Trillium Gold Enters into Binding Agreement to Acquire Remaining Interest in Gold Bearing Newman Todd Property
Trillium Gold Enters into Binding Agreement to Acquire Remaining Interest
in Gold Bearing Newman Todd Property
VANCOUVER, BC
,
Nov. 25, 2020
/CNW/ - Trillium Gold Mines Inc. (TSXV: TGM) (US: TGLDF) (FRA: 0702) (
"Trillium Gold"
or the
"Company"
) is pleased to
announce it has entered into a binding agreement with Heliostar Metals Limited (TSX.V:HSTR, US:RGCTF, FRA:RGG) (
"Heliostar"
) to purchase HelioStar's
16.5% interest in the Newman Todd property located in the
Red Lake
district of
Ontario
.
Newman Todd sale
Trillium Gold and Heliostar have worked together recently to confirm their respective ownership percentages in the Newman Todd property joint venture. Heliostar
received an offer for its 16.5% ownership stake from a third party in September and Trillium Gold, which held a right of first refusal pursuant to the terms of the
parties' joint venture agreement, has decided to exercise that right of first refusal. The parties have agreed that Heliostar will sell its 16.5% interest to Trillium
Gold on the following commercial terms;
Trillium Gold shall pay Heliostar a
C$700,000
cash payment,
Trillium Gold will issue to Heliostar 650,000 Trillium Gold common shares from treasury (using the closing price for Trillium Gold shares on the TSX Venture
Exchange for
November 24, 2020
, these shares have a market value of
C$1,001,000
), and
If at any point after the transaction completes there is 1,000,000 or more ounces of gold in measured and indicated reserves and resources on the Newman
Todd property, Trillium Gold shall make an additional
C$1,000,000
cash payment to Heliostar.
The transaction is subject to approval by the TSX Venture Stock Exchange.
Russell Starr
, CEO of Trillium Gold comments "Owning a 100% interest in the Newman Todd structure is a crucial acquisition and consistent with our view of
maximizing shareholder value through a growth-oriented precious metals exploration company focused in the Americas. We will soon emerge as the one of largest
land holders in the Red Lake Gold Camp having acquired some of the most highly perspective property packages in recent months."
The Project hosts the Newman Todd Structure, a narrow structural body that is defined in part by a distinct unconformity. The rocks of the structure are
hydrothermally altered and brecciated. Gold mineralization is often associated with the altered breccia zones and occurs as both free gold in quartz veins and in
gold-bearing pyrite, pyrrhotite and sphalerite.
The project is located in the high grade gold capital of
Canada
-
Red Lake, Ontario
. Drill programs undertaken in the past, as well as recent results from the 2020
summer program, have shown some exciting high grade gold intersections on the Property, and mineralization remains open along strike and to depth.
Figure 1 Location of the Newman Todd Project Property, owned 100%, and Wolf Bay, owned 50%, by Trillium Gold Mines (CNW Group/Trillium Gold Mines Inc.)
The technical information presented in this news release has been reviewed and approved by William Paterson QP, PGeo, VP of Exploration of Trillium Gold
Mines, as defined by NI 43-101.
Information contained in Trillium Gold's press release of
November 13, 2020
with respect to the third party that made the initial offer to Heliostar was derived
from publicly accessible filings in
Australia
. Trillium Gold recognizes these may not represent the current status or valuation of such third party.
On behalf of the Board of Directors,
Trillium Gold Mines Inc.
"Russell
Starr"
Russell Starr
President, CEO and Director
About
Trillium
Gold
Mines
Inc
.
Trillium Gold Mines Inc. is a
British Columbia
based company engaged in the business of acquisition, exploration and development of mineral properties located in
the highly prospective Red Lake Mining District of
Northern Ontario
.
Disclosure
and
Caution
Completion of the transaction is subject to a number of conditions, including TSX Venture Exchange acceptance. The transaction cannot close until the required
conditions are satisfied and required approvals are obtained. There can be no assurance that the transaction will be completed as proposed or at all. Trading in
the securities of the Company should be considered highly speculative. The TSX Venture Exchange has not reviewed or approved the terms to the Transaction.
Neither 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 contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events
to differ materially from current expectation. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of
the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
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SOURCE
Trillium Gold Mines Inc.
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For further information:
For further information about this news release and the Company's current activities contact [email protected], visit our website at
www.trilliumgold.com or call us at 604-688-9588.
CO: Trillium Gold Mines Inc.
CNW 08:30e 25-NOV-20