12/30/21, 7:43 AM 2021-12-21 - Eros Signs Option Agreement with MAS Gold Corp.
12/30/21, 7:43 AM 2021-12-21 - Eros Signs Option Agreement with MAS Gold Corp.
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MAS GOLD CORP. AND EROS RESOURCES CORP. EXECUTE OPTION AGREEMENT
MAS GOLD TO GRANT EROS RIGHT TO EARN A 17.5% INTEREST IN
LA RONGE GOLD BELT PROPERTIES IN SASKATCHEWAN
News Release - December 21, 2021
VANCOUVER, B.C. December 21, 2021 – MAS Gold Corp. (“MAS Gold”) (TSXV: MAS) and Eros Resources Corp.
(“Eros”) (TSXV: ERC) announce the signing of a formal agreement (the “Agreement”) granting Eros the
exclusive right to earn a 17.5% interest in all of MAS Gold’s current properties in the prospective La Ronge
Gold Belt of northeastern Saskatchewan by funding $3,500,000 in exploration expenditures over a six
month period (the “Transaction”).
MAS Gold CEO Jim Engdahl comments, “We would first like to thank Eros for this transaction in funding our
2022 winter drill program. It sets MAS off on good footing to further enhance our key assets in 2022. 2021
has been a very successful year for MAS achieving all our milestones that we had set with the last piece being
the signing of an LOI with Comstock announced on December 14, 2021. With the completion of this
agreement in the first Quarter of 2022, MAS will be closer to exceeding its milestone of having an estimated
1,000,000 oz. gold resources under its ownership.
Jim added, “I would also like to take this opportunity to thank our whole team for accomplishing what you
have done this past year. Furthermore, I would like to thank our existing shareholders for the strong support
shown this year and like to welcome our new group of shareholders that will be joining us via the transaction
with Comstock. All the best to you all this winter season and enjoy a safe, joyful holiday with your family and
friends as best you can during this difficult time.
Details of the Option Agreement
The Option Agreement with Eros gives Eros the option to acquire a 17.5% interest in MAS Gold’s Preview-
North, Greywacke Lake, Elizabeth Lake and Henry Lake properties, totaling an area of approximately 33,860
hectares which are owned 100% by MAS Gold, subject to certain existing royalties held by third parties. The
Agreement also provides Eros the right to earn a 17.5% interest in the Contact Lake property that MAS Gold
has agreed to acquired from the Government of Saskatchewan, being approximately 463 hectares, if and
when the Contact Lake property is transferred to MAS Gold Please see MAS Gold’s September 13 2021 press
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when the Contact Lake property is transferred to MAS Gold. Please see MAS Gold s September 13, 2021 press
release for more information on the acquisition of the Contact Lake property. MAS Gold expects to complete
the acquisition of the Contact Lake property early in 2022, and has recently reached an agreement in
principle with the Government of Saskatchewan to extend the deadline to complete the transfer of the
property to December 31, 2022. The Agreement does not provide Eros with a right to earn an interest in the
Preview SW gold deposit and property that MAS Gold recently announced it has entered into a letter of intent
to acquire from Comstock Metals Ltd. Please see MAS Gold’s December 14, 2021 press release for more
information on the acquisition of the Preview SW gold deposit and property.
MAS Gold and Eros have agreed to conduct a winter 2022 exploration program and summer exploration
program (the “Program”) commencing in January 2022. The work planned will focus primarily on the
Preview-North property and include: infill holes within the North Lake deposit, as well as step out drilling to
the northeast and to the southwest; and drilling exploration holes at the Point deposit. The Program also
anticipates compilation work leading to drilling testing of select areas where gold mineralization was
previously outlined but not developed at the Contact Lake property. Plans have also been outlined in the
Program for a regional structural geological mapping and analysis program at both the Preview-North and
Greywacke Lake properties.
For MAS Gold, the Transaction is a “related party transaction” as defined in Multilateral Instrument 61-101
– Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and TSXV Policy 5.9. Eros holds
more than 10% of the voting rights attached to all MAS Gold’s outstanding voting securities and the parties
have common officers and directors. The Transaction is not a “related party transaction” for Eros. MAS Gold
is relying on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and
Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI
61-101 as the fair market value of the transaction does not exceed 25% of MAS Gold’s market capitalization.
As required by MI 61-101, MAS Gold advises that it expects to file a material change report relating to the
Transaction less than 21 days before completion of the Transaction, which MAS Gold deems reasonable in
the circumstances in order to complete the Transaction in an expeditious manner. The Transaction is subject
to acceptance by the TSX Venture Exchange from the perspective of both MAS Gold and Eros.
About MAS Gold Corp.
MAS Gold is a Canadian mineral exploration company focused on gold exploration projects in the
prospective La Ronge Gold Belt of Saskatchewan. In the belt, MAS Gold operates four properties including
the Preview-North, Greywacke Lake, Elizabeth Lake and Henry Lake properties that extend along segments
totaling roughly 60 kilometres of the geologically prospective La Ronge, Kisseynew and Glennie Domains
that make up the La Ronge Gold Belt. MAS Gold has also an agreement with the Province of Saskatchewan to
acquire a 100% interest in the Contact Lake property located within the boundaries of the Preview-North
property.
MAS Gold’s holdings include the North Lake, Greywacke North, Bakos and Point gold deposits and the
historically defined Elizabeth Lake copper-gold volcanic-hosted massive sulphide deposit within four
properties totaling approximately 34,323 hectares.
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The North Lake deposit located at the Preview-North property is estimated to contain an Inferred Mineral
Resource of 18,100,000 t grading 0.85 g/t Au, hence 494,000 contained ounces of gold. The Technical Report
about the updated Mineral Resource estimate will be filed in January, 2022 (see MAS Gold news release dated
December 9, 2021).
The Greywacke North deposit located at the Greywacke Lake property hosts multiple known stratabound,
high-grade gold-bearing zones, has an updated, combined openpit and underground Indicated Mineral
Resource of 645,000 t averaging 4.90 g/t Au for 101,000 insitu ounces of gold (600,000 t at 4.89 g/t Au, and
45,000t at 5.03 g/t Au, respectively), plus a combined openpit and underground Inferred Mineral Resource of
410,000 t averaging 4.12 g/t Au for 55,000 insitu ounces of gold (35,000 t at 1.97 g/t Au, and 375,000 t at 4.33
g/t Au, respectively). The Indicated and Inferred Mineral Resources were estimated using openpit and
underground cut-off grades of 0.65 g/t Au and 1.75 g/t Au, respectively. The Technical Report about the
updated Mineral Resource estimate will be filed in January, 2022 (see MAS Gold news release dated
December 6, 2021).
The Bakos deposit, located on the Contact Lake property that MAS Gold has an agreement to acquire (see
MAS Gold news release of September 13, 2021), was first identified by Saskatchewan Mining Development
Corporation (SMDC; later Cameco Corporation) exploration field crews in 1984. Operations were conducted
from December 1994 until closure in December 1998. Historical production and recovery values for the
entire operation included 188,185 ounces gold produced from 1,006,673 tonnes processed with a head grade
of 6.16 g/t Au at a recovery rate o 95% (Leniuk, G., B. Bharadwaj, G. Alderman & R. Wyka: Cameco Corporation
Contact Lake Operation, Final Report, January, 1999). The mine was shut down during low metals prices.
The Point deposit located at the Preview North property has been the subject of multiple drill campaigns
dating to the 1980’s when Saskatchewan Mining and Development Corporation (SMDC; later Cameco
Corporation) drilled 43 core holes. MAS Gold completed 13 additional holes in 2019, intersecting multiple
high-grade intercepts including 7.0 metres grading 14.99 g/t Au from 20.0 to 27.0 metres (see MAS Gold
news release dated June 25, 2019).
About Eros Resources Corp.
Eros is a Canadian public company listed on the TSX Venture Exchange. The company’s business objective is
the identification, acquisition and exploration of advanced-stage projects with a North American focus. In
addition, Eros plans to make strategic investments with a global focus on a diverse commodity base. Eros
managements’ expertise supports this strategy.
Qualified Person (QP)
The scientific and technical information contained in this news release has been prepared, reviewed, verified
and approved by David Tupper, P.Geo. (British Columbia), MAS Gold’s VP Exploration and a Qualified Person
within the context of Canadian Securities Administrators’ National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.
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For further information, please contact:
MAS Gold Corp.
Jim Engdahl
CEO & Director
t: 306-986-5722
c: 306-262-4964
EROS Resources Corp.
Ron Netolitzky
President and Chief Executive Officer
Phone: 604-688-8115
Caution Regarding Forward Looking Information and Statements
This news release includes certain forward-looking statements or information that could cause actual
results to differ materially from MAS Gold’s and Eros’ plans or expectations. All statements other than
statements of historical fact included in this release, including, without limitation, completion of the
planned exploration and development programs, the incurring of expenditures, the exercise of the option by
Eros, statements regarding metallurgical results and outcomes, any updated technical report, are forward-
looking statements that involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are subject to a variety of risks and
uncertainties, which could cause actual events, level of activity, performance or results to differ materially
from those reflected in the forward-looking statements, including, without limitation: risks relating to
failure of MAS Gold or Eros to satisfy the requirement in the Agreement, a breach of the Agreement by Eros
or MAS Gold, the actual results of current and future exploration activities, fluctuating gold prices,
possibility of equipment breakdowns and delays, cost overruns, that MAS Gold may lose or abandon its
property interests or may fail to receive necessary licences and permits, availability of capital and financing
and general economic, market or business conditions. The forward-looking statements included in this
news release are made as of the date hereof and MAS Gold and Eros disclaim any intention or obligation to
update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise, except as expressly required by applicable securities legislation.
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 news release.
EROS RESOURCES CORP. 2019
Trading Symbol: TSX-V: ERC
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