Lode Gold Closes $3.5 Million Financing and Strategic Alliance; Ready to Advance Properties in Yukon and New Brunswick
Lode Gold Closes $3.5 Million Financing and
Strategic Alliance; Ready to Advance
Properties in Yukon and New Brunswick
Toronto, Ontario--(Newsfile Corp. - October 9, 2024) -
Lode Gold Resources Inc. (TSXV: LOD)
(OTCQB: SBMIF) ("Lode Gold" or the "Company")
is pleased to announce it has obtained
conditional approval from the TSXV and closed the transaction with Fancamp Exploration Ltd.
("Fancamp") pursuant to the definitive Investment Agreement for $3.5 million investment that the
Company announced in its
August 27, 2024 news release
. $500,000 goes into the Company for
subscription of 14,285,714 Special Warrants of the Company, each Special Warrant, at $0.035 per unit,
upon completion of the Spin Out, will convert to one common share of Lode Gold and one 5-year Lode
Gold share purchase warrant with an exercise price of $0.05 per share. If fully exercised, the warrant
subscription proceeds will total an additional $714,286; $3,000,000 goes into the Company's wholly-
owned subsidiary Gold Orogen, for 5,423,078 common shares or 19.9% of Gold Orogen. As part of the
Investment Agreement, the Company has transferred its interests in the McIntyre Brook Property (111
km
2
) and Fancamp transferred its interests in the Riley Brook Property (309 km
2
), both located in New
Brunswick, into a 50/50 joint venture between Gold Orogen and Fancamp, that is called Acadian Gold
Corp. The Company has also transferred its interest in its Golden Culvert and WIN Property to Gold
Orogen.
Fancamp has become a key shareholder of Lode Gold and a 19.9% shareholder of
Gold Orogen.
Details of the transaction were disclosed in the Company's
August 27, 2024 news release
.
The transaction remains subject to final acceptance of the TSX Venture Exchange. The proceeds from
the Special Warrant financing will be used for general and administrative costs, including transaction
costs, and on the Company's Fremont property. The Special Warrants and the securities acquired on
conversion thereof are subject to a four-month hold period from the closing date under applicable
Canadian securities laws.
A copy of the Investment Agreement is available on the Company's profile on SEDAR+
(
www.sedarplus.ca
).
About Lode Gold
Lode Gold (TSXV: LOD) is an exploration and development company with projects in highly prospective
and safe mining jurisdictions in Canada and the United States.
Its Golden Culvert and WIN Projects, Yukon, covering 99.5 km
2
across a 27-km strike length,
are situated in a district-scale, high-grade-gold-mineralized trend within the southern portion of
the Tombstone Gold Belt.
Gold deposits and occurrences within the Belt include Fort Knox, Pogo,
Brewery Creek and Dublin Gulch, and Snowline Gold.
A NI 43-101 technical report entitled "Technical
Report on the WIN-Golden Culvert Property for Lode Gold" with an effective date of May 15, 2024
summarizing the work to date on these properties is available on the Company's profile on SEDAR+
(
www.sedarplus.ca
) and on the Company's website (
www.lode-gold.com
).
Its McIntyre Brook Project, New Brunswick, covering 111 km
2
and a 17-km strike length in the
emerging Appalachian/Iapetus Gold Belt
, is surrounded by Puma Exploration's Williams Brook
Project (5.55 g/t Au over 50m)
1
and is hosted by orogenic rocks of similar age and structure as New
Found Gold's Queensway Project.
The Company is also advancing its Fremont Gold development project in the historic Mother
Lode Gold Belt of California where 50,000,000 oz of gold has been produced.
Fremont, located
500km north of Equinox Gold's Castle Mountain and Mesquite mines, has a Preliminary Economic
Assessment ("PEA") with an after-tax NPV (5%) of USD $217M, a 21% IRR, 11-year LOM, averaging
118,000 Oz per annum at USD $1,750 gold. A sensitivity to the March 31, 2023 PEA at USD $2,000/oz
gold gives an after-tax NPV (5%) of USD $370M and a 31% IRR over an 11-year LOM. The project
hosts an NI 43-101 resource of 1.16 MOz at 1.90 g/t Au within 19.0 MT Indicated and 2.02 MOz at 2.22
g/t Au within 28.3 MT Inferred.
The MRE evaluates only 1.4 km of the 4 km strike length of the Fremont
property which features five gold-mineralized zones. Significantly, three step-out holes at depth hit the
mineralized structure, typical of orogenic deposits that often occur at depth.
Fremont is located on
3,351 acres of 100% owned private land in Mariposa, the original gold rush county, and is 1.5
hours from Fresno, California. The property has year-round road access and is close to
airports and rail.
Please refer to the Fremont Gold project NI 43-101 PEA technical report dated March 31, 2023, which is
available on the Company's profile on SEDAR+ (
www.sedarplus.ca
) and on the Company's website
(
www.lode-gold.com
). The PEA technical report has been reviewed and approved by independent
"Qualified Persons" Eugene Puritch, P.Eng., FEC, CET, and Andrew Bradfield, P.Eng. both of P&E, and
Travis Manning, P.E. of KCA.
About Fancamp
Fancamp is a growing Canadian mineral exploration company focused on creating value through
medium-term growth and monetization opportunities with its strategic interests in high-potential mineral
projects, royalty portfolio and mineral properties. The company is focused on an advanced asset play
poised for growth and selective monetization with a portfolio of mineral claims across Ontario, Quebec
and New Brunswick, Canada, including copper, gold, zinc, titanium, chromium, strategic rare-earth
metals and others. The company continues to identify near-term cash-flow-generating opportunities and
in parallel aims to advance its investments in strategic mineral properties. Fancamp has investments in
an existing iron ore operation in the Quebec-Labrador Trough, a rare earth elements company,
NeoTerrex Minerals Inc., a copper-gold exploration company, Platinex Inc., in addition to an investment in
a near term cash flow generating zinc mine, EDM Resources Inc. in Nova Scotia. The Company has
future monetization opportunities from its Koper Lake transaction in the highly sought-after Ring of Fire in
Northern Ontario. Fancamp is developing an energy reduction and titanium waste recycling technology
with its advanced titanium extraction strategy. The company is managed by a focused leadership team
with decades of mining, exploration and complementary technology experience.
QUALIFIED PERSON STATEMENT
The scientific and technical information contained in this press release has been reviewed and approved
by Jonathan Victor Hill, Director, BSc (Hons) (Economic Geology – UCT), FAusIMM, and who is a
"qualified person" as defined by NI-43-101.
ON BEHALF OF THE COMPANY
Wendy T. Chan, CEO & Director
Information Contact
Winfield Ding
CFO
+1-416-320-4388
Kevin Shum
Investor Relations
+1 (647) 725-3888 ext. 702
Cautionary Note Related to this News Release and Figures
This news release contains information about adjacent properties on which the Company has no right to
explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative
of mineral deposits on the Company's properties.
Cautionary Statement Regarding Forward-Looking Information
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.
All statements, trend analysis and other information contained in this press release about anticipated
future events or results constitute forward-looking statements. Forward-looking statements are often, but
not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate",
"expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might"
occur or be achieved and other similar expressions. All statements, other than statements of historical
fact, included herein, including, without limitation, statements regarding the anticipated use of proceeds
from the Special Warrant financing, additional proceeds from the exercise of the warrants underlying the
Special Warrants, and the receipt of final acceptance from the TSX Venture Exchange with respect to
the transactions, are forward-looking statements. Although Lode Gold believes that the expectations
reflected in such forward-looking statements and/or information are reasonable, undue reliance should
not be placed on forward-looking statements since Lode Gold can give no assurance that such
expectations will prove to be correct. These statements involve known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ materially from those anticipated in
such forward-looking statements, including the risks, uncertainties and other factors identified in Lode
Gold's periodic filings with Canadian securities regulators, and assumptions made with regard to: the
ability of Lode Gold to obtain final acceptance from the TSX Venture Exchange with respect to the
transactions; that the Company will be able to use the proceeds of the Special Warrant financing as
anticipated; and the ability of the Company to continue with its stated business objectives and its ability
to obtain required approvals and raise additional capital to proceed. Forward-looking statements are
subject to business and economic risks and uncertainties and other factors that could cause actual
results of operations to differ materially from those contained in the forward-looking statements.
Important factors that could cause actual results to differ materially from expectations include risks
associated with the business of Lode Gold and Fancamp; risks related to the Company's ability to
obtain final acceptance from the TSX Venture Exchange with respect to the transactions; the risk that the
use of proceeds from the Special Warrant financing may differ from management's expectations; and
other risk factors as detailed from time to time and additional risks identified in the Companies' filings
with Canadian securities regulators on SEDAR+ in Canada (available at
www.sedarplus.ca
). Forward-
looking statements are based on estimates and opinions of management at the date the statements are
made. The Company does not undertake any obligation to update forward-looking statements except as
required by applicable securities laws. Investors should not place undue reliance on forward-looking
statements.
1
See Puma Exploration Inc.'s news release dated September 15, 2021.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/226151