Stone Gold Announces LOIs for the Acquisition of the East Breccia and Tribag Mine Properties in Batchewana Bay, Ontario
February 09 2021 - 7:00AM
Stone Gold Inc. (
TSX-V: STG) ("
Stone
Gold" or the "
Company") is pleased to
announce that it has entered into two non-binding letters of
intents (the “
LOIs”) with current claims holders
to earn a 100% interest in certain mineral claims in Batchewana
Bay, Ontario making up the East Breccia property and the Tribag
Mine property (collectively, the “
Properties”),
respectively.
The transactions contemplated by the LOIs will
provide Stone Gold the option to acquire:
- a 100%
interest in the East Breccia property, over a 48 month period, by
making total cash payments of $165,000 to the current claims
holders (the “Vendors”), issuing a total of
800,000 common shares of the Company (“Common
Shares”) to the Vendors, incurring cumulative exploration
expenditures of $300,000, and granting of a 2% net smelter royalty,
all in amounts and in accordance with timeframes to be negotiated
and determined by the parties prior to executing a binding,
definitive agreement respecting the transaction upon Stone Gold
completing its due diligence investigations; and
- a 100%
interest in the Tribag Mine property, over a 48 month period, by
making total cash payments of $75,000 to the Vendors, issuing a
total of 1,500,000 Common Shares to the Vendors, incurring
cumulative exploration expenditures of $400,000, and granting of a
2% net smelter royalty, all in amounts and in accordance with
timeframes to be negotiated and determined by the parties prior to
executing a binding, definitive agreement respecting the
transaction upon Stone Gold completing its due diligence
investigations.
The validity and exclusive dealings of the LOIs
will remain in force until February 26, 2021. The Vendors are
entirely arm’s length from the Company.
The East Breccia and former Tribag Copper Mine
properties, a combined 3,390 hectares, encompass multiple copper
rich breccia bodies some of which were mined in the late 1960s to
early 1970s with an official stated production of 1,218,000 tons
grading 1.52% Cu. The breccia bodies are part of a series of known
copper deposits containing historic resources and numerous showings
trending west southwest onto the Company's Coppercorp
Property including the Richards Breccia, Jogran Porphyry, Kincaid
Breccia and the historic Coppercorp Mine which reported production
of 1.02 million tons grading 1.16% copper, plus silver and gold
credits from 1965 to 1972. The value of the Tribag and East Breccia
properties deposits is enhanced by the discovery of
significant values of silver, tungsten, molybdenum, rhenium and
gold associated with the mineralized bodies which have not been
properly investigated to date.
The acquisition is accompanied by a voluminous
historic database, when combined with the Coppercorp and Glenrock
data, the Company has a unique opportunity to compile an integrated
district scale three-dimensional exploration model for the
Batchewana Mining District. The Company plans to implement new
techniques and apply current technologies never utilized in this
district. The purpose is to generate a focused drill test program
that will delineate world class base and precious metal resources
for further development.
Stone Gold President and CEO John Timmons
states, “The consolidation of the Batchewana Bay greenstone belt is
long overdue. We look forward to working with all stakeholders to
explore for and develop natural resources in a mutually beneficial
and sustainable manner.
“Additionally, the Company has staked 35 claim
units linking the Coppercorp Property to the East Breccia and
Tribag claims resulting for the first time in the creation of a
contiguous claims package in the Batchewana Bay greenstone belt
totalling approximately 21,400 hectares. This enlarged district
scale Cu-Ag-W-Mo-Re-Co-Au property package represents an exciting
opportunity to revive the Batchewana Bay mining district.”
The information in this press release has been
reviewed and approved by Trevor Boyd, P. Geo., and a Qualified
Person for the technical information under NI 43-101 standards.
The acquisition of the Properties is subject to
approval of the TSX Venture Exchange and the Common Shares issuable
in connection therewith will be subject to a statutory four month
and a day hold period.
For further information, please contact:Mr. John
TimmonsPresident & CEOStone Gold Inc.Cellular (416) 931
2243Email: jtimmons@stonegold.caWeb: www.stonegold.ca
Stone Gold Inc. is engaged in the acquisition,
exploration and evaluation of properties for the mining of precious
and base metals.
Caution Regarding Forward-Looking
InformationThis news release contains forward-looking
information that involves substantial known and unknown risks and
uncertainties, most of which are beyond the control of Stone Gold.
Forward-looking statements include estimates and statements that
describe Stone Gold's future plans, objectives or goals, including
words to the effect that Stone Gold or its management expects a
stated condition or result to occur. Forward-looking statements may
be identified by such terms as "believes", "anticipates",
"expects", "estimates", "may", "could", "would", "will", or "plan".
Since forward-looking statements are based on assumptions and
address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Although these statements
are based on information currently available to Stone Gold, Stone
Gold provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release
includes, but is not limited to, Stone Gold's objectives, goals or
future plans, statements, details of the exploration results,
potential mineralization, Stone Gold's portfolio, treasury,
management team and enhanced capital markets profile, the timing of
the Offering, the estimation of mineral resources, exploration and
mine development plans, timing of the commencement of operations
and estimates of market conditions. Factors that could cause
actual results to differ materially from such forward-looking
information include, but are not limited to, failure or inability
to complete the Offering, regulatory approval processes, failure to
identify mineral resources, delays in obtaining or failures to
obtain required governmental, regulatory, environmental or other
project approvals, political risks, inability to fulfill the duty
to accommodate First Nations and other indigenous peoples,
uncertainties relating to the availability and costs of financing
needed in the future, changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices, delays in the
development of projects, capital and operating costs varying
significantly from estimates and the other risks involved in the
mineral exploration and development industry, and those risks set
out in Stone Gold's public documents filed on SEDAR. Although Stone
Gold believes that the assumptions and factors used in preparing
the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. Stone Gold disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this news
release.
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