Finlay Minerals Options the Pil Property FOR Consideration of $1.9 Million and $12 Million of Work
FINLAY MINERALS OPTIONS THE PIL
PROPERTY FOR CONSIDERATION OF $1.9
MILLION AND $12 MILLION OF WORK
VANCOUVER, BC
,
Feb. 10, 2022
/CNW/ -
Finlay Minerals Ltd.
(TSXV: FYL) (the "Company")
announces that it has entered into a binding letter of intent for the option of a 70% interest in its
wholly-owned PIL Property to ATAC Resources Ltd. ("ATAC") exercisable for consideration totaling
$1.9 million
and
$12 million
of work. The PIL Property, which was purchased from Electrum
Resource Corporation in 1999 and augmented in 2001, is in the Toodoggone Mining District of
British Columbia
and is neighboured by TDG Gold Corporation's Sable/Baker Property, Canasil
Resources' Brenda Property, AMARC Resource's Joy Property and Questex Gold & Copper's Sofia
Property. The PIL Property is also 25km northwest of the former Kemess South Mine and 15 km
east of Benchmark Metal's Lawyer's Project.
Pursuant to the letter of intent, ATAC may exercise the option and acquire a 70% interest in the
Property by making aggregate cash payments of
$650,000
and share payments having an
aggregate cash equivalent value of
$1,250,000
, and incurring an aggregate of
$12,000,000
in
exploration expenditures in staged amounts on or before
December 31
, 2026. Following the
exercise of the option, ATAC and Finlay will hold interests in the Property of 70% and 30%,
respectively, and a joint venture will be formed.
Robert Brown
, the Company's President and Chief Executive Officer states that
:
"Finlay management is very pleased to have the ATAC team involved in funding the PIL property.
ATAC has a proven and professional team of geologists, and the wherewithal to advance PIL using
all the most modern exploration techniques."
The PIL Property is subject to a 3% net smelter return royalty held by Electrum Resource
Corporation, a private company the outstanding voting shares of which are held by a former director
of the Company and members of his family, including the current directors
John A. Barakso
and
Ilona B. Lindsay
. The Company has a right to buy back ½ of the royalty (1.5%) for an aggregate
payment of
$2,000,000
. This buy-back right will be transferred to the joint venture following the
exercise of the option in consideration for ATAC assuming the obligation to fully fund the
$2,000,000
buy-back right as long as its interest in the joint venture exceeds 50%.
The option is subject to acceptance by the TSXV.
About Finlay Minerals Ltd.
Finlay Minerals Ltd. trades under the symbol "FYL" on the TSX Venture Exchange. For further
information and details please visit the Company's website at
www.finlayminerals.com
. The
Company's properties are:
the
Silver Hope
Property which includes porphyry copper-molybdenum mineralization
discovered in 2010, along with three silver-copper mineralized zones, in a contiguous trend with
the mined-out deposits of the former Equity Silver Mine; (
Reference:
http://minfile.gov.bc.ca/Summary.aspx?minfilno=093L++001
).
In 2020 and 2021 the Equity East and Allin Zones were defined by geochemistry and
geophysics. The Silver Hope Property surrounds the former Equity Silver Mine;
the
ATTY
Property which is contiguous to the north side of the Kemess East deposit and
adjacent to the Kemess Underground deposit of Centerra Gold Inc., and
the
PIL
Property, which is adjacent to Sable Resource's Baker Mine, has nine known
mineralized zones including the recently discovered and expanded Pillar East gold-silver
structural system. The Company is focused on the discovery of copper-gold-molybdenum
porphyry systems on the PIL Property.
On behalf of the Board of Directors,
Robert F. Brown
, P. Eng.
President & CEO
Neither the 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.
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. Forward-looking statements in this news
release include statements regarding, among others, the option of and plans for the PIL Property.
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 successes, and continued availability of capital and financing
and general economic, market or business conditions. 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/February2022/10/c1074.html
%SEDAR: 00018019E
For further information:
Finlay Minerals Ltd., Robert Brown, President & CEO, Tel: 604-684-3099,
CO: Finlay Minerals Ltd.
CNW 08:00e 10-FEB-22