Clarity GOLD to Acquire the Destiny Project Located in the Abitibi Region
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THE UNITED STATES
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Vancouver, B.C. (CSE: CLAR, OTC: CLGCF, FSE: 27G)
CLARITY GOLD TO ACQUIRE THE DESTINY PROJECT LOCATED IN THE ABITIBI
REGION
Vancouver, BC – November 30, 2020, Clarity Gold Corp. (“Clarity” or the “ Company”) (CSE: CLAR, OTC:
CLGCF, FSE: 27G) is pleased to announce that it has entered into an option agreement
(the “Option Agreement”) dated November 27, 2020 pursuant to which the Company has been granted
the sole and exclusive option (the “Option”) by Big Ridge Gold Corp. (“Big Ridge”) (TSX-V: BRAU), an arm’s
length company whose common shares are listed on the TSX Venture Exchange, to acquire up to 100% of
Big Ridge’s right, title and interest in and to certain mineral claims located in the Province of Quebec
known as the “Destiny Project” (the “Transaction”).
Highlights of the Destiny Project1
• Located in the historical, mineral rich Abitibi Greenstone Belt.
• Gold mineralization occurs in high-grade quartz veins within shear zones starting at 15 m below
surface (drill results include 167g/t Au over 1 m).
• 2011 NI 43-101 indicated resource of 360,000 oz and an inferred resource of 247,000 oz.
• Mineralization is open to depth and along strike.
• The DAC deposit is open along strike with only coarse drilling denoting high grade intercepts
outside of 2011 resource area showing expansion potential along strike from the DAC Deposit
over approximately 2.5 km to the Darla Zone.
• Excellent infrastructure: ~75 km NNE of Val d’Or with road access.
• Considerable work done to date including over 50,000 m of diamond drilling.
“This is a substantial step forward for Clarity. The acquisition of the Destiny Project will mark a
transformational first step for the Company into the prolific Abitibi Greenstone belt,” stated Clarity’s CEO,
James Rogers. “Our team at Clarity has reviewed countless projects and we are excited to focus our efforts
on a project that has high grade, underground potential with underpinning Indicated and Inferred ounces
in the ground. We look forward to working with Big Ridge to complete the Transaction and get to work
on advancing this exciting project.”
1 Information extracted from the Technical Report, dated March 1, 2011, authored by, Todd McCracken, P. Geo.,
and filed by Big Ridge on Sedar on March 7, 2011.
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The Destiny Project
The Destiny Project is located approximately 75 km northeast of the city of Val d’Or in the prolific Abitibi
Greenstone Belt where more than 180 million ounces of gold have been produced historically along major
structural breaks within the assemblage of A rchean-age volcanic, sedimentary and intrusive rocks. The
Destiny Project lies along the approximately 400 km long Chicobi Deformation Zone, a major structural
break which is largely underexplored in the Abitibi Greenstone Belt. The 5,013 ha project includes the DAC
deposit, one of several gold zones along an approximately 6 km long segment of the Despinassy Shear
Zone within the Chicobi Deformation Zone.
Approximately 2.5 km east along strike of the DAC deposit is the Darla zone. In between the Darla and
DAC is the coarsely drilled GAP zone where 2012 drilling intercepted anomalous gold in all 12 holes which
were spaced 100 m apart.
Exploration of the Destiny Project dates back to the 1930s with the first serious diamond drilling campaign
commencing in 19 98 by Cameco. Continued exploration and drilling campaigns supported a maiden NI
43-101 resource estimation being authored in 2007 and the most recent NI 43 -101 resource estimation
in 2011 in the Technical Report, dated March 1, 2011, authored by, Todd McCracken, P. Geo., and filed by
Big Ridge on Sedar on March 7, 2011 (the “ 2011 Technical Report ”). Since the publishing of the 2011
Technical Report, only 15 drill holes totaling approximately 3,473 m were completed as well as
geochemical surveys and a geophysical compilation targeting VMS mineralization.
Previous work on the property can be summarized as follows:
• 172 Diamond drill holes comprising approximately 50,400 m
• Reconnaissance till sampling from 11 Sonic drill holes
• 2,430 MMI geochemical samples
• 982 line km of airborne VTEM surveys
• 171 line km of ground magnetics surveys
• 128 line km of IP
Salient results from previous drill programs on the Destiny Project:
Zone Hole ID From (m) To (m) Interval (m) Au g/t
DAC
DES9917 117.2 140.8 23.6 6.15
including 118.8 121.9 3.1 23.95
and 134.8 138.5 3.7 12.46
DES0032 159.9 169.2 9.3 3.98
including 161.2 165.9 4.7 5.37
and 163.3 165.9 2.6 7.78
DES05-64 161.8 170.5 8.7 5.42
including 161.8 163.2 1.4 22.14
DES05-66 130.3 133.1 2.8 5.18
and 138.3 139.3 1.0 3.37
and 142.2 143.6 1.4 8.83
DES05-67 163.7 170.9 7.2 8.81
including 166.0 168.7 2.7 19.49
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DES05-79 130.6 133.1 2.5 10.70
and 142.0 145.0 3.0 5.04
DES05-81 323.7 325.8 2.1 3.41
and 333.7 339.0 5.3 4.01
including 333.7 338.5 4.8 4.32
DES06-85 214.0 216.5 2.5 4.31
and 221.7 222.7 1.0 167.00
DES06-96 254.4 261.2 6.8 2.46
and 272.7 275.7 3.0 3.04
DES10-137 372.9 374.0 1.1 25.65
Darla
DES06-91 115.1 117.2 1.2 19.67
DES08-104 104.5 107.0 2.5 6.73
including 104.5 105.2 0.7 19.73
Gap
DES12-147 85.5 91.5 6.0 16.10
including 87.5 88.5 1.0 90.30
and 146.0 148.0 2.0 2.55
West
DES05-75 79.8 80.5 0.7 3.36
and 82.7 84.2 1.5 1.50
and 90.3 91.8 1.5 1.23
South
DES0051 308.6 309.9 1.3 2.22
DES0056 49.0 49.2 0.2 3.03
and 144.6 145.3 0.7 1.69
and 319.0 319.2 0.2 2.23
Zone 21 DES9921 93.8 99.8 6.0 2.49
including 93.8 94.8 1.0 7.03
Zone 20 DES9920 218.4 220.4 2.0 4.60
The DAC Deposit
The 2011 Technical Report entitled “NI 43 -101 Technical Report and Resource Estimate of the DAC
Deposit, Destiny Property, Quebec” included the following estimates:
Class Tonnes Au (gpt) Au (ounces)
Indicated 10,800,000 1.05 360,000
Inferred 8,300,000 0.92 247,000
Notes:
- The 2011 Technical Report was prepared for Alto Ventures Ltd. (now Big Ridge) and Pacific Northwest Capital Corp.
- Values rounded to reflect summary nature of the estimate
- Cut-off grade 0.5 g/t Au
- Au price of US$973/Oz
- US$ to CAD$ conversion of 1.02
- Au recovery 94%
- 4:1 Strip ratio
- Operating cost of $14.30/t at 10,000 tpd
Michel Robert, Advisor to Clarity stated: “The Abitibi is known for its high mineral potential, it’s a
recognized region in Canada and internationally. I have previously worked in several active projects in the
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region, now I am excited to return to this highly prospective area with solid infrastructure and formidable
local support for resource development. Destiny is in an advanced exploratory stage with a n NI 43-101
indicated resource, and with multiple underexplored zones which makes for untapped exploration
potential. At Clarity, we look forward to start ing work and further defining this resource to become
another success in the region.”
About the Option Agreement
Under the Option Agreement, Big Ridge has granted the Option to the Company which may be exercised
by the Company on or prior to the third anniversary of the closing of the Transaction (the “Closing”) by
making the following cash payments and issuances of common shares of the Company
(each, a “Clarity Share”) on or before the dates indicated below:
Payment Date
Cash Payment
Amount
Share Issuance $
Amount Interest Earned
Previously paid on execution of
the letter of intent between the
parties dated October 29, 2020
$50,000 - -
Within 60 days of the execution
of the Option Agreement $450,000 $1,000,000 -
12 months from the date of the
Option Agreement $750,000 $1,000,000 -
24 months from the date of the
Option Agreement $750,000 $1,500,000 49% earned
36 months from the date of the
Option Agreement $1,000,000 $2,000,000 100% earned
Total: $3,000,000 $5,500,000
The Company may accelerate the exercise of the Option by making the cash payments and issuances of
Clarity Shares earlier than the timeframes contemplated above. The number of Clarity Shares to be issued
to Big Ridge pursuant to the Option will be determined by dividing the dollar amount of Clarity Shares to
be issued at any point in time by the five (5) day volume weighted average closing price of the Clarity
Shares on the day before such issuance of such Clarity Shares, subject to the policies of the CSE.
Concurrently with the exercise of the Option, Clarity has agreed to grant to Big Ridge a 1.0% net smelter
return royalty (the “Royalty”) with respect to production of all precious metals from the Destiny Project,
with the Royalty to be payable by Clarity following comme ncement of commercial production. The
Company has the right to buy back the Royalty during the first three (3) years following the
commencement of commercial production on payment by Clarity to Big Ridge of $1,000,000. Exercise of
the Option is subject to receipt of all applicable regulatory approvals and consents. The Company will be
the operator responsible for carrying out all operations with respect to the Destiny Project during the
term of the Option Agreement. If Clarity acquires a 49% interest in th e Property and decides not to
proceed with the acquisition of the further 51% interest in the Property, then, for a period of 18 months
following such time, Big Ridge will have the right to purchase back the 49% interest in the Property for
cash consideration of $2,000,000. Clarity has agreed to pay a finders ’ fee equal to 3% of the aggregate
consideration payable to Big Ridge. Closing of the transactions contemplated under the Option Agreement
is subject to the typical customary conditions, including receipt of all regulatory approvals.
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Private Placement
The Company also announces a non-brokered private placement financing (the “Offering”) of units of the
Company (each, a “Unit”) at a price of $0.96 per Unit. The Company intends to issue 3,125,000 Units for
gross proceeds of $3,000,000 but may issue up to 10,000,000 Units of the Company for gross proceeds of
up to $ 9,600,000. Each Unit will consist of one common share (each, a “ Share”) and one -half of one
transferable warrant (each whole warrant, a “Warrant”), with each Warrant entitling the holder thereof
to purchase one additional Share at a price of $1.25 per Share for a period of one year from closing of the
Offering.
Completion of the Offering is subjec t to a number of conditions, including, without limitation, receipt of
all necessary regulatory approvals. Insiders of the Company may participate in the Offering and finders’
fees may be paid in connection with the Offering. The net proceeds of the Offering will be used for the
required payments and exploration expenditures in connection with the Option with respect to the
Destiny Project, for exploration to advance the understanding of the Company’s other mineral exploration
properties, marketing, costs of operations and general working capital.
All securities issued in connection with the Transaction and the Offering will be subject to a hold period
of four months and one day from the date of issuance in accordance with applicable securities legislation.
None of the securities issued in the Transaction and the Offering will be registered under the United States
Securities Act of 1933 , as amended (the “ 1933 Act”), and none of them may be offered or sold in the
United States absent registration or an applicable exemption from the registration requirements of the
1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall
there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
Qualified Person
Mr. Rory Kutluoglu P. Geo. is the Qualified Person (“QP”) under NI 43-101 for the technical information in
this news release and has reviewed the appropriate and available data for the Destiny Project and
approves the technical contents of this news release.
About Clarity
Clarity Gold Corp. is a Canadian mineral exploration company focused on the acquisition, exploration and
development of gold projects in Canada. The Company has entered into an option agreement to purchase
100% of the Destiny Project, a 5,013 ha gold-focused project in the mineral rich Abitibi region in Quebec.
Clarity is also working on the exploration of its 10,518 ha Empirical Project located approximately 12 km
south of Lillooet, BC, and has recently expanded its mineral property portfolio with the acquisitions of the
Tyber and Gretna Gre en projects, both located on Vancouver Island, British Columbia . The Company is
based in Vancouver, British Columbia, and is listed on the CSE under the symbol “ CLAR”. To learn more
about Clarity Gold Corp. and its projects please visit www.claritygoldcorp.com.
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ON BEHALF OF THE BOARD
“James Rogers”
Chief Executive Officer
Tel: 1 (833) 387-7436
Email: [email protected]
Website: www.claritygoldcorp.com
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. All statements, other than statements of historical fact that
address activities, events or developments that the Company believes, expects or anticipates will or may occur in the
future are forward -looking statements. Forward -looking statements in this news r elease include statements
regarding: the Transaction and the terms thereof; that the acquisition of the Destiny Project will mark a
transformational first step for the Company into the Abitibi Greenstone belt ; that the Company will exercise the
Option; that the Company will complete the Offering; and the intended use of the proceeds of the Offering . The
forward-looking statements reflect management’s current expectations based on information currently available and
are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed
in the forward-looking statements including: that the Company may not be able to satisfy the conditions to exercise
the Option; the inability of the Company to complete the Off ering at all or on the terms announced ; adverse market
conditions; and other factors beyond the control of the parties. Although the Company believes that the assumptions
inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future
performance and, accordingly, undue reliance should not be put on such statements due to their inherent uncertainty.
Factors that could cause actual results or events to differ materially from current expectations include general market
conditions and other factors beyond the control of the Company. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements whether as a result of new information, future events
or otherwise, except as required by applicable law.
The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the
contents of this press release.