GoldON Enters Agreement to Acquire Option on Kir Vit Gold Project in Northeastern Ontario Project is located near the southern boundary of the Abitibi Greenstone Belt along the Larder Lake - Cadillac Deformation Zone and adjoins Bonterra Resources’
GoldON Resources Ltd. | 108 - 800 Kelly Road, Suite 416, Victoria, BC V9B 6J9 | Tel.: (250) 474-7999
FOR IMMEDIATE RELEASE
GoldON Enters Agreement to Acquire Option on Kir Vit Gold
Project in Northeastern Ontario
Project is located near the southern boundary of the Abitibi Greenstone Belt along
the Larder Lake - Cadillac Deformation Zone and adjoins Bonterra Resources’
Larder Lake Gold Project
VICTORIA, BC, August 29, 2018 – GoldON Resources Ltd. (“GoldON” or the “Company”)
(TSX-V: GLD) is pleased to announce it has entered into a purchase agreement to acquire the
right to earn a 100% interest in the Kir Vit gold project (the “P roject”) from Teck Resources
Limited (“Teck”). Located near the Ontario-Qu ebec border in McVittie Township, the Project
consists of 19 claims covering 1,274 hectares in two non-contiguous blocks (See: Location Map).
The latest work on the Project completed by T eck included soil and rock sampling in 2016/17
which outlined the footprint of a large hydrothe rmal system containing both gold and pathfinder
elements (Bi, W, Mo). The work also include d ground IP and magnetic geophysical surveys that
show strong anomalies at depth under known su rface Au-anomalies. This limited work focused
on the eastern claim block and indentified tw o primary drill targets (Porphyry Trend and
Conglomerate Trend).
“The Kir Vit project is an exci ting exploration opportunity in a world-class gold mining region
where accessibility and infrastructure are ex cellent,” said Michael Romanik, President of
GoldON. “The Project runs along the Larder Lake-Cadillac Deformation Zone, which has
historically produced over 24 million ounces of gold from the Matachewan, Kirkland Lake,
Larder Lake, Noranda, Cadillac, Milartic and Val d’Or Gold Camps.”
Under the terms of the purchase agreement, GoldON will acquire Teck’s option (the “Underlying
Option”) to purchase the Project for the fo llowing consideration: $200,000 upon closing;
$200,000 on the first anniversary of the closing; shares of Go ldON equal to 9.9% of the
company’s issued capital at closing; and upon exercising the Underlying Option, a 1% net
smelter returns royalty, half of which may be repurchased for $2,000,000. Subject to exercising
the Underlying Option, GoldON will also pay three milestone payments totaling $7,000,000 upon
completion of the first preliminary economic asse ssment, the first pre-feasibility study, and the
commencement of mine construction. Closing will occur within 60 days following the date of the
agreement and is subject to TSX Venture Exchange acceptance of the transaction described
herein, completion of an equity financing of not less than $500,000, and other conditions typical
of transactions of this nature.
GoldON Resources Ltd. | 108 - 800 Kelly Road, Suite 416, Victoria, BC V9B 6J9 | Tel.: (250) 474-7999
In conjunction with the purchase, GoldON will also undertake a non-brokered private placement
of up to 4,000,000 units at a price of $0.15 per unit. Each unit will consist of one common share
and one warrant. Each warrant will, in turn, en title the holder to purchase an additional common
share at a price of $0.25 for a period of two y ears following completion of the financing. This
financing is integral to GoldON’s acquisition of the Kir Vit Project and the proceeds will be used
for its acquisition and explora tion. GoldON may pay cash finders ’ fees of up to 6% of the
subscription proceeds and up to 6% in the form of finders’ warrant s in respect of the financing.
The financing is subject to TSX Venture Exchange acceptance.
In addition to the payments to Teck to purch ase the Underlying Option, GoldON can exercise the
Underlying Option and acquire 100% of the Kir Vit Project by paying to the underlying owners a
total of $430,000 over the next 18 months and gr anting the underlying owners a 2% net smelter
returns royalty. GoldON may repurchase one-half of this royalty for $1,000,000.
R. Bob Singh, PGeo, an independent qualified pers on 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 Resources Ltd. is an exploration company geographically focused on the prolific mining
belts of Ontario, Canada. All of its properties are in good standing and include the Slate Falls
gold-silver property in northwest ern Ontario and the Rainy Gold project which is next to New
Gold’s Rainy River Mine. To view GoldON’s latest presentation click here.
For more information contact Michael Romanik.
ON BEHALF OF THE BOARD
Signed “Michael Romanik”
Michael Romanik, President
Direct line: (204) 724-0613
Email: [email protected]
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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.