Gitennes Adds Quebec Gold Properties in Established Gold Camps Agreements Signed to Acquire Three Gold Properties and a Polymetallic Property in Val- d’Or Region
Suite 410 –325 Howe Street, B.C. V6C 1Z7 Tel: 604-682-7970
email: [email protected] website: www.gitennes.com
Gitennes Adds Quebec Gold Properties in Established Gold Camps
Agreements Signed to Acquire Three Gold Properties and a Polymetallic Property in Val-
d’Or Region
Not for distribution to United States newswire services or for release, publication, distribution or dissemination
directly, or indirectly, in whole or in part, in or into the United States.
Vancouver, B.C., - June 29, 2020: Gitennes Exploration Inc. ("Gitennes" or the " Company") -
(TSXV – GIT) is pleased to announce that it has entered into three agreements , as defined
below, with arm’s lengths parties to acquire gold properties in established gold camps in
Quebec. The first property Rivière-à-l’Aigle ("RAL") is adjacent to Osisko Mining Inc.’s Windfall
Lake property and two of the properties are in the vicinity of the past producing Joe Mann gold
mine, with one property ("New Mosher") adjacent to the past producing mine property and the
other ("JMW") is along the favourable geological structure that hosts the Joe Mann mine and
other gold prospects (see location map below) . The agreement for the JMW property also
includes polymetallic claims in the Val -d’Or region . In addition to the three gold property
acquisitions, Gitennes will be consolidating its current outstanding common shares on a 10 pre -
consolidation common share s for one post consolidation share. With the new properties
Gitennes will be undertaking a non-brokered private placement of up to $1.25 million to fund
exploration. The Company also announces that upon closing of the property transactions, Mr.
Kiril Mugerman, President, and CEO of Kintavar Exploration Inc. will be joining the Gitennes’
Board of Directors.
Property Highlights
RAL
RAL is located adjacent to Osisko Mining Inc.’s Windfall Lake property and consists of 119
claims totalling 6,600 hectares. Work to date on RAL has produced strong geochemical
anomalies in tills that appear to be associated with major faults and shear zon e axes. Osisko’s
work on its property has produced similar geochemical anomalies confirming the gold in tills
trend seen on RAL.
JMW
The property consists of 38 claims totalling 2,125 hectares and is located along the Guercheville
Fault/Deformation Zone which is host to the past producing Joe Mann mine. The mine operated
27 of the years from 1956 to 2007 and produced approximately 1.5 million ounces of gold at an
average grade of 8. 3 g/t gold. Work in 2011 on JMW has confirmed the gold bearing structure
with gold mineralization within altered and mineralized felsic intrusives within the deformation
zone.
Readers are cautioned that the Company has no interest in or right to acquire any interest in the Joe
Mann mine, and that mineral deposits and production results from the Joe Mann mine are not indicative
of mineral deposits on the Company's properties or any potential exploitation thereof.
New Mosher
The New Mosher property is approximately five kilometres north east of the Joe Mann mine and
consists of 12 claims totalling 670 hectares. Mineralization on New Mosher is within a sheared
gabbro and basalt with mesothermal type gold -bearing quartz veins . Recent sampling has
identified several anomalous areas that require follow up with sampling and geophysics. Much
of the property remains untested.
Readers are cautioned that a "qualified person" (as defined by National Instrument 43 -101) has not yet
completed sufficient work to be able to verify the historical information, and therefore the information
should not be relied upon.
Kintavar will remain the operator for the time being and they will bring to Gitennes its experience
and knowledge of the Quebe c geology, infrastructure and logistics on the ground. The team is
led by Kintavar’s VP Exploration Alain Cayer, P.Geo., recipient of the Bill Denis Prospector of
the Year Award for the Eleonore mine discovery with Virginia Gold Mines and discovered the
Anik property along the Guercheville deformation zone, now being advanced in partnership by
IAMGOLD and along which the JMW property is located.
The Agreements
The RAL and New Mosher properties are being optioned from Kintavar Exploration Inc. and the
JMW property is being purchased from two arm’s length individuals. Subject to acceptance for
filing of the Agreements by the TSX Venture Exchange (the "TSX -V"), Gitennes may earn up to
an 85% interest in the RAL and New Mosher properties and acquire 100% of the JMW property.
To earn the interests in the RAL and New Mosher properties , Gitennes will make share and
cash payments to Kintavar and incur certain exploration expenditures as follows:
RAL Property New Mosher Property
Date for Completion
Common Shares
to be Issued *
Minimum
Exploration
Expenditures
Common Shares
to be Issued *
Minimum
Exploration
Expenditures
TSX-V acceptance for
filing of Agreement
150,000 Nil 150,000 Nil
On or before Sept 30,
2021
250,000 $150,000 150,000 $150,000
On or before Sept 30,
2022
300,000 $250,000 150,000 $250,000
On or before Sept 30,
2023
300,000 $400,000 150,000 $300,000
On or before Sept 30,
2024
500,000 $700,000 400,000 $300,000
TOTAL: 1,500,000 $1,500,000 1,000,000 $1,000,000
* Common shares are post consolidation share s and a ny shares issued by the Company in connection with the
exercise of the Option will be subject to a hold period of four months and a day from the date of issuance.
The RAL and New Mosher properties are under separate option agreements and the above
share issuances and exploration expenditures are mutually exclusive. Upon making the above
share issuances and exploration expenditures separately on each property, Gitennes will earn a
70% interest in each property. Gitennes can increase its interest to 85% on either property by
either producing an inferred resource or conducting a PEA by September 30, 2025. Upon
completion of an inferred resource Gitennes will pay Kintavar $250,000 in cash or shares at
Gitennes’ option and pay an additional $750,000 in cash only on delivering a PEA. Gitennes
will grant to Kintavar a 1.5% NSR on each property and Kintavar will grant Gitennes the right to
purchase at any time 1% for C$1.0 million.
Gitennes can acquire a 100% interest in the JMW Property and the 10 claim polymetallic
property by paying the owners of the claims C$25,000 and issuing 1,000,000 post consolidation
shares upon TSX-V acceptance of filing of the Purchase and Sale Agreement and the closing of
a financing of at least $500,000. The owners will receive an additional 750,000 shares in twelve
months from Gitennes, subject to TSX-V approval. The JMW property currently has a 2.5%
NSR and Gitennes will issue to the owners a 1.5% NSR with Gitennes having the right to buy
back, at any time, 1.0% for C$1.0 million.
Appointment of Director
The Company also announces upon the closing of the property acquisitions, Mr. Kiril
Murgerman will join the Company’s Board of Directors. Mr. Murgerman is currently President
and CEO of Kintavar Exploration Inc . and Geomega Resources Inc. and before that he was a
mining analyst with Industrial Alliance Securities Inc. in Montreal and prior to that he worked
with Goldfields Ltd. on advanced stage exploration projects in West Africa, central Asia and
Latin America. Mr. Mugerman holds a bachelor degree with Honors (earth and planetary
sciences) from McGill University.
Consolidation of Common Shares and Private Placement
The Company also announces consolidation of its common shares. Consolidation will occur on
the basis of one (1) post -consolidated common share for every ten (10) pre -consolidated
common shares held. At the current date, the Company has 105,994,135 common shares
issued and outstanding and the Company will have approximately 10,599,414 common shares
issued and outstanding post -consolidation. It is anticipated that the consolidated shares will
commence trading on the TSX Venture Exchange (the "Exchange") no later than the week of
July 6, 2020.
Gitennes also announces that, subject to regulatory approval, it will undertake a non -brokered
private placement of up to $1.25 million consisting of non -flow through uni ts and flow through
units. The Company plans to issue up to 6.0 million non-flow through units with each unit issued
at a price of $0. 08 and will consist of one post -consolidation common share and one post -
consolidated common share purchase warrant entitling the holder to acquire one additional
post-consolidation common share at a price of $0.15 per share for a period of twenty four (24)
months and up to 7.0 million flow -through units with each unit issued at a price of $ 0.11 and
consisting of one post -consolidation common share and one half post-consolidated common
share purchase warrant , with each full warrant entitling the holder to acqu ire one additional
post-consolidation common share at a price $0. 20 per share for a period of twenty four (24)
months
The Company may pay finder's fees to arm's length parties that have introduced the Company
to subscribers participating in the Private Placement. All securities issued in connection with the
Private Placement will be subject to a four -month and one day hold period in Canada. The net
proceeds from the Private Placement are intended to be used for to fund exploration and for
general and administrative expenses.
None of the foregoing securities have been and will not be registered under the United States
Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and
may not be offered or sold in the United States or to, or for the account or benefit of, U.S.
persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent
registration or an applicable exemption from such registration requirements. This press release
does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale
of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful.
Gitennes also announces that it is not continuing with the option on the Maroon Property in
British Columbia and has returned the property to the owners.
About Gitennes Exploration Inc.
Gitennes is in the business of exploring for and advancing mineral properties with a focus on
high grade gold. The Company currently has the high grade gold Snowbird exploration property
in British Columbia and a 1 .5% Net Smelter Return royalty on the 18 million ounce Urumalqui
Silver Project in Peru.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by J. Rensby (P.Geo.), who is a "qualified person" within the meaning of National
Instrument 43-101. Mr. Rensby is independent of the Company.
For further information on the Company, readers are referred to the Company’s website at
www.gitennes.com and its Canadian regulatory filings on SEDAR at www.sedar.com.
Gitennes Exploration Inc.
“Ken Booth”
Ken Booth
President
For further information, please contact: Ken Booth
Phone: 604-682-7970
Email: [email protected]
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 news
release.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain statements that constitute "forward -looking information" within the meaning of
applicable Canadian securities laws concerning the business, operations and financial performance and condition of
the Company. All statements in this news release that are not purely historical are forward -looking statements and
include any statements regarding beliefs, plans, expectation s and orientations regarding the future. Often, but not
always, forward -looking statements can be identified by words such as "pro forma", "plans", "expects", "may",
"should", "budget", "schedules", estimates", "forecasts", "intends", "anticipates", "beli eves", "potential" or variations of
such words including negative variations thereof and phrases that refer to certain actions, events or results that may,
could, would, might or will occur or be taken or achieved. Such forward -looking statements include, among others,
statements as to the anticipated business plans and timing of future activities of the Company, including the exercise
of the Option to acquire the Snowbird Project and to conduct exploration activities thereon. Actual results could differ
from those projected in any forward -looking statements due to numerous factors including risks and uncertainties
relating to exploration and development and actual results of exploration activities ; the ability of the Company to
obtain additional financing ; delays in obtaining governmental and regulatory approvals (including of the TSX -V),
permits or financing; the need to comply with environmental and governmental regulations; potential defects in title to
the Company's properties; fluctuations in the prices of commodities and precious metals; operating hazards and risks;
environmental issues and liabilities; and competition and other risks and uncertainties of the mining industry .
Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are
reasonable, there can be no assurance that those beliefs, plans, expectations or intentions will prove to be accurate.
Readers should consider all of the information set forth herein and should review the Company’s periodic reports filed
from time -to-time with Canadian securities regulators. These reports and the Company's filings are available at
www.sedar.com.
Readers are cautioned not to place undue reliance on forward -looking statements. The forward-looking statements
contained in this news release are made as of the date of this news release and , except as otherwise required by
law, the Company undertakes no obligation to update the forward-looking statements contained herein, or to update
the reasons why actual results could differ from those projected in these forward-looking statements.