Niobay Sells Property and Provides James BAY Project Update
Press release
TSX-V: NBY
NIOBAY SELLS PROPERTY AND PROVIDES JAMES BAY PROJECT UPDATE
Montreal, September 29, 2020 – Niobay Metals Inc. (“NioBay” or the “Company”) (TSX -V: NBY) is
pleased to ann ounce the sale (the “Transaction”) of its interest in the Des Meloizes Property
(the “Property”). The Property is located 7 km east of Amex Exploration’s Perron gold property and is
owned by the Company and SOQUEM Inc. (“SOQUEM”), under a joint venture agreement (the “Joint
Venture”).
The Transaction
The Transaction is being carried out in accordance with the terms of an arm's -length purchase
agreement (the "Purchase Agreement") dated September 21, 2020 among the Company, SOQUEM
and Generic Gold Corp. ("Generic Gold "). In exchange of its 4 7% ownership of the Property,
the Company will receive : (i) cash in the amount of $25,000; and (ii) an aggregate of 1,750,000
common shares (the "Consideration Shares") in the capital of Generic Gold.
In exchange for its 5 3% ownership in the Property, SOQUEM will receive: (i) cash in the amount
of $175,000; and (ii) an aggregate of 750,000 Consideration Shares. In addition, SOQUEM will receive
a 3% net smelter returns royalty (the "NSR") in respect of the Property, subject to the right and option
of Generic Gold to purchase 1% of the NSR for a price equal to $1,000,000.
The completion of the Transaction is subject to certain closing conditions, including, but not limited
to, the receipt of all necessary regulatory and other approvals, including the approval of the Canadian
Securities Exchange and execution of a definitive purchase agreement on terms acceptable to all
parties.
The Joint Venture owns other mineral titles located in the province of Québec, including the Clairy,
Lac Shortt and L’Espérance properties. The Clairy property is located 120 km north from the
Chibougamau mining camp and 40 km south of the former Troilus mine. This property covers an area
of 2,818 hectares and its minerals of interest are copper and zinc. The Lake Shortt and L’ Espérance
properties are located about 135 km south -west from the Chibougamau mining camp and 15 km
north-east from the Bachelor Lake concentrator, respectively. The Lac Shortt property covers an area
of 4,798 hectares and t he L’ Espérance property cover s an area of 1,978 hectares. The mineral of
interest for these properties is gold. The Company is currently evaluating various options fo r these
non-core properties in order to maximize value to the Company’s shareholders.
Technical Update
The Company i s pleased to report the Preliminary Economic Assessment (‘’PEA’’) for its James Bay
Niobium Project (the James Bay Project”), located in Northern Ontario is progressing well. The PEA is
being performed by G Mining Services Inc. and the Company is confident to release its results early in
the fourth quarter of 2020.
In the fourth quarter of 2020, t he Company will commence a high-resolution magnetic geophysics
survey on both the James Bay Project and Valentine properties. The last survey on the James Bay
Project dated from the 1960's. The Valentine property is located near the Otter dam which is about
110 km south-east of the James Bay Project. In 1967, the same exploration companies that discovered
James Bay property drilled three holes on the Valentine property. One of these holes ended in a 75
metres mineralized carbonatite that seems to be open at depth and laterally.
About NioBay Metals Inc.
NioBay Metals Inc. is a mining exploration company holding a 100% interest in the James Bay Niobium
Project located 45 km south of Moosonee, in the James Bay Lowlands in Ontario. NioBay also holds a
72.5% interest in the Crevier niobium and tantalum project located in Quebec and a 4 7% direct
participation in mineral titles situated in Quebec, under a joint venture agreement with SOQUEM.
Cautionary Statement
Certain statements contained in this press release constitute forward -looking information under the
provisions of Canadian securities laws . Such statements are necessarily based upon a number of
beliefs, assumptions, and opinions of management on the date the statements are made and are
subject to numerous risks and uncertainties that could cause actual results and future events to differ
materially from those anticipated or projected. The Company undertakes no obligation to update
these forward-looking statements in the event that management's beliefs, estimates or opinions, or
other factors should change, except as required by law.
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.
For more information, contact:
Claude Dufresne, P.Eng.
President & CEO
NioBay Metals Inc.
Tel.: (514) 866-6500, Ext. 2221
Email: [email protected]
Website: www.niobaymetals.com
Paradox Public Relations
Tel: (514) 341-0408 or 1-866-460-0408
Renmark Financial Communications Inc.
Melanie Barbeau
Tel: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com