Crystal Lake Finalizes Newmont Lake Project Option Agreement Symbol: TSX-V: CLM
Crystal Lake Finalizes Newmont Lake Project
Option Agreement
Symbol: TSX-V: CLM
VANCOUVER
,
Dec. 3, 2018
/CNW/ - Crystal Lake Mining Corporation (the "Company" or "Crystal
Lake Mining") is pleased to announce that it has finalized an agreement with Romios Gold
Resources Inc. (refer to
September 24, 2018
, news release) to acquire a 100% interest in the 436
sq. km Newmont Lake Project in the heart of the Golden Triangle, immediately south of Galore
Creek (Newmont and Teck) and north-northwest of key projects in Northwest B.C.'s highly active
Eskay Camp
. The agreement is subject to the approval of the TSX Venture Exchange.
Dr.
Peter Lightfoot
, Crystal Lake Technical Adviser, commented: "Our excitement regarding this
project has only intensified over the past two months. We're also eagerly anticipating assay results
from a total of six reverse circulation drill holes completed by
Crystal Lake
during the last half of
October at Burgundy Ridge and the Northwest Zone gold system. Icn addition, extensive sampling
was carried out by Romios' crews over parts of the project area during the summer. We look
forward to presenting those results and looking ahead to 2019.
"It's a rare opportunity to be able to advance such a prospective land package in the world's next
great mining camp," Dr. Lightfoot concluded.
Newmont Lake Project Highlights:
Vastly under-explored district-scale land package with multi-commodity potential in the heart of
the Eskay Rift;
22 documented mineral occurrences adjacent to the high-grade Northwest gold zone (historic
resource) which is open for expansion;
Major new infrastructure improvements in the region (roads, bridges, power, AltaGas camp)
have enhanced access and will accelerate the discovery process.
The Deal
To acquire a 100% interest in the 436 sq. km Newmont Lake Project,
Crystal Lake
must complete
the following:
1
.
$8 million
in exploration expenditures at Newmont Lake over the next three years (
$3 million
in
Year 1 and
$2.5 million
in each of Years 2 and 3. A total of
$508,914
in expenditures made by
Crystal Lake
since October, subject to verification, will be credited toward the Year 1
commitment through
September 20, 2019
);
2
.
$2 million
in cash option payments to Romios as follows:
$250,000
on signing of Letter
Agreement (paid) and a further
$250,000
payable on each of 90 days, 180 days and 270 days
following regulatory approval of transaction; a final
$1 million
payment upon
Crystal Lake
earning its 100% interest;
3
.
A total of 12 million shares of Crystal Lake will be distributed to Romios over a three-year
period – 4 million each year, with the first 4 million shares issued following regulatory approval
of the transaction (subject to normal hold period and a "lock up" provision).
Crystal Lake
will be the operator during the earn-in period, which it can accelerate at its discretion,
and Romios will have the right to appoint one director to the CLM board.
Romios will retain a 2% Net Smelter Returns Royalty (NSR) on the Newmont Lake Project, or on
any after-acquired claims within a 5 km radius of the current boundary of the project, which may be
reduced at any time to a 1% NSR on the payment of
$2 million
per 0.5% NSR.
Crystal Lake
will issue two million bonus shares to Romios in the event one or more NI-43-101
resource estimates collectively exceed one million ounces of gold equivalent resources in the
Indicated and Inferred categories, and an additional one million bonus shares for each full one million
additional ounces of gold equivalent resources which is so documented.
Qualified Person
The technical information in this news release has been reviewed and approved by Dr.
Peter C.
Lightfoot
, P.Geo., a Qualified Person responsible for the scientific and technical information in this
news release under National Instrument 43-101 standards.
About Crystal Lake Mining
Crystal Lake Mining is a Canadian-based junior exploration company focused on building shareholder
value through the discovery of new magmatic nickel sulfide deposits and other deposit types using
technical excellence in exploration target development.
On behalf of The Board of Directors of
Crystal Lake Mining Corporation
,
Richard Savage
, President & CEO
This news release may contain certain "forward looking statements". Forward-looking statements
involve known and unknown risks, uncertainties, assumptions and other factors that may cause the
actual results, performance or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by the forward-looking
statements. Any forward-looking statement speaks only as of the date of this news release and,
except as may be required by applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking statement, whether as a result of new information, future
events or results or otherwise.
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.
SOURCE
Crystal Lake Mining Corporation
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/December2018/03/c5463.html
%SEDAR: 00029065E
For further information:
MarketSmart Communications Inc., Tel: +1 (604) 261-4466, Toll free: 1-
877- 261-4466, Email: [email protected]; Momentum PR, Tel: +1 (514) 815-7473, Email:
CO: Crystal Lake Mining Corporation
CNW 16:36e 03-DEC-18