such a
prospective land package in the world's next great mining camp,"
Dr. Lightfoot concluded.
Newmont Lake Project Highlights:
- Vastly under-explored district-scale land package with
multi-commodity potential in the heart of the Eskay Rift;
- 22 documented mineral occurrences adjacent to the high-grade
Northwest gold zone (historic resource) which is open for
expansion;
- Major new infrastructure improvements in the region (roads,
bridges, power, AltaGas camp) have enhanced access and will
accelerate the discovery process.
The Deal
To acquire a 100% interest in the 436 sq. km Newmont Lake
Project, Crystal Lake must
complete the following:
- $8 million in exploration
expenditures at Newmont Lake over the next three years
($3 million in Year 1 and
$2.5 million in each of Years 2 and
3. A total of $508,914 in
expenditures made by Crystal Lake
since October, subject to verification, will be credited toward the
Year 1 commitment through September 20,
2019);
- $2 million in cash option
payments to Romios as follows: $250,000 on signing of Letter Agreement (paid)
and a further $250,000 payable on
each of 90 days, 180 days and 270 days following regulatory
approval of transaction; a final $1
million payment upon Crystal
Lake earning its 100% interest;
- A total of 12 million shares of Crystal Lake will be
distributed to Romios over a three-year period – 4 million each
year, with the first 4 million shares issued following regulatory
approval of the transaction (subject to normal hold period and a
"lock up" provision).
Crystal Lake will be the
operator during the earn-in period, which it can accelerate at its
discretion, and Romios will have the right to appoint one director
to the CLM board.
Romios will retain a 2% Net Smelter Returns Royalty (NSR) on the
Newmont Lake Project, or on any after-acquired claims within a 5 km
radius of the current boundary of the project, which may be reduced
at any time to a 1% NSR on the payment of $2
million per 0.5% NSR.
Crystal Lake will issue two
million bonus shares to Romios in the event one or more NI-43-101
resource estimates collectively exceed one million ounces of gold
equivalent resources in the Indicated and Inferred categories, and
an additional one million bonus shares for each full one million
additional ounces of gold equivalent resources which is so
documented.
Qualified Person
The technical information in this news release has been reviewed
and approved by Dr. Peter C.
Lightfoot, P.Geo., a Qualified Person responsible for the
scientific and technical information in this news release under
National Instrument 43-101 standards.
About Crystal Lake Mining
Crystal Lake Mining is a Canadian-based junior exploration
company focused on building shareholder value through the discovery
of new magmatic nickel sulfide deposits and other deposit types
using technical excellence in exploration target development.
On behalf of The Board of Directors
of Crystal Lake Mining
Corporation,
Richard
Savage, President & CEO
This news release may contain certain "forward looking
statements". Forward-looking statements involve known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Any forward-looking statement speaks only as of the
date of this news release and, except as may be required by
applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking statement, whether as a
result of new information, future events or results or
otherwise.
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.
SOURCE Crystal Lake Mining Corporation