GoldON Arranges Financing with Eric Sprott Use of proceeds will include Phase II drilling in progress at the West Madsen Gold Project right beside Canada’s next gold mine in Red Lake, Ontario
GoldON Resources Ltd. | 108 - 800 Kelly Road, Suite 416, Victoria, BC V9B 6J9 | Tel.: (250) 474-7999
FOR IMMEDIATE RELEASE
GoldON Arranges Financing with Eric Sprott
Use of proceeds will include Phase II drilling in progress at the West Madsen
Gold Project right beside Canada’s next gold mine in Red Lake, Ontario
VICTORIA, BC – December 7, 2020 – GoldON Resources Ltd. (TSX-V: GLD) (“GoldON” or
the “Company”) is pleased to announce that it has arranged a non-brokered private placement of
1,111,111 common share units at a price of $0.90 per unit with Mr. Eric Sprott to raise
approximately $1,000,000 in gross proceeds. Each unit will consist of one common share and one
non-transferable share purchase warrant entitling the holder to purchase one additional common
share of the Company at a price of $1.35 per share for a period of two years from the closing date.
Completion of this financing is subject to TSX Venture Exchange acceptance. All securities issued
pursuant to this offering will have a hold period expiring four months after the closing date.
The Company will use the net proceeds of this financing to fund the Phase II drilling program in
progress at its West Madsen Project in the heart of the Red Lak e Gold Camp and for general
working capital purposes.
Figure 1: Looking NE from West Madsen Block A toward the Pure Gold Red Lake Mine Project
The West Madsen Project covers over 4,700 hectares and is comprised of the West Madsen (Block
A and B) claims, where GoldON has the right to earn a 100% interest through an option agreement
with Great Bear Resources (see news release of May 28, 2019 ); and the Flat Lake and Madsen-
Medicine Stone claim groups that adjoin Block A, where GoldON c an acquire a 100% interest
through an option agreement with Bounty Gold (see news release of July 29, 2020, and the Red
Lake regional map).
Figure 2: Phase II Drill Plan for West Madsen Project
The focus of the fully-funded Phase II drilling program is on t he expanded West Madsen - Block
A (see Figure 2 above) that is contiguous with the Pure Gold Red Lake Mine pro perty where the
first gold pour is scheduled for late 2020 (Pure Gold’s news re lease of October 27, 2020 ). Pure
Gold’s reserves and resources include the Madsen deposit (FS status) and the Fork, Russet South,
and Wedge deposits (PEA status) that are hosted in a seven-kilometre-long gold system that follows
the major crustal break or contact between the Balmer and Confederation assemblages. This same
Balmer-Confederation contact has been exposed in outcrop 1.6 ki lometres (km) west of the Pure
Gold property boundary and is interpreted to continue for ~8 km across GoldON’s property.
The Phase II program is budgeted for up to 7,000 metres of diam ond drilling to aggressively test
the strike-extension of both the known gold mineralization to t he east and follow-up on the gold
mineralization discovered during GoldON’s Phase I drilling (se e news release of July 22, 2020).
The black ellipse in Figure 2 depicts the area of the interpreted east-west trending Balmer-
Confederation contact and the systematically planned drill holes that will test the extension of the
stratigraphy within the structurally controlled corridor. Ian Russell, P. Geo., an independent
qualified person as defined in National Instrument 43-101, has reviewed and approved the technical
contents of this news release on behalf of the Company.
About GoldON Resources Ltd.
GoldON is an exploration compan y focused on discovery-stage pro perties located in the prolific
gold mining belts of northwestern Ontario, Canada. Our current project portfolio includes four
properties in the Red Lake Mining Division (West Madsen, Pipestone Bay, McDonough and Bruce
Lake) and a fifth property in the Patricia Mining Division (Slate Falls).
For additional information: please visit our website at goldonresources.com, you can download
our latest investor presentation by clicking here and you can follow us on Twitter at
https://twitter.com/GoldONResources.
ON BEHALF OF THE BOARD
Signed “Michael Romanik”
Michael Romanik, President
GoldON Resources Ltd.
Direct line: (204) 724-0613
Email: [email protected]
Suite 108 - 800 Kelly Road, Suite 416
Victoria, BC, V9B 6J9
Forward-Looking Statements:
This news release may contain “f orward-looking statements” that involve known and unknown risks, uncertainties,
assumptions and other factors th at 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.