Finlay Minerals enlarges its ATTY Property with the Acquisition of the ATG Property
Finlay Minerals enlarges its ATTY Property
with the Acquisition of the ATG Property
VANCOUVER, BC
,
July 11, 2022
/CNW/ -
Finlay Minerals Ltd.
(TSXV: FYL) (OTCQB:
FYMNF) ("
Finlay
" or the "
Company
") is pleased to announce that it has entered into an agreement
(the "
Purchase Agreement
") for the purchase of the ATG Property from Electrum Resource
Corporation ("
Electrum
"), which will enlarge Finlay's ATTY Property. The ATTY Property, which
was purchased from Electrum in 1999, and the ATG Property are located in the Toodoggone Mining
District of
British Columbia
and are neighboured, to the south by Centerra Gold Inc.'s Kemess
Underground and 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 will acquire 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 is currently 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
"). Upon
completion of the Transaction, the NSR Royalty will apply over the Combined Property (as defined
below) and, pursuant to the terms of the Purchase Agreement, the Buy-Back Right will be amended
such that Finlay will retain 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 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 Wrich showing. The Wrich
geochemical anomaly is connected 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.
The purchase of the ATG Property (which is northwest of and contiguous with the ATTY Property)
pursuant to the Transaction will enlarge 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 Property and the ATG Property).
The Transaction is subject to acceptance by the TSX Venture Exchange (the "
TSXV
") pursuant to
TSXV Policy 5.3. No finders fees will be paid in connection with the Transaction and no new insiders
or control persons will be created.
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 constitutes 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 is relying 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
The Company will file a material change report in respect of the Transaction, but it may be filed less
than 21 days in advance of the closing of the Transaction, as the Company wishes to close on an
expedited basis, subject to TSXV approval, for sound business reasons and deems it reasonable in
the circumstances to do so.
Qualified Person:
Wade Barnes
, P. Geo. and Vice President,
Exploration
for Finlay and a qualified person as defined
by National Instrument 43-101 –
Standards of Disclosure for Mineral Projects
, 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,
including, without limitation, statements regarding the anticipated benefits and completion of the
Transaction. 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 risks that
the Company will not receive the necessary regulatory or stock exchange approvals in connection
with the Transaction, market prices, exploration results, availability of capital and financing,
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 (including stock exchange 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/July2022/11/c7495.html
%SEDAR: 00018019E
For further information:
Finlay Minerals Ltd., Robert Brown, President, CEO & Director,, Tel: 604-
684-3099, [email protected]
CO: Finlay Minerals Ltd.
CNW 20:25e 11-JUL-22