Leocor Gold signs LOI to acquire Hare Bay Resources Corp.
Leocor Ventures Inc.
Suite 303, 750 West Pender Street
Vancouver, BC V6C 2T7
LEOCOR GOLD SIGNS LOI TO ACQUIRE
HARE BAY RESOURCES CORP.
Vancouver, British Columbia – December 4, 2020 - Leocor Gold Inc. (the “Company” or
“Leocor”) (CSE: LECR) is p leased to announce that it has entered into a letter of intent
dated November 30, 2020 (“ LOI”) with Hare Bay Resources Corp. (“ Hare Bay”), pursuant
to which the Company will acquire 100% of the issued and outstanding common shares in
the capital of Hare Ba y (the “ Hare Bay Shares ”) in exchange for common shares of the
Company (“ Company Shares”) at a ratio of one Company Share for every one Hare Bay
Share (the “ Proposed Transaction ”). Upon closing, it is expected that the Company will
issue approximately 4,750,001 Company Shares to shareholders of Hare Bay.
Hare Bay owns an option to acquire 70% of the 6,847 -hectare Star Trek Gold Project,
located in Central Newfoundland (the “ Project”). The Project is located in the Gander
Zone geological group, in rocks si milar to those underlying New Found Gold Corp.’s
Queensway Gold Project located 25 km to the west.
“We’re going to get into some due diligence and evaluate the data, but t his potential
acquisition would give us a sizeable presence in a real area of intere st for us,” said CEO
Alex Klenman. “One of our goals is to expand Leocor’s footprint into other prospective
areas in Newfoundland, and we think this acquisition would make an excellent strategic
addition to our Atlantic Canada portfolio,” continued Mr. Klenman.
The P roject contains three areas of interest, the Western, Central and Eastern Zones.
More than 50 gold occurrences have been discovered on the property through previous
trenching and grab samples. The Western Zone features gold mineralization out lined for
2km, with grab samples ** up to 3.5 grams-per-tonne (“g/t”) gold (“Au”) in quartz stock
work, with veins featuring epithermal features, arsenopyrite and trace amounts of stibnite
(see White Metal Resources Corp. (“White Metal”) news release s dated December 18,
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2019 and July 30, 2019) . T he Eastern Zone has been traced for 2km and displays
characteristics of hydrothermal alteration, with silicification, albite, and tourmaline. The
Central Zone has seen trenching by Rubicon Minerals, which focused on gold showings
hosted in epithermal vein system, and which produced highly anomalous values of gold,
arsenic and antimony . S ubsequent sampling by White Metal which produced grab
samples** up to 40 g/t Au (see White Metal ’s news release dated July 30, 2019) . **The
surface gr ab samples described in this news release are selective by nature and are
unlikely to represent average grades of the Project.
In December 2019, White Metal completed a 402 line -kilometre, fixed -wing, high -
resolution aeromagnetic gradiometer, and digital VLF-EM survey. The airborne survey
mapped new and refine d known geological structures (faults and shear zones) of which
northeast-trending structures are known to host gold and antimony mineralization. The
survey defined several new struc tures, including a series of secondary east -west trending
structures, and numerous bedrock conductor s. Together with historical data, this new
information generated new targets for ground truthing and follow-up exploration.
The Proposed Transaction is subject to a number of conditions precedent set forth in the
LOI, including: (i) satisfactory completion of due diligence investigations by each of Hare
Bay and the Company before the Exclusivity Termination Date (as defined belo w); (ii)
negotiation and exec ution of a definitive agreement before the Exclusivity Termination
Date; (iii) receipt of all required consents and approvals, including any required approvals
of the Canadian Securities Exchange (the “ CSE”); (iv) there being n o amounts owing to
either party by any person not at arm’s length to such party; and (v) each party being in
material compliance with the terms of the LOI.
Pursuant to the LOI, the parties mutually covenant and agree to a period of exclusive
dealing and non-solicitation commencing on the effective date of the LOI and ending on
January 31, 2021 (the “ Exclusivity Termination Date”). Other than this and certain other
provisions related to termination of the LOI, the LOI is not binding and the parties are not
bound to complete the Proposed Transaction on the terms set out herein or at all.
The scientific, technical and historical information in this news release is taken from White
Metal’s news releases dated October 14, 2020, December 18, 2019 and July 30, 20 19,
copies of which are available under White Metal’s SEDAR profile.
The scientific and t echnical information in this news release has been reviewed and
approved by Wayne Reid, P. Geo., a director of the Company, who is a Qualified Person as
defined in National Instrument 43-101.
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About Leocor Gold Inc.
Leocor Gold Inc. is a British Columbia -based resource company involved in the acquisition
and exploration of precious metal projects, with a current focus in Atlantic Canada.
Leocor is a reporting issuer i n British Columbia, Alberta an d Ontario, and has its common
shares listed for trading on the Canadian Securities Exchange under the symbol "LECR".
Leocor, through outright ownership and earn-in agreements, currently controls over 1600-
hectares of prime exploration ground in the prolific Baie Verte Mining District, proximal to
known deposits and currently producing mines, including Anaconda Mining’s Pine Cove
Mine and Stogertite deposit, and Rambler Metals’ Ming Mine.
Contact Information
Leocor Gold Inc.
Alex Klenman, Chief Executive Officer
Email: [email protected]
Telephone: (604) 970-4330
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking information within the meaning of Canadian securities
laws. Such information includes, without limitation, information regarding the terms and
conditions of the Proposed Transaction. Although Leocor believes that such information is
reasonable, it can give no assurance that such expectations will prove to be correct. Forward
looking information is typically identified by words such as: “believe”, “expect”, “anticipate”,
“intend”, “estimate”, “postulate” and similar expressions, or are those, which, by their nature, refer
to future events. Leocor cautions investors that any forward-looking information provided by
Leocor is not a guarantee of future results or performance, and that actual results may differ
materially from those in forward looking information as a result of various factors, including, but
not limited to: the agreement of the parties to proceed with and complete the Proposed
Transaction on the terms set out in the LOI or at all; the state of the financial markets for Leocor's
securities; recent market volatility; circumstances related to COVID-19; and other risks and factors
that Leocor is unaware of at this time.
The forward-looking statements contained in this press release are made as of the date of this
press release. Leocor 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 law.