AUGC to Acquire 100% Ownership of Ponderosa Gold Project
AU GOLD CORP.
NR1-2023
AUGC to Acquire 100% Ownership of Ponderosa Gold Project
Vancouver, British Columbia — February 7, 2023 – Au Gold Corp . (TSXV: AUGC) (“AUGC” or the
“Company”) is pleased to announce it has entered into a purchase and sale agreement (the
“Agreement”) with Almadex Minerals Ltd. (“ Almadex”) (TSXV: DEX) whereby the Company will
acquire Almadex’s forty percent (40%) ownership of the Ponderosa Gold Project, located in the
Nicola Mining Division, British Columbia (the “Acquisition”). Completion of the Acquisition will bring
the Company to 100% ownership of the Ponderosa Gold Project. The Company previously acquired
60% ownership of the Ponderosa Gold Project pursuant to an option agreement dated September
6, 2019 with Almadex (the “Option Agreement”).
“We are very pleased to consolidate our ownership of the central claim at Ponderosa ” said the
Company’s President and CEO, Marc G. Blythe “The team is excited to continue our low -cost
exploration at Ponderosa during 2023.”
About the Ponderosa Gold Project
The Ponderosa Gold Property is located 16 km southwest of Merritt, BC, within the Spences Bridge
Gold Belt which forms a northwest trending belt roughly 180 km long and up to 24 km wide.
Exploration by AUGC and others, no tably Westhaven Gold Corp. (TSXV: WHN.V), has identified the
potential for gold associated with low -sulphidation epithermal mineralization (quartz -adularia).
Examples of this style of mineralization include Waihi (Oceanagold), Hishikari (Sumitomo Metal
Mining) and Fruta Del Norte (Lundin Gold).
Rocks of immediate interest in the belt and underlying much of the Property comprise successions
of Cretaceous subaerial and pyroclastic volcanic flows which host significant gold mineralization at
Westhaven Gold Corp.’s Shovelnose project approximately 20 km southeast of the Ponderosa Gold
Property. Geology across the Ponderosa Gold Property claim group is broadly divided into two
Cretaceous age volcanic sequences comprising subaerial and pyrocla stic volcanic flows of the
Pimainus and Spius Formations.
The Ponderosa Gold Property is located within the unceded traditional territory of the Nlaka’pamux
People.
Further information on the Property can be found on the Company’s website:
https://www.augoldcorp.com/ponderosa-property/.
Transaction Details
Pursuant to the Agreement, the Company will acquire Almadex’s forty percent (40%) ownership of
the Ponderosa Gold Project and terminate the Option Agreement, in consideration for which the
Company will:
(i) issue to Almadex a total of 750,000 common shares in the capital of the Company (the
“Consideration Shares”) upon closing of the Acquisition;
(ii) grant to Almadex a two percent (2%) net smelter returns royalty in relation to the Ponderosa
Gold Project on terms more particularly set out in a royalty agreement to be entered into in
connection with the closing of the Acquisition; and
(iii) issue to Almadex a total of 500,000 common shares in the capital of the Company (the
“Contingent Shares”) conditional upon the defining of a Mineral Resource (as such term is
defined by the Canadian Institute of Mining, Metallurgy and Petroleum) on the Ponderosa Gold
Project of at least 250,000 ounces of gold.
The Agreement is subject to the approval of the TSX Venture Exchange.
Qualified Person Statement
All scientific and technical information in this press release has been prepared by William
Wengzynowski, P. Eng., a qualified person as defined by NI 43 -101. Mr. Wengzynowski is the
Exploration Manager for the Company.
Au Gold Corp.
Marc G. Blythe, MBA, P.Eng., President & Chief Executive Officer
Sandrine Lam, Investor Relations Phone: 1-604-687-3520 Ext. 250
Email: [email protected]
To learn more visit: https://www.augoldcorp.com
Forward Looking Information
Certain statements made, and information contained herein may constitute "forward looking
information" and "forward looking statements" within the meaning of applicable Canadian
and United States securities legislation. All statements in this news release, other than statements
of historical facts, including statements regarding future estimates, plans, objectives, timing,
assumptions or expectations of future performance, including without limitation, the statement
that the Company intends to complete the Acquisition and all actions in connection with the
Acquisition are forward -looking statements and contain forward- looking information. These
statements and information are based on facts currently available to the Company and there is no
assurance that act ual results will meet management's expectations. Forward- looking statements
and information may be identified by such terms as "anticipates", "believes", "targets",
"estimates", "plans", "expects", "may", "will", "could" or "would". Forward -looking statements and
information contained herein are based on certain factors and assumptions regarding, among
other things, the closing of the A cquisition, the receipt of regulatory approvals for the Acquisition
and other matters. While the Company considers its assumptions to be reasonable as of the date
hereof, forward-looking statements and information are not guaranteeing of future performance
and readers should not place undue importance on such statements as actual events and results
may differ materially from those described herein. The Company does not undertake to update any
forward-looking statements or information except as may be required by applicable securities laws.
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.