Frankfurt and Berlin Exchanges : EMLM Emgold to Sell its East-West Property, QC to O3 Mining Inc.
EMGOLD MINING CORPORATION
Suite 1010 – 789 West Pender Street
Vancouver, B.C. V6C 1H2
www.emgold.com
March 15, 2022 TSX Venture Exchange : EMR
OTCQB : EGMCF
Frankfurt and Berlin Exchanges : EMLM
Emgold to Sell its East-West Property, QC to O3 Mining Inc.
Vancouver, British Columbia, March 15, 202 2 – Emgold Mining Corporation (TSXV:EMR,
OTC:EGMCF, FRA:EMLM, BSE:EMLM) (“Emgold” or the “Company ”) announces it has signed a
Binding Letter Agreement (the “LOI ”) to sell 100% of its interests, rights, and title to its East-West
Property, Q uebec to O3 Mining Inc. (“O3”) (TSXV: OIII). As consideration for the acquisition of
Emgold’s interest in the East West Property (the “Transaction”), O3 will:
(i) pay to Emgold cash consideration of C$750,000 at closing;
(ii) issue to Emgold an aggregate of 325,000 common shares in the capital of O3 (the " Share
Consideration") at closing; and
(iii) grant to Emgold a 1% net smelter returns ("NSR") royalty over the East West Property in favour
of Emgold (the "Royalty"), which shall be subject to a buy-back right in favour of O3 (the "Buy-
Back Right"), whereby O3 may elect to buy back the Royalty for: (i) C$500,000 if the Buy-
Back Right is exercised within the first three years from the date of the Definitive Agreement
(as defined herein); (b) C$1,000,000 if the Buy-Back Right is exercised within the fourth and
fifth years from the date of the Definitive Agreement.
For greater certainty, subsequent to the fifth anniversary date of a Definitive Agreement for the Transaction,
the Royalty will no longer be subject to the Buy-Back Right. The Transaction is subject to due diligence
by O3, completion of a Definitive Agreement as soon as possible, but no later than March 31, 2022, and
any necessary regulatory approvals.
The East-West Property consist s of 7 mining claims covering an area of 184 hectares, located in the Val
d’Or Mining Camp adjacent to and east of O3 Marban Property. O3 is in the process of completing a Pre-
Feasibility Study on the Marban Property with the goal of bringing the property into production.
David Watkinson, President and CEO of Emgold, stated, “This transaction benefits both O3 and Emgold.
The East-West Property sits to the southeast of O3 Mining’s current open-pit resource on their Marban
Property. T hey are in the best position to advance exploration at East-West and potentially develop
resources on the property. Due to the limited size of the East-West Property, the potential to develop it as
stand-alone project is limited and as such, management believes monetizing this asset at this time, with the
upside potential of the O3 commons shares, along with the potential value of the royalty in the future
represents a significant positive outcome for Emgold and fits our acquisition and divestiture (“ A&D”)
business model.
About Emgold
Emgold is a gold and base metal exploration company focused on Nevada and Quebec . The Company’s
strategy is to look for quality acquisitions, add value to these assets through exploration, and monetize them
through sale, joint ventures, option, royalty, and other tra nsactions to create value for our shareholders
(acquisition and divestiture (A&D) business model).
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In Nevada, Emgold’s Golden Arrow Property, the core asset of the Company, is an advanced stage gold
and silver property with a well-defined measured and indicated resource. New York Canyon is a base metal
property subject to an Earn-in with Option to Joint Venture Agreement with Kennecott Exploration, a
subsidiary of Rio Tinto Plc (NYSE:RIO). The Mindora Property is a gold, silver, and base metal property
located twelve miles from New York Canyon. Buckskin Rawhide East is a gold and silver property leased
to Rawhide Mining LLC, operators of the adjacent Rawhide Mine.
In Quebec, the Casa South Property, is an early-stage gold property adjacent to Hecla Mining Corporation’s
(NYSE:HL) operating Casa Berardi Mine. The East -West Property is a gold property adjacent to and on
strike with Wesdome Gold Mine Ltd.’s ( TSX:WDO) Kiena Complex and O3 Mining Corporation’s
(TSX:OIII) Malarctic Property (Marban Project). The Trecesson Property is located about 50 km north of
the Val d’Or mining camp. Emgold also has a 1% NSR in the Troilus North Property, part of the Troilus
Mine Property being explored by Troilus Gold Corporation (TSX:TLG).
Note that the loc ation of Emgold’s properties adjacent to producing or past producing mines does not
guarantee exploration success at Emgold’s properties or that mineral resources or reserves will be
delineated. For more information on the Company, investors should review the Company’s website
at www.emgold.com or view the Company’s filings available at www.sedar.com.
On behalf of the Board of Directors
David G. Watkinson, P.Eng.
President & CEO
For further information, please contact:
David G. Watkinson, P.Eng.
Tel: 530-271-0679 Ext 101
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the po licies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note on Forward-Looking Statements
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. These statements and information
are based on facts currently available to the Company and there is no assurance that actual results will m eet 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 estimation of mineral resources and reserves, the
realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount o f future exploration and
development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title
disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking
statements and information are not guarantees 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 Compa ny does not undertake to
update any forward-looking statements or information except as may be required by applicable securities laws. The Company's
Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including
any technical reports filed with respect to the Company's mineral properties.