ML GOLD to Sell Block 103 Iron ORE Asset
Suite 2000 – 1177 West Hastings St
Vancouver, BC Canada V6E 2K3
T: 604-669-2279 / F: 604-602-1606
April 18, 2017
ML GOLD TO SELL BLOCK 103 IRON ORE ASSET
ML Gold Corp. (TSX-V: MLG; FSE: XOVN.F) (“ML Gold” or the “Company”) reports it
has entered into a binding letter of i ntent (the “Letter of Intent ”) with Accend
Capital Corporation (“Accend”) , a capital pool company listed on the TSX Venture
Exchange (TSXV: ADP.H). The Letter of Intent provides for Accend to acquire (the
“Transaction”) 100% of the Company’s Block 103 iron ore prope rty (“Block 103” or
the “Property”).
The Block 103 Property comprises a series of mineral licenses, located in the
Labrador Trough, Newfoundland and Labrador, approximately 30 kilometres
northwest of the mining town of Schefferville, Quebec. Block 103 wa s subject to
extensive exploration and geological work by the Company from 2011 to 2013,
including 28,000 metres of drilling in 115 drill holes.
In consideration for the sale of Block 103, the Company will receive a series of cash
payments and share issuances from Accend as follows:
Closing: A cash payment of $200,000 and the
issuance of 12,000,000 common shares of
Accend (the “Consideration Shares”).
Two-year Anniversary of
Closing:
A cash payment of $800,000 (the Company
will be entitled to receive 10% of the gross
proceeds of any financing completed by
Accend following closing of the Transaction
as a credit towards this payment).
Completion of Pre-
Feasibility Study on the
Property:
A cash payment of $5,000,000, or at the
election of Accend an equivalent value of
common shares of Accend.
Completion of Bankable
Feasibility Study on the
Property:
A cash payment of $15,000,000 or, at the
election of Accend , an equivalent value of
common shares of Accend.
The Consideration Shares will be subject to the terms of a voluntary pooling
arrangement made in accordance with the policies of the TSX Venture Exchange
(the “Exchange”). In addition, the Consideration Shares will be subject to a four -
month hold period from the date of their issue.
Suite 2000 – 1177 West Hastings St
Vancouver, BC Canada V6E 2K3
T: 604-669-2279 / F: 604-602-1606
Adrian Smith, President of ML Gold commented, “This sale monetises ML Gold’s
interest in the Block 103 Property while continuing to benefit from exposure to the
iron ore space as significant shareholders, further capitalizing on the advancement
and development of the project. This allows ML Gold to focus on our Palmetto Gold
Project in Nevada and our Later and Aspen Copper Gold Projects in Brit ish
Columbia.”
The Letter of Intent calls on the parties to en ter into a definitive agreement and
provides for a due diligence period ending May 31, 2017 . The Transaction is
expected to act as Accend’s “Qualifying Transaction” as that term is defined in the
policies of the Exchange.
The Transaction and associated transactions are subject to regulatory approval
including the approval of the Exchange.
ABOUT ML GOLD CORP.
ML Gold Corp. is a Canadian listed Company, focused on creating shareholder value
through discoveries and strategic development of mineral properties in Canada and
the United States.
For additional information please visit the Company’s website at
www.mlgoldcorp.com. You may also email [email protected] or call investor
relations at (604) 669-2279.
ML GOLD CORP.
“Andrew Bowering”
Andrew Bowering
Chairman
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.
This news release may contain certain “Forward -Looking Statements” within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words “anticipate”, “believe”, “estimate”,
“expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward -looking statements or information.
These forward-looking statements or information may relate to future prices of commodi ties including gold, accuracy of mineral or resource
exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information,
continued access to mineral properties or infrastructure, currency risks including the exchange rate of US$ for CDN$, changes in exploration
costs and government royalties or taxes in Canada, the United States or other jurisdictio ns and other factors or information. Such statements
represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions an d estimates
that, while considered reasonable by the Company, are inherently s ubject to significant business, economic, competitive, political and social
risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievement s to be
materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements.
The Company does not intend, and does not assume any obligation, to update these forward -looking statements or information to reflect
changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by
applicable laws, rules and regulations.