Genius Metals Options the Meaghers Property to MegumaGold Corp.
Genius Metals Options the Meaghers Property to
MegumaGold Corp.
St-Sauveur, Québec − (CNW − December 9, 2019) − Genius Metals Inc. (CSE:GENI) (“Genius”)
is pleased to announce that it has entered into a option agreement dated December 4, 2019
with Meguma Gold Corp. (“ MGC”), whereby MGC may earn a 70% interest in the Meaghers
Property (the “ Meaghers Property” or the Property), located in South -Central Nova Scotia
within the Halifax County, 39 km NE from the Halifax-Dartmouth conglomeration.
Under the terms of the agreement the MegumaGold may earn up to a 70% interest in 6 Genius
mineral exploration licences totalling 100 claims (1,620 Hectares) by satisfying the following
conditions:
• MegumaGold shall issue to the Genius within ten (10) business days from the Effective
Date, an aggregate of 250,000 common shares in the capital of MegumaGold (the
“Consideration Shares”). The Consideration Shares are subject to a statutory four (4)
months and one (1) day hold period. In addition to the statutory hold period, 50% of the
Consideration Shares are subject to a contractual one (1) year hold period.
• Initial 49.9% Earn -In: In order to earn the initial 49.9% interest in the Property,
MegumaGold shall, within 18 months from the Effective Date, incur initial exploration
work on the Property relating to an initial exploration program made up of ground
surveys to pre-drilling targeting work, totalling at least $100,000 (“Phase I Program”).
• Additional 20.1% Earn-In: In order to earn an additional 20.1% interest in the Property,
MegumaGold shall, within 12 months from the latest date of which the Company satisfies
its Initial Earn -In obligations set out above, incur or cause to be incurred, a diamond
drilling program on the Property, totalling at least $150,000 (“Phase II Program”).
• Upon MegumaGold fully exercising the Option in its entirety to earn 70% of the Property,
Genius shall have the option to convert its remaining 30% interest in the Property, into
a 2% net smelter royalty (“NSR”), resulting in MegumaGold owning a 100% interest in the
Property, and Genius owning a 2% NSR on the Property. The terms of the NSR shall be
defined under standard industry terms and shall be set out in a net smelter royalty
agreement to be negotiated between the Genius and MegumaGold, which shall include,
among other things, a term whereby Meguma will have an option to acquire 50% of the
2% NSR for $1.0 million, leaving the Genius with a 1.0% NSR.
Guy Goulet, President and CEO of Genius declared: “Genius is pleased to partner with
MegumaGold for the exploration of the Meaghers property considering Meguma’s extensive
knowledge of the region and of gold producing anticlinal structures.”
See MegumaGold’s press release dated December 9th, 2019 at megumagold.com/news for
further information concerning this transaction.
About Meaghers Property, Nova Scotia
The Meaghers property is located in South-Central Nova Scotia within the Halifax County, 39 km
NE from the Halifax-Dartmouth conglomeration. The property consists of a block of 100 claims
covering 1,620 hectares comprised in mineral licences 51775, 51776, 51777, 51778, 51779 and
51780. Access from Halifax-Dartmouth urban center to the western end of the property is by a
paved road system, whereas several secondary roads crisscross the entire Meaghers property.
The property is situated <10 km from Atlantic Gold’s Touquoy Mine (Total Measured and
Indicated Reserves at Touquoy: 10.1 Mt @ 1.48 g/t Au (479,000 oz.); Staples et al., 2018). The
property reveals similar geological and structural characteristics to the T ouquoy Mine such as
exposures of the gold -bearing Goldenville Formation, the presence of warped and folded
anticlines and a comparable magnetic signature. The mineralization hosted on adjacent and
nearby properties is not necessarily indicative of minerali zation hosted on the Company’s
property.
The Meaghers property forms part of the Meguma Terrane of southeastern Nova Scotia. It is
underlain by folded Cambro -Ordovician sedimentary sequences of the Meguma Group
(Goldenville and Halifax formations) and extensive Mid-Devonian granitoids. Gold mining in Nova
Scotia within the Goldenville Formation (ex; the Moose River Gold District) takes place in quartz
veins, typically associated with the limbs and hinges of anticlines.
The technical contents of this releas e were approved by Michel Boily, PhD, geo; a Qualified
Person (QP) as defined by National Instrument 43-101.
About Genius Metals Inc.
Genius Metals is a Canadian mineral exploration company focused on the acquisition,
exploration and, if warranted, development of natural resource properties of merit in Canada.
The CSE has in no way passed upon the merits of the transactions and has neither approved nor
disapproved the contents of this news release. Neither the CSE nor its Regulation Servic es
Provider accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Statements and Disclaimer
Certain information contained herein may constitute “forward -looking information” under
Canadian securities legislation. Generally, forward-looking information can be identified by the
use of forward-looking terminology such as, “will be”, “expected” or variations of such words
and phrases or statements that certain actions, events or results “will” occur. Forward-looking
statements regarding the listing and trading of the Corporation’s common shares on the CSE and
the availability of a listing statement on the CSE’s website and on SEDAR are based on the
Company’s estimates and are subject to known and unknown risks, uncertainties a nd other
factors that may cause the actual results, level of activity, performance or achievements of the
Corporation to be materially different from those expressed or implied by such forward-looking
statements or forward -looking information. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking statements and forward-looking information. The Corporation will not update
any forward -looking statements or forward -looking information that are incorporated by
reference herein, except as required by applicable securities laws.
Contact Information
Pierre-Olivier Goulet
Vice-President Corporate Development
Email: [email protected]
Tél.: 579-476-7000
Guy Goulet
President and CEO
Tel.: 579 476-7000
Email: [email protected]