Falcon Signs MOU with Vatic Ventures to Option Wabunk BAY Cobalt Claims, Northwestern Ontario
1 | P a g e
NEWS RELEASE FG: TSX-V
FALCON SIGNS MOU WITH VATIC VENTURES TO OPTION WABUNK
BAY COBALT CLAIMS, NORTHWESTERN ONTARIO
Vancouver, B.C., June 28, 2018. FALCON GOLD CORP. (FG: TSX-V) (“Falcon” or the “Company”) reports it
has signed a Memorandum of Understanding (the “MOU”) with Vatic Ventures Corp. (“Vatic”) whereby
Vatic may acquire a 60% interest in the Wabunk Bay cobalt claims. The Wabunk Bay property consists of
two (cobalt, copper, nickel & PGE’s ) mining claims in Earngey Township in the Red Lake District of
northwestern Ontario . The claims comprise 19 claim units and cover an area of approximately 304
hectares.
Stephen Wilkinson, Falcon’s CEO stated; “This is an exciting development for Falcon. The agreement
with Vatic secures significant funding for advancing Falcon’s recently acquired Wabunk Bay property and
we look forward to implementing an exploration program shortly, focused on the historical cobalt
occurrences.”
The Wabunk Bay Property
The Property is located immediately east of the past producing Uchi gold mine in northwestern Ontario.
Highlights of exploration work on the Wabunk Bay Cobalt Claims are summarised as follows:
1956 Campbell Island Mines and Exploration Ltd. completed geophysical surveys, trenching and 6
diamond-drill holes, totalling 390 feet. Surface samples assayed 0.33% Co over 1.5m and
0.15% Co over 7.6m.
1957 The Ontario Department of Mines reported in its Mineral Resource Circular No. 2 (“MRC 2”):
“The main showing lies in the north -south portion of the gabbro, strik es near north, and is
about 300 feet long; although mineralization is not continuous, it is found along a length of
600 feet. The average width of mineralization cut in five drill holes is 21 feet. An 18 -foot
chip sample ran 1.08 percent copper and 0.40 p ercent nickel. A 22 -foot chip sample ran
0.44 percent copper and 0.12 percent nickel. The best 25 feet of drill core assayed 0.62
percent copper and 0.04 percent nickel. Core assays gave as high as 0.03 percent cobalt.”
2003 Jilbey Gold Exploration Ltd. carried out a large regional recognisance program in the
greenstone belts south and east of Red Lake, Ontario. The Wabunk Bay area was covered by
an airborne geophysical survey that identified two magnetic and conductive anomalies.
Option Terms
To earn its 60% interest, Vatic has agreed to issue to Falcon a total of 400,000 units composed of
common shares and warrants, to make cash payments to Falcon totalling $ 100,000 and to expend
$750,000 (within one year) to explore the property . In addition, Vatic will pay the underlying property
payments totaling $200,000. Subsequent to earning its 60% interest, Vatic will have the right to acquire
FALCON GOLD CORP.
520- 470 Granville St.
Vancouver, BC V6C1V5
+1 604-683-1991
+1 604 683-8544
www.falcongold.ca
2 | P a g e
Falcon’s remaining 40% interest for shares based upon an independent valuation. The agreement is
subject to TSX Venture Exchange approval.
Qualified Person
Mr. Bob Chataway, P. Geo. has reviewed and approved the technical content of this news release . Mr.
Chataway is a Qualified Person as defined by National Instrument 43 -101, Standards of Disclosure for
Mineral Projects.
About Falcon Gold Corp.
Falcon is a Canadian mineral exploration company focused on acquiring, exploring, and advancing
quality mineral projects in the Americas. Its projects include, the Central Canada Cobalt and Gold Project
in N.W. Ontario and the Burt on gold property located northwest of Sudbury, Ontario. The Company is
listed on the TSX Venture exchange with the trading symbol: “ FG”. For information on the Company,
please visit our website: www.falcongold.ca.
CONTACT INFORMATION:
Falcon Gold Corp.
David Tafel
Chairman
Stephen Wilkinson
CEO & Director
Telephone: 604-683-1991
Email: [email protected]
Cautionary Language and Forward-Looking Statements
This news release may contain forward looking statements including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations, receipt of property titles, etc. Forward looking statements
address future events and cond itions and therefore, involve inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the pol icies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.