Gossan Resources Announces Sale of Bird River Property for up to $1,610,000 plus a 2% Royalty
Gossan Resources Announces Sale of Bird
River Property for up to $1,610,000 plus a 2%
Royalty
Winnipeg, Manitoba--(Newsfile Corp. - April 13, 2023) -
Gossan Resources Limited
(TSXV: GSS)
(FSE: GSR) (XETRA: GSR) (the "
Company
" or "
Gossan"
) is pleased to announce it has entered into
an Asset Sale Agreement and a NSR Agreement (collectively the "Agreements") with Grid Metals Corp.
("Grid") to transfer the Company's 100% interest on the Company's Bird River Claims.
Samuel Pelaez, the Company's President and CEO stated: "We are excited to initiate a new age of
monetization for our legacy property portfolio. The consolidation of our Bird River Claims with Grid
Metals, our direct neighbor, and the largest claim holder in the Bird River Sill, is the most logical
development path for the Bird River Greenstone Belt. We are confident that the team at Grid can
accelerate exploration and development of the area, while also benefitting from the Canadian Critical
Minerals Strategy, and from Manitoba's critical minerals mining resurgence. Gossan remains invested
and supportive of the development vision as new shareholders and royalty-holders of Grid."
Bird River Greenstone Belt, Manitoba
Figure 1: Gossan's Bird River Claims on the Bird River Greenstone Belt. Map Courtesy of Grid
Metals Corp.
To view an enhanced version of this graphic, please visit:
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Terms of the Agreements
Gossan has agreed to sell and assign to Grid a three-year option to purchase 100% of the title and
interest in and to the Bird River Claims held by Gossan. The total consideration payable to Gossan for
the Bird River Claims will consist of the following:
(a) $500,000 cash payment on Closing;
(b) 1,500,000 Shares of Grid on Closing, subject to regulatory resale restrictions and an escrow;
(c) $300,000 cash payment on the first anniversary date from Closing;
(d) $300,000 cash payment on the second anniversary date from Closing;
(e) the NSR; and
(f) A $300,000 Deferred Cash Payment upon the occurrence of the Deferred Payment Event.
Upon the completion of points (a) to (e), Gossan will transfer the title to the Bird River Claims to Grid.
Grid retains the option to accelerate the completion of points (a) to (e), and the transfer of title at its sole
discretion.
Net Smelter Royalty ("NSR")
NSR is defined as a 2% net smelter returns royalty on minerals produced from the Bird River Claims, to
be granted by Grid to Gossan pursuant to, and on the terms and conditions set out in, the NSR
Agreement.
Deferred Payment Event
Deferred Payment Event is defined as the commencement of Commercial Production by Grid or any
affiliate for precious, base, industrial and / or rare earth minerals on the Bird River Claims.
Commercial Production is defined as:
(i) if a mill is located on the Bird River Claims, the last day of a period of 30 consecutive days in which,
for not less than 20 days, the mill processed ore from the Bird River Claims at the rate of at least 50% of
its rated capacity; or
(ii) if a mill is not located on the Bird River Claims, and the Bird River Claims form all or part of an active
mine plan operated by the Purchaser, the last day of a period of 15 consecutive days during which ore
has been shipped from the Bird River Claims for the purpose of earning revenues.
About the Bird River Property:
The Company's 100%-owned Bird River Property, which covers 51 mineral claims encompassing
approximately 2,870 hectares of the Bird River Sill Complex, is comprised of 3 separate blocks of the
Sill - the Chrome and its Extension, the Peterson and the Page Block - along with the Ore Fault Zone.
The Property hosts an Indicated and Inferred NI 43-101 mineral resource of Ni-Cu-PGM-Au
mineralization in two discrete near-surface deposits. This complex carries significant concentrations of
palladium and platinum along with nickel, copper, zinc and chromite.
The Bird River Property is located
about 50 km east of Lac Du Bonnet, Manitoba and, along the Sill, immediately adjacent to the west and
northwest of Grid Metals Corp. Makwa Deposit.
Qualified Person:
The technical content of this release has been reviewed and approved by Hamid Mumin, Ph.D., P.Eng.,
P.Geo., a Director of the Company and a 'Qualified Person' as defined under Canadian National
Instrument 43-101.
About Gossan Resources:
Gossan Resources Limited holds mineral exploration and development properties located in Manitoba,
Northwestern Ontario and Newfoundland. The Company's focus is to advance exploration and drilling of
its Glitter Property, located in the zinc-copper-silver rich polymetallic Sturgeon Lake Greenstone Belt of
Northwestern Ontario. The Company holds a gold initiative with the Gander Gold Property in
Newfoundland as well as a broadly diversified portfolio of multi-element properties. These properties are
prospective for hosting gold, base metals and platinum group elements, as well as specialty "green-
battery metals", nickel, cobalt, vanadium, titanium, tantalum, lithium and chromium. Gossan also has a
deposit of high-purity, magnesium-rich dolomite, and holds advance and production royalty interests in a
high-purity silica sand deposit. The Company trades on the TSX Venture and the Frankfurt/Freiverkehr &
Xetra Exchanges and currently has 66,801,471 Common Shares outstanding.
For further information, please bookmark
www.gossan.ca
or contact:
Samuel Pelaez, President & CEO
Gossan Resources Limited
Tel:
(202) 677-8513
E-Mail:
Kathy Ringland, Office Manager
Tel: (204) 943-1990
Cautionary Statement on Forward-Looking Information
Neither the TSX Venture Exchange ("
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.
No stock exchange, securities commission or other regulatory authority has approved or disapproved
the information contained herein. This news release contains forward-looking information which is not
comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors
that could cause actual events, results, performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information. Forward looking information in this
news release includes, but is not limited to, uncertainty over the outcome of any litigious matters, the
Company's objectives, goals or future plans, statements regarding exploration results and exploration
plans. Factors that could cause actual results to differ materially from such forward-looking information
include, but are not limited to, capital and operating costs varying significantly from estimates, the
preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, uncertainties relating to the availability and costs
of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices,
delays in the development of projects and the other risks involved in the mineral exploration and
development industry, and those risks set out in the Company's public documents filed on SEDAR.
Although the Company believes that the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The Company disclaims any intention or
obligation to update or revise any forward-looking information, whether as a result of new information,
future events or otherwise, other than as required by law.
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