Emgold to Acquire up to 55% Interest IN the East-WEST Property, Val D’Or Quebec
EMGOLD MINING CORPORATION
Suite 1015 – 789 West Pender Street
Vancouver, B.C. V6C 1H2
www.emgold.com
December 11, 2019 TSX Venture Exchange : EMR
OTC : EGMCF
Frankfurt Exchange : EMLN
EMGOLD TO ACQUIRE UP TO 55% INTEREST
IN THE EAST-WEST PROPERTY, VAL D’OR QUEBEC
Vancouver, British Columbia - Emgold Mining Corporation (TSXV: EMR) (“Emgold” or the
“Company”) announces that it has signed a Claim Purchase and Option Agreement giving the Company
the option (the “First Option”) to acquire up to a 50% interest in the Eas t-West Property, Q uebec (the
“Property”) from a private individual (the “Vendor”). The remaining 50% interest in the Property is
owned by Knick Exploration Inc. (“Knick”) (TSXV: KNX). Emgold has also acquired a second option
(the “ Second Option ”) to increase its ownership in the Property to 55 %, as outlined below . The
transaction is subject to TSX Venture Exchange (the “Exchange”) approval.
About the East-West Property
The Property is located in the Val d’Or Mining Camp on strike, west of, and adjacent to Wes dome Gold
Mines Ltd. (TSX: WDO) Kiena Complex Property which hosts the past producing Kiena Mine. The
Kiena Complex produced more than 2.8 million ounces of gold f rom 1981 to 2013 and has a permitted
2,000 tonne per day milling and refining complex currently on care and maintenance. It is also on strike,
east of, and adjacent to Osisko Mining Inc.’s (TSX: OSK) Marban Block Property which contains three
past producing Mines (Marban, Norlartic, and Kierrans) that produced more than 590,000 ounces of gold.
Note that the location of the Property adjacent to the Kiena Complex or Marban Block Properties does not
guarantee exploration success or that mineral resources an d mineral reserves will be delineated on the
East-West Property.
A NI 43-101 Technical Report(1) was completed on the Property in 2018 by Knick Exploration Inc. and is
available under Knick’s corporate filings at www.sedar.com. Historic work on the Property, prior to
2007, includes more than 41,000 m in drilling in 180 drill holes. Knick acquired the Property in 2007 and
subsequently conducted three drilling programs totaling 17,728 m of drilling in 100 drill holes. The
Vendor acquired a 50 % interest in the Property in 2018 from Knick. Drilling results to date support the
potential for a gold system over a strike length of about 1.5 km.
Terms of the Transaction
On the closing date, the Vendor will grant to Emgold the First Option to acquire 50% ownership and title
to the claims comprising the Property and all rights under pursuant to a sale agreement between the
Vendor and Knick dated November 27, 2018, as amended on November 29, 2019 (together, the “ Sale
Agreement”). In exchange, Emgold shall pay the Vendor:
(i) 4,000,000 common shares in the share capital of Emgold (the “ Share Consideration”), to be
issued to the Vendor at the Closing Date;
(ii) a cash payment of CAD$35,000 to be paid to the Vendor upon the three month anniversary of the
Closing Date;
(iii) a cash payment of CAD$50,000 to be paid to the Vendor upon the six month anniversary of the
Closing Date; and
- 2 -
(iv) a cash payment of CAD$50,000 to be paid to the Vendor upon the nine month anniversary of the
Closing Date.
Upon completion of the share and cash payments, the Vendor’s Property interest in the claims will be
transferred to Emgold.
Emgold will assume the Second Option to earn an additional 5% (total 55%) interest in the Property by
completing, along with expenditures already completed by the Vendor, a total of C AD$200,000 in
expenditures within three years of the original Sale Agreement between the Vendor and Knick dated
November 27, 2018. Emgold will have the right and plans to become the operator of the Property during
the First Option Period and potentially the Second Option. Upon completing the First or Second Option,
at Emgold’s discretion, an industry standard joint venture will be formed with Knick with Emgold as the
operator.
Qualified Person
Robert Pease, C.P.G., 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 strategic acquisitions and
exploration in 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 to these assets through exploration, and monetize them through sale, joint
ventures, option, royalty, and other transactions to create value for our shareholders (A&D). Our
properties include the Golden Arrow, New York Canyon, Buckskin Rawhide East, Buckskin Rawhide
West, and Koegel Rawhide Properties in Nevada and the Casa South Property in Quebec . For more
information on the Company, investors should review the Compan y's filings that are available at
www.sedar.com or the Company's website at www.emgold.com.
(1) NI 43-101 Technical Report Pertaining to the East -West Property, Val -d’Or Area, Northwe stern Quebec, Abitibi Region,
NTS 32C04, prepared for Knick Exploration Inc., November 21, 2017, D. Theberge.
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 thi s
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 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
- 3 -
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 of future
exploration and development, capital and operating costs, the availabilit y 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 Company doe s
not undertake to update any forward -looking statements or information exce pt 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.