Trillium Gold Signs Agreement to Purchase Panama Lake Gold Project Located 80km from Kinross Gold’s Dixie Deposit in Red Lake, Ontario
NEWS RELEASE
Trillium Gold Signs Agreement to Purchase Panama Lake
Gold Project Located 80km from Kinross Gold’s Dixie
Deposit in Red Lake, Ontario
Vancouver, BC, Canada – June 1, 2022 – Trillium Gold Mines Inc. (TSXV:TGM, OTCQX:TGLDF,
FRA:0702) (“Trillium Gold” or the “Company”) is pleased to announce that it has signed a Purchase
and Sale Agreement (the “Purchase Agreement”) to acquire all of the rights and title to the Panama
Lake Property (the “Property”) held by St. Anthony Gold Corp. (“St. Anthony Gold”). The Panama
Lake Gold Project is located approximately 80km from, and on the same structural trend as, Kinross
Gold’s Dixie deposit and effectively extends Trillium Gold’s dominant contiguous foothold along the
Confederation belt by 9,882 hectares (see Figure 1).
Pursuant to an assignment and assumption agreement to be entered into on the closing of the
transactions contemplated by the Purchase Agreement (the “Assignment Agreement” together with
the Original Option Agreement, the “Option Agreement”), among Trillium Gold and St. Anthony
Gold, St. Anthony Gold will assign all of its rights and obligations under the Original Optio n
Agreement to Trillium Gold. In addition, pursuant to the Assignment Agreement, Benton Resources
Inc. (“Benton Resources”) will agree to consent to the assignment and will agree to register 100%
of the Property’s title to Trillium Gold while retaining its 50% ownership interest in the Property until
such time as Trillium Gold fulfils its option to earn 100% interest.
Terms of the Agreement
Pursuant to the terms of the Purchase Agreement, at closing, Trillium Gold will pay St. Anthony
Gold, Cdn $500,000 in cash and issue 1,000,000 common shares in the capital of Trillium Gold
(the “Common Shares”). In the event Trillium Gold acquires a 100% interest in the Property, St.
Anthony Gold may cause Trillium Gold to exercise its Buy-Back Right under the Option Agreement
(as further discussed below) to repurchase from Benton Resources one-half of the 2% Net Smelter
Royalty on the Property and convey such repurchased 1% Net Smelter Royalty to St. Anthony Gold
in exchange for a cash payment by St. Anthony Gold to Trillium Gold of $1,000,000.
Pursuant to the terms of the Option Agreement, in order for Trillium Gold to earn a 70% interest in
the Property, it will pay to Benton Resources Cdn $100,000 in cash or the equivalent in Common
Shares, based on the 10-day value weighted average price (“VWAP”) of Trillium Gold’s Common
Shares traded on the TSXV prior to issuance by October 24, 2022 , and complete $250,000 in
exploration expenditures on the Project by April 24, 2023. Trillium Gold has the option to earn 100%
ownership of the Property by paying Benton Resources a further $300,000 in cash or the equivalent
in Common Shares, based on the 10-day VWAP of Trillium Gold’s Common Shares traded on the
TSXV prior to issuance and complete $300,000 in exploration expenditures on the Project in each
case by October 24, 2023. Benton Resources has the right to retain a 2.0% NSR on the Project,
subject to the option of Trillium Gold to buy back one-half of such royalty (being 1.0%) for Cdn
$1,000,000 (the “ Buy Back Right ”). In the event th at Trillium Gold completes a NI 43 -101
compliant resource estimate for the Property , Trillium Gold will issue to Benton Resources
Common Shares with the amount of Common Share s issuable to be determined based on the
number of ounces of gold in the NI 43 -101 report and the market price of the Common Shares at
the time.
The Common Shares of Trillium Gold issued under the Purchase Agreement will be subject to a
four-month holding period from the closing date. The Purchase Agreement is subject to the
approval of the TSXV and other applicable regulatory authorities.
About the Panama Lake Property
The Panama Lake Gold project consists of 9,882 hectares in the historic Red Lake Mining district
and displays very similar regional geology to that of the Dixie deposit located along strike
approximately 80km to the west. A long history of exploration activity has occurred on the Panama
Lake Gold project since the late 1960s. Recent diamond drilling completed by Benton Resources
and St. Anthony Gold have continued to intercept anomalous gold values from the Panama Zone
and north of a highly anomalous gold grain till sample collected by the Geological Survey of Canada
(GSC Open File 3038). Recently completed interpretation of newly acquired airborne geophysics
have identified several linear magnetic trends that appear coincid ent with the Panama Zone and
other gold occurrences found on the Panama Lake Gold Project. This new geophysical
interpretation and recently obtained anomalous gold values from 2019 -2022 diamond drill
programs will allow future exploration programs to be focused on areas of high mineral potential.
The technical information presented in this news release has been reviewed and approved by
William Paterson QP, P.Geo, Vice President of Exploration of Trillium Gold Mines, as defined by
NI 43-101.
Figure 1: Map showing Trillium Gold’s Panama Lake Gold Project
On behalf of the Board of Directors,
Trillium Gold Mines Inc.
Russell Starr
Interim Chairman, President & CEO
For further information, please contact Donna Yoshimatsu, VP Corporate Development and
Investor Relations at [email protected], (416) 722-2456, or [email protected].
Visit our website at www.trilliumgold.com.
About Trillium Gold Mines Inc.
Trillium Gold Mines Inc. is a growth focused company engaged in the business of acquisition,
exploration and development of mineral properties located in the Red Lake Mining District of
Northern Ontario. As part of its regional-scale consolidation strategy, the Company has assembled
one of the largest prospective land packages in and around the Red Lake mining district in proximity
to major mines and deposits, as well as the Confederation Lake and Birch-Uchi greenstone belts.
Recently, the Company signed a definitive agreement for control over a significant portion of the
Confederation Lake greenstone belt to more than 100km in length. In addition, the Company has
interests in highly prospective properties in Larder Lake, Ontario.
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 adequa cy or
accuracy of this release.
Cautionary note regarding forward-looking statements
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
expectations.
Forward-looking information is based on managemen t’s reasonable assumptions, estimates,
expectations, analyses and opinions, which are based on management’s experience and
perception of trends, current conditions and expected developments, and other factors that
management believes are relevant and reasonable in the circumstances, but which may prove to
be incorrect. Such factors, among others, include: impacts arising from the global disruption
caused by the Covid -19 coronavirus outbreak, business integration risks; fluctuations in general
macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward
prices of gold or certain other commodities; change in national and local government, legislation,
taxation, controls, regulations and political or economic developments; ris ks and hazards
associated with the business of mineral exploration, development and mining (including
environmental hazards, industrial accidents); inability to obtain adequate insurance to cover risks
and hazards; the presence of laws and regulations that may impose restrictions on mining;
employee relations; relationships with and claims by local communities and indigenous
populations; availability of increasing costs associated with mining inputs and labour; the
speculative nature of mineral exploration and development (including the risks of obtaining
necessary licenses, permits and approvals from government authorities); and title to properties.
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.