Emgold Moves to Acquire 100% Interest IN the CASA South Property, QC
EMGOLD MINING CORPORATION
Suite 1015 – 789 West Pender Street
Vancouver, B.C. V6C 1H2
www.emgold.com
June 13 , 201 9 TSX Venture Exchange : EMR
OTC : EGMCF
Frankfurt Exchange : EMLN
EMGOLD MOVES TO ACQUIRE 100% INTEREST
IN THE CASA SOUTH PROPERTY, QC
Vancouver, British Columbia / TheNewswire / Emgold Mini ng Corporation (TSXV: EMR)
(“Emgold ” or the “ Company ”) announces it has completed an amendment (the “ Amendment ”) to the
definitive option agreement (the “ Option Agreement ”) between Emgold and Greg Exploration Inc, and
Affiliates (collectively referred to as the “ Vendors ”) and has exercised its option, granted by the
Amendment, to acquire a 100% interest in the Casa South Property, QC (the “ Property ”).
The Property comprises 180 active mining titles covering a to tal of 10,061 hectares (100 square
kilometers). It is located immediately south of Hecla M ining Corporation’s (“ Hecla ”) (NYSE:HL ) Casa
Berardi Mine which has produced over 2.0 million recovered go ld ounces since commencing production
in 1988. Gold production at the Mine in 2018, reported in a Feb ruary 21, 2018 news release by Hecla,
was 162,744 ounces. 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.
Under the terms of the original Option Agreement, Emgold ha d the option to complete C$375,000 in
payments (C$75,000 paid to date) over four years and complete C$1.6 million in exploration expenditures
to acquire a 91% interest in the Property (see March 19, 2019 press release). Under the terms of the
Amendment, in lieu of the remaining payments and work commit ments above and in order to acquire a
100% undivided interest in the Property, Emgold shall have the option of issuing to Vendors an amount
of 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 issue d as a result of the Amendment will be
subject to a four month statutory hold period. The Compen sation Shares and Compensation Warrant
Shares issued as part of the Amendment shall 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.
A one and a half percent (1.5%) Net Smelter Royalty (“ NSR ”) will be granted to the Vendors on the
Property, being agreed that half a percent (0.5%) of s aid NSR can be repurchased by Emgold for an
amount of C$500,000.
Emgold has elected to exercise this option and acquire a 100% interest in Casa South. The Amendment
and acquisition the Property are subject to TSX Venture Exchange approval.
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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 exploration company focused on Nevada and Quebec. The Company’s strategy is
to look for asset acquisitions and divestitures, joint venture s, option, royalty, and other business
opportunities to advance the Company and create value for our shareholders. Our properties include the
Golden Arrow, Buckskin Rawhide East, Buckskin Rawhide West, a nd Koegel Rawhide Properties in
Nevada and the Casa South Property in Quebec (subject t o regulatory approval of the Amendment and
exercise of the Option as outlined in this press release), adjacent to Hecla Mining Corporation’s (NYSE:
HL ) operating Casa Berardi Mine. The Company has Letters of Intent to acquire the New York Canyon
Property and the Mindora Property, both in Nevada. The Company also has a strategic investment of
3.75 million shares of Troilus Gold Corporation ( TSX: TLG ) which is advancing the Troilus Gold
Project in Quebec. 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 Service s Provider (as the term is defined in the
policies of the TSX Venture Exchange) accepts responsib ility 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 Litigation Reform Act of 1995. All statements, other than statements of histori cal fact, included herein including,
without limitation, statements regarding the anticipate d results from exploration activities, the discovery and del ineation of
mineral deposits/resources/reserves and the anticipated bu siness plans and timing of future activities of the Compa ny, 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 correct. Forward-lo oking statements are typically identified by words such as: "believe",
"expect", "anticipate", "intend", "estimate", "postulate" and similar expressions, or are those, which, by the ir nature, refer to
future events.
The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future results
or performance, and that actual results may differ mate rially from those in forward-looking statements as a res ult of various
factors, including potential acquisition of the Casa South, New York Canyon, and Mindora Properties, further exploration,
development, or mining activities on its other Propertie s, operating and technical difficulties in connection with m ineral
exploration 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 timing of the development of
new deposits, requirements for additional capital, future p rices of precious metals, changes in general economic co nditions,
changes in the financial markets and in the demand and market pri ce for commodities, labour disputes and other risks of the
mining industry, delays in obtaining governmental approvals, p ermits or financing or in the completion of development or
construction activities, changes in laws, regulations and pol icies affecting mining operations, title disputes, the ina bility of the
Company to obtain 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 outco me of
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any pending litigation, environmental issues and liabilities , and risks related to joint venture operations, and other r isks and
uncertainties disclosed in the Company's latest interim Management's Discussion and Analysis and filed with certain securities
commissions in Canada. 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 undertake to update any forward-looking info rmation 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 should review the Comp any’s annual information form and other regulatory filings f iled
with securities commissions or similar authorities in Cana da 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 forwar d-looking statements. The Company undertakes no obligation to
update any of the forward-looking statements in this news re lease or incorporated by reference herein, except as other wise
required by law.