Victory Resources and Abitibi Royalties Announce Signing of an Option Agreement FOR Victory to Acquire 100% Interest in Hammond Reef South Project
Suite #1780, 355 Burrard St., Vancouver, BC, Canada, V6C 2G8
VICTORY RESOURCES AND ABITIBI ROYALTIES ANNOUNCE SIGNING OF AN
OPTION AGREEMENT FOR VICTORY TO ACQUIRE 100% INTEREST IN HAMMOND
REEF SOUTH PROJECT
VANCOUVER, BC, CANADA (August 10th, 2020) – Victory Resources Corporation (CSE: VR) (FWB: VR61)
(OTC: VRCFF) (“Victory” or the “Company) is pleased to announce that the Company has entered into
an option agreement for Victory to acquire 100% interest in the Hammond Reef South Project, which
adjoins Agnico Eagle’s Hammond Reef Project in Northwestern Ontario.
“Hammond Reef South represents the first major advance in Victory’s recently announced objective to
embark on a significant gold, silver and precious metals acquisition strategy,” said Mr. David Lane,
President and CEO of Victory.
The Hammond Reef South Project adjoins Agnico Eagle’s Hammond Reef Project, which contains an
open pit measured and indicated mineral resource of 208 million tonnes grading 0.67 gpt gold
(containing 4.5 million ounces of gold), as well as open pit inferred mineral resource of 0.5 million
tonnes grading 0.74 gpt gold (containing 12,000 ounces of gold), using a cut-off grade of 0.32 gpt, as of
December 31, 2019 (see Agnico Eagle news release dated February 13, 2020 for further information). An
Amended Environmental Assessment was submitted in January 2018 and the project subsequently
received environmental approval from both Federal and Provincial agencies (see notice of approval
dated May 16, 2019 on Agnico Eagle’s website).
“The Hammond Reef south property is immediately adjacent to this zone and may contain extensions of
the Hammond Reef zone or parallel structures. Agnico has staked a large area which completely
surrounds the property, suggesting they consider the area prospective,” said Victory geologist, Mr. Helgi
Sigurgeirson. “A program of magnetometer and soil surveys, along with geological mapping and
prospecting, is proposed with the purpose of locating zones of Hammond Reef style mineralization on
the Hammond Reef South Property.”
Terms of the Agreement
Victory Resources may earn a 100% interest in the project (subject to a 2% NSR payable to Abitibi
Royalties) and subject to receiving regulatory approval, by making the following cash and share
payments, including exploration commitments:
Cash and Share Payments
Suite #1780, 355 Burrard St., Vancouver, BC, Canada, V6C 2G8
• Option Agreement Signing: 500,000 Victory common shares and $50,000 cash
• Year 1 Anniversary: 750,000 Victory s common shares and $75,000 cash
• Year 2 Anniversary: 1,500,000 Victory common shares and $150,000 cash
Exploration Commitments
• On or Before Year 1 Anniversary: $100,000 ($25,000 firm commitment)
• On or Before Year 2 Anniversary: $150,000
• On or Before Year 3 Anniversary: $300,000
Scientific and technical information contained in this press release was reviewed and approved by Mr.
Helgi Sigurgeirson, Victory geologist, and a "qualified person" under NI 43-101.
The corporation has agreed to pay a finder’s fee to arms-length parties of a total of 8% of the gross
proceeds payable in cash and 8% warrants based on the number of shares issuable under the
Agreement, both restricted to the first year. The warrants will be for a 2-year term and priced at $0.15.
For further information, please contact:
Ivy Lu
Investor Relations
David Lane
President
Telephone: +1 (236) 317 2822
E-mail: [email protected]
About Victory Resources Corporation
VICTORY RESOURCES CORPORATION (CSE: VR) is a publicly traded diversified investment corporation
with mineral interests in North America. The company is also currently seeking other exploration
opportunities, preferably in Canada.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward Looking Statements
Certain information set forth in this news release may contain forward -looking statements that involve substantial
known and unknown risk s and uncertainties. All statements other than statements of historical fact are forward -
looking statements, including, without limitation, statements regarding future financial position, business strategy,
use of proceeds, corporate vision, proposed acqui sitions, partnerships, joint -ventures and strategic alliances and
co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward -looking
information reflects management's current beliefs and is based on information currentl y available to management.
Often, but not always, forward -looking statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims",
"anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be
identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be
taken, occur or be achieved. A numbe r of known and unknown risks, uncertainties and other factors may cause
Suite #1780, 355 Burrard St., Vancouver, BC, Canada, V6C 2G8
the actual results or performance to materially differ from any future results or performance expressed or implied
by the forward -looking information. These forward -looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of
general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are
cautioned that the assumptions used in the preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward -
looking statements. The Company does n ot assume any obligation to update or revise its forward -looking
statements, whether as a result of new information, future events, or otherwise, except as required by securities
laws.