Wkn# :A2W2K) Emgold Completes Acquisition of the CASA South Property, Quebec
EMGOLD MINING CORPORATION
Suite 1015 – 789 West Pender Street
Vancouver, B.C. V6C 1H2
www.emgold.com
July 17th, 2019 TSX Venture Exchange : EMR
OTC : EGMCF
Frankfurt Exchange : EMLM (WKN# :A2W2K)
EMGOLD COMPLETES ACQUISITION
OF THE CASA SOUTH PROPERTY, QUEBEC
Vancouver, British Columbia - Emgold Mining Corporation (TSXV: EMR , OTC:EGMCF,
FRA:EMLM) (“Emgold” or the “Company”) has completed its acquisition of a 100% interest in the
Casa South Property, QC (the “Property”). The Property comprises 180 active mining titles covering a
total of 10,061 h ectares (100 square kilometers). It is located immediately south of Hecla Mining
Corporation’s (“Hecla”) (NYSE:HL) Casa Berardi Mine which has produced over 2.0 million recovered
gold ounces since commencing production in 1988. In a February 2019 press release, Hecla reported gold
production of 162,744 ounces in 2018 at their Casa Berardi Mine.
David Watkinson, President and CEO of Emgold , stated “We acquired an Option on the Casa South
Property in March 2019 and have since moved quickly to consolidate 100% ownership. The acquisition
fits within our focus on Quebec and Nevada and within one of our key strategies to acquire quality assets
adjacent to operating advanced stage properties. Our goal is to add value to Casa South through review
and analysis of a significant historic database of exploration information and by conducting strategic
exploration. Casa South is a large property with multiple exploration targets and the Company has
already begun a targeted exploration program with initial results due to be out shortly.”
Note that the presence of mineral resources and reserves found on the Casa Berardi Mine Property does
not guarantee discovery or delineation of mineral resources and reserves on the Casa South Property.
Terms of the Transaction
To complete the exercise of its option (the “ Option”) to acquire the Property, as announced by the
Company’s press release on June 13, 2019, Emgold has issued to Greg Exploration Inc. and Affiliates
(collectively referred to as the ”Vendors”) 4,000,000 units from its share capital (the “ Compensation
Units”), each Compensation Unit being comprised of one common share (each a “ Compensation
Share”) and one half of one common share purchase warrant (each a “ Compensation Warrant”), each
whole Compensation Warrant entitling the holder to acquire one (1) common share in the share capital of
Emgold (each a “ Compensation Warrant Share”) at a price of $0.25 per Compensation Warrant Share
for a period of twenty four (24) months from the date of issuance.
Compensation Shares and Compensation Warrant Shares issued as a result of the Amendment will be
subject to a four month statutory hold period. The Compensation Shares and Compensation Warrant
Shares issued as part of the Amendment will be subject to a Right of First Refusal (“ ROFR”) provisions
and limitation of monthly sales by the Vendors (the “ Offered Shares”) in any given calendar month,
subject to a 10 business day Notice Period (the “ Notice Period”). During the Notice Period, Emgold
shall have the right to identify one or several acquirers to purchase the Offered Shares, to which the
Vendors shall sell all (but not less than all) of the Offered Shares at equal or superior terms, based on the
prior 10 day volume weighted average price of Emgold’s common shares on the TSX Venture Exchange.
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A one and a half percent (1.5%) Net Smelter Royalty (“ NSR”) has been granted to the Vendors on the
Property, being agreed that half a percent (0.5%) of said NSR can be repurchased by Emgold for an
amount of C$500,000.
Qualified Person
Alain Moreau, a qualified person under the NI 43-101 instrument, has reviewed and approved the content
of this press release.
About Emgold
Emgold is a junior gold and base metal exploration company focused on Nevada and Quebec , the #1 and
#4 jurisdictions for mining investment according to the Frasier Institute’s Annual Survey of Mining
Companies, 2018 . The Company’s strategy is to look for quality acquisitions, add value through
exploration, and monetize assets through sale, joint ventures, option, royalty, and other transactions to
create value for our shareholders. Our p roperties include the Golden Arrow, Buckskin Rawhide East,
Buckskin Rawhide West, and Koegel Rawhide Properties in Nevada and an option to acquire up to a 91%
interest in the Casa South Property in Quebec . The Casa South Property is adjacent to Hecla Mining
Corporation’s (NYSE: HL ) operating Casa Berardi Mine . Emgold has a stra tegic share investment in
Troilus Gold Corporation ( TSX: TLG ) which is advancing the Troilus Gold Project in Quebec. As
announced by press release, Emgold is in the process of acquiring two additional advance stage properties
in Nevada – Mindora and New Yo rk Canyon. For more information on the Company, investors should
review the Company's filings that are available at www.sedar.com or the Company's website at
www.emgold.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
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Note on Forward-Looking Statements
This news release contains forward -looking statements and forward -looking information (collectively, "forward -looking
statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private
Securities Litig ation Reform Act of 1995. All statements, other than statements of historical fact, included herein including,
without limitation, statements regarding the anticipated results from exploration activities, the discovery and delineation o f
mineral deposits/resources/reserve s and the anticipated business plans and timing of future activities of the Company, are
forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that
such expectations will prove to be correc t. Forward -looking statements are typically identified by words such as: "believe",
"expect", "anticipate", "intend", "estimate", "postulate" and similar expressions, or are those, which, by their nature, refe r to
future events.
The Company cautions inves tors that any forward -looking statements made by the Company are not guarantees of future results
or performance, and that actual results may differ materially from those in forward -looking statements as a result of various
factors, including exploration potential of the Casa South Property, potential acquisition of t he New York Canyon and Mindora
Properties, further exploration, development, or mining activities on its other Properties, operating and technical difficulties in
connection with mineral explor ation and development activities, the estimation or realization of mineral reserves and mineral
resources, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and
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timing of the development of new d eposits, requirements for additional capital, future prices of precious metals, changes in
general economic conditions, changes in the financial markets and in the demand and market price for commodities, labour
disputes and other risks of the mining indus try, delays in obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, title
disputes, the inability of the Company to obt ain any necessary permits, consents or authorizations required, including TSX
Venture Exchange acceptance of any other current or future property acquisitions or financings and other planned activities, the
timing and possible outcome of any pending litiga tion, environmental issues and liabilities, and risks related to joint venture
operations, and other risks and uncertainties disclosed in the Company's latest interim Management's Discussion and Analysis
and filed with certain securities commissions in Can ada. The Company's Canadian public disclosure filings may be accessed via
www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the
Company's mineral properties.
The Company does not underta ke to update any forward -looking information provided in this press release or Management's
Discussion and Analysis , except as, and to the extent required by, applicable securities laws. For more information on the
Company and its business, investors shoul d review the Company’s annual information form and other regulatory filings filed
with securities commissions or similar authorities in Canada that are available on SEDAR at www.sedar.com. The Company
reviews its forward-looking statements on an ongoing basis and updates this information when circumstances require it.
Readers are cautioned not to place undue reliance on forward -looking statements. The Company undertakes no obligation to
update any of the forward -looking statements in this news release or in corporated by reference herein, except as otherwise
required by law.