Finlay Minerals completes Acquisition of the ATG Property expanding the ATTY Property
Finlay Minerals completes Acquisition of the
ATG Property expanding the ATTY Property
VANCOUVER, BC
,
Aug. 26, 2022
/CNW/ -
Finlay Minerals Ltd.
(TSXV: FYL) (OTCQB:
FYMNF) ("
Finlay
" or the "
Company
") is pleased to announce that, further to its news release issued
on
July 11, 2022
, the Company has today closed its acquisition of the ATG Property from Electrum
Resource Corporation ("
Electrum
"), expanding Finlay's ATTY Property. The acquisition was
completed pursuant to the terms of an agreement dated as of
July 11, 2022
between the Company
and Electrum (the "
Purchase Agreement
"). The ATTY Property, which was purchased from
Electrum in 1999, and the ATG Property are contiguous and located in the Toodoggone Mining
District of
British Columbia
; they are neighboured, to the south by Centerra Gold Inc.'s Kemess
Underground and Kemess East copper (Cu) – gold (Au) porphyry deposits, and to the north by
Amarc Resources – Freeport McMoRan's Joy property.
Pursuant to the Purchase Agreement, Finlay acquired the ATG Property, which comprises three
mineral tenures totaling approximately 1,105 hectares, for consideration consisting of 1,750,000 fully
paid common shares of Finlay with a deemed value of
$0.08
per share, for a deemed total value of
$140,000
(the "
Transaction
").
The ATTY Property was subject to a 3% net smelter return royalty held by Electrum (the "
NSR
Royalty
"), with Finlay retaining the right to buy back one-half of the NSR Royalty (1.5%) for an
aggregate payment to Electrum in the amount of
$1,000,000
(the "Buy-Back Right"). As a result of
the Transaction, the NSR Royalty applies over the Combined Property (as defined below) and,
pursuant to the terms of the Purchase Agreement, the
Buy-Back Right
has been amended such
that Finlay retains the right to buy back one-half of the NSR Royalty (1.5%) for an aggregate
payment to Electrum in the amount of
$1,500,000
.
The purchase of the ATG Property (which is northwest of and contiguous with the ATTY Property)
pursuant to the Transaction expands Finlay's ATTY Property to 15 mineral tenures totaling
approximately 4,498 hectares (collectively, the "
Combined Property
"). (
Click
HERE
to view the
Company's ATTY and ATG Property).
Electrum and Baril Developments Ltd., each of which is a private
British Columbia
company
controlled by
John J. Barakso
,
Ilona B. Lindsay
and Dr.
John A. Barakso
, and a personal trust of
which
John J. Barakso
is the sole trustee and of which
Ilona B. Lindsay
and Dr.
John A. Barakso
are
beneficiaries, are the registered holders, in the aggregate, of more than 20% of the voting rights
attached to the Company's issued and outstanding common shares. In addition, each of
Ilona B.
Lindsay
and Dr.
John A. Barakso
is a director and/or officer of the Company. As a result, the
Transaction constituted a "related party transaction" within the meaning of TSXV Policy 5.9 and
Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special
Transactions
("
MI 61-101
"). The Company relied on the exemptions from the formal valuation and
minority shareholder approval requirements of MI 61-101 provided by subsections 5.5(a) and 5.7(1)
(a) of MI 61-101, on the basis that, at the time the Transaction was agreed to, neither the fair
market value of the ATG Property to be acquired pursuant to, nor the fair market value of the
consideration for, the Transaction exceeded 25% of Finlay's market capitalization as determined in
accordance with MI 61-101.
No finders' fees were paid in connection with the Transaction and no new insiders or control persons
were created.
Robert Brown
, President and Chief Executive Officer of Finlay, states:
"
The ATG Property is strategically positioned south of Amarc's Joy Property and contiguous to the
ATTY Property. In 2021, an exploration program consisting of soil sampling and alteration mapping
outlined a
600m
x
1,000m
Cu and Au geochemical anomaly around the ATG's Wrich showing. The
Wrich geochemical anomaly connects with the Cu and Au geochemical anomaly on the SW Takla
target on the Joy and the two combined geochemical anomalies cover an area of
2,700m
x
1,500m
.
The ATG Property adds a porphyry target at Wrich and joins several compelling targets at ATTY
including the drill-ready KEM target, which represents potential Kemess East-style porphyry
mineralization, and the drill-ready Attycelley epithermal Au, Cu, silver, lead, and zinc target.
"
Qualified Person:
Wade Barnes
, P. Geo. and Vice President, Exploration for Finlay and a qualified person as defined
by National Instrument 43-101, has approved the technical content of this news release.
About Finlay Minerals Ltd.
Finlay is a TSXV company focused on exploration for base and precious metal deposits in northern
British Columbia
.
Finlay trades under the symbol "FYL" on the TSXV and under the symbol "FYMNF" on the OTCQB.
For further information and details, please visit the Company's website at
www.finlayminerals.com
On behalf of the Board of Directors,
Robert F. Brown
, P. Eng.
President & CEO
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information:
This news release includes certain "forward-looking information"
and "forward-looking statements" (collectively, "
forward-looking statements
") within the meaning
of applicable Canadian securities legislation. All statements in this news release that address
events or developments that we expect to occur in the future are forward-looking statements.
Forward-looking statements are statements that are not historical facts and are generally, although
not always, identified by words such as "expect", "plan", "anticipate", "project", "target", "potential",
"schedule", "forecast", "budget", "estimate", "intend" or "believe" and similar expressions or their
negative connotations, or that events or conditions "will", "would", "may", "could", "should" or
"might" occur. All such forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made. Although Finlay believes the expectations
expressed in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or developments may
differ materially from those forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include market prices, exploration
results, availability of capital and financing and general economic, market or business conditions,
and the other risk factors described in Finlay's filings with Canadian securities regulators on
SEDAR at
www.sedar.com
. These forward-looking statements are based on a number of
assumptions including, among other things, assumptions regarding general business and
economic conditions, the timing and receipt of regulatory and governmental approvals, the ability
of Finlay and other parties to satisfy stock exchange and other regulatory requirements in a timely
manner, the availability of financing for Finlay's proposed transactions and programs on
reasonable terms, and the ability of third party service providers to deliver services in a timely
manner. Investors are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ materially from those projected in the
forward-looking statements. Finlay does not assume any obligation to update or revise its forward-
looking statements, whether as a result of new information, future or otherwise, except as required
by applicable law.
SOURCE
Finlay Minerals Ltd.
View original content:
http://www.newswire.ca/en/releases/archive/August2022/26/c1822.html
%SEDAR: 00018019E
For further information:
Finlay Minerals Ltd., Robert Brown, President & CEO, Tel: 604-684-3099,
CO: Finlay Minerals Ltd.
CNW 15:20e 26-AUG-22