Troilus Announces Sale of Select Non-Core Properties to Comet Lithium and Provides Board Update
TROILUS ANNOUNCES SALE OF SELECT NON-CORE PROPERTIES TO COMET LITHIUM AND PROVIDES
BOARD UPDATE
JULY 15, 2024, Montreal, Quebec – Troilus Gold Corp. (“Troilus” or the “Company”, TSX: TLG; OTCQX:
CHXMF; FSE: CM5R) announces that it has entered into an agreement with Comet Lithium Corporation
(“Comet Lithium”) for the divestiture of its non -core properties, the Mercator, Monarch and El mer East
projects located in the James Bay Region (“The Transaction”) (See property locations in Figure 1) . The
Company would also like to announce the resignation of Dr. Eric Lamontagne and the appointment of Mr.
François Biron, former General Manager of the Troilus Mine, to the Board of Directors (the “Board”).
The sale of the non -core claims to Comet Lithium supports the company’s goal to focus solely on the
development of its flagship Troilus Gold -Copper project located in North Central Quebec while
maintaining exposure to the exploration upside of these properties.
Details of the Transaction:
Pursuant to an agreement dated July 12, 2024, Comet Lithium has agreed to acquire the Mercator,
Monarch and the East Elmer projects from Troilus in exchange for 1,500,000 Consideration Shares to
Troilus at an issue price of C$ 0.315 per Share (the “Issue Price”). The transaction will result in Troilus
owning approximately 6 % of Comet Lithium. In addition, Troilus has been granted a 2% Net Smelter
Royalty (“NSR”) on each of the Mercator, Monarch and Elmer East projects. Comet Lithium will have the
right to repurchase 1% for $3 million on each of the projects respectively.
In addition, Troilus has been granted a 24-month participation right, allowing the Company to participate
in any equity financing to maintain its equity percentage in Comet Lithium, subject to certain conditions,
including Troilus Gold holding 750,000 common shares of Comet Lithium at the time of the equity
financing.
Justin Reid, CEO of Troilus Gold Corp., commented , “ The sale of these non -core properties to Comet
Lithium is a strategic step in our commitment to concentrate resources and efforts on the Troilus Gold -
Copper Project as we advance towards production. We are confident in Comet Lithium's capabilities to
develop these assets and are keen to see their progress.”
Overview of Transferred Properties
The three transferred properties total 100 mining claims covering 52.22 km2. Details of each group of
properties are as follows:
Mercator Project:
14.91 km² land package (29 mining claims)
Located approximately 40 km southeast of Comet Lithium’s Liberty property and Windsome
Resources’ Adina project.
The Mercator Project is predominantly covered by sediments with identified and mapped pegmatite
dykes, in a favorable geological environment for LCT pegmatites
Monarch Project:
20.61km² land package (39 mining claims)
Located approximately 60km NE of the Whabouchi mine operated by Arcadium Lithium
Proximal and along trend to Cygnus Metals Limited's Auclair Project, including the Auriga, Lyra
and Pegasus discoveries. The Pegasus discovery hosts large pegmatites measuring up to 75m by
50m and 65m by 30m wide (see Cygnus Metals press releases dated November 28, 2023, January
10, 2024, and May 17, 2024)
Troilus previously completed geochemistry and prospection at Monarch as part of its summer
fieldwork programs in 2022 and 2023 as well as a geophysical survey in early 2024, which returned
strong soil anomalies on trend with the Auclair pegmatite discoveries.
The previous owner of the claims, Virginia Mines , conducted geophysical magnetic surveys and
drilling campaigns from 1996 to 2010 focused on gold , leading to the discovery of the Golden
Butterfly showing in the center of the property.
Elmer East Project:
16.7 km² land package (32 mining claims)
Located approximately 20 km south of Allkem Limited’s James Bay Lithium Project (4.3 Mt @
1.30% Li2O Indicated, and 55.9 Mt @ 1.29% Li2O Inferred) and north of Azimut Exploration Inc.’s
Wapatik Project, which has eight multi-kilometer target areas with multiple outcropping targets
likely corresponding to pegmatites.
Potential for nickel-copper and gold mineralization shown in previous exploration programs (see
Azimut Exploration press releases of December 7, 2021 , June 29, October 3, and October 27,
2022, April 24, and September 19, 2023).
Figure 1. Location of Claims Transferred to Comet Lithium Corp.
Board of Directors Update
The Company announces that Dr. Eric Lamontagne has resigned from the Board for personal reasons,
effective immediately. Mr. François Biron, a seasoned mining engineer with over 40 years of experience
who previously served as General Manager of the Troilus Mine, has been appointed to the Board in his
place.
Dr. Eric Lamontagne commented, “I am honoured to have worked with Troilus through the recent
completion of its Feasibility Study; Troilus is an excellent project which the entire team should be proud
of.”
Diane Lai, Chairperson of the Troilus Board commented, “The Board extends its gratitude to Eric for his
contributions to the Company and wishes him all the best in his future endeavors. We are pleased to
welcome Mr. François Biron to our Board, whose extensive operational experience and innovative mining
practices will support our development goals. He has a strong local involvement in the Quebec mining
industry, having served as the President of the Board of l’Institut national des mines de Quebec (National
Institute of Mines of Quebec) for over a decade. Notably, he previously served as the General Manager of
the Troilus Mine when it was in operation and this firsthand knowledge and history with the former mine
will be invaluable as we advance towards a mine restart, ensuring we leverage past successes to drive our
future growth efficiently and responsibly.”
Mr. Biron is a senior professional mining engineer with over 40 years of experience in the mining industry.
He specializes in mining operations and has held several senior site-based roles with leading international
mining companies, along with executive management positions. Notably, Mr. Biron served as the General
Manager of the Troilus Mine for Inmet Mining Corporation from 2005 to 2010 and as the President of the
Board of Directors of l’Institut national des mines de Quebec from 2010 to 2021. He has been instrumental
in managing major open pit mines, consistently applying the highest standards to achieve corporate
objectives. Additionally, Mr. Biron advocates for the social acceptability of mining projects, integrating the
latest automation technologies to enhance mining processes and emphasizing the importance of public
consultations with local communities.
About Comet Lithium Corp.
Comet Lithium is a dynamic lithium-focused exploration company active in the prolific James Bay District
of Quebec. Comet Lithium’s flagship asset is its 100%-owned Liberty Property contiguous to Winsome
Resources’ Adina lithium deposit, a growing high-grade lithium discovery. Comet Lithium is advancing its
Liberty Property to first-ever drilling.
About Troilus Gold Corp.
Troilus Gold Corp. is a Canadian development- stage mining company focused on the systematic
advancement of the former gold and copper Troilus Mine towards production. The Troilus copper-gold
project is located in the tier-one mining jurisdiction of Quebec, Canada, where it holds a large land position
of 435 km² in the Frôtet- Evans Greenstone Belt. A Feasibility Study completed in May 2024 supports a
large-scale 22-year, 50ktpd open -pit mining operation, positioning it as a cornerstone project in North
America.
For more information:
Caroline Arsenault
VP Corporate Communications
+1 (647) 407-7123
Cautionary Note Regarding Forward-Looking Statements and Information
This press release contains “forward- looking statements” within the meaning of applicable Canadian
securities legislation. Forward-looking statements include, but are not limited to, statements regarding,
the impact of the resignation and the appointment on the Company, the impact of the divestiture of the
claims on the company and the likelihood that the transaction will close on the timeline estimated or at
all, the results of the FS, including, without limitation various project economics, financial and operational
parameters such as the timing and amount of future production from the Project , expectations with
respect to the IRR, NPV, payback and costs of the Project, anticipated mining and processing methods of
the Project; proposed infrastructures, anticipated mine life of the Project, expected recoveries and grades,
timing of future studies including the environmental assessments (including the timing of an
environmental impact study) and development plans, opportunity to expand the scale of the project, the
project becoming a cornerstone mining project in Noth America; the development potential and timetable
of the project; the estimation of mineral resources and reserves ; realization of mineral resource and
reserve estimates; the timing and amount of estimated future exploration; costs of future activities; capital
and operating expenditures; success of exploration activities; the anticipated ability of investors to
continue benefiting from the Company’s low discovery costs, technical expertise and support from local
communities, the timing and amount of estimated future exploration; and the anticipated results of the
Company’s 2024 drill program and their possible impact on the potential size of the mineral resource
estimate. Generally, forward- looking statements can be ident ified by the use of forward -looking
terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “continue”, “anticipates” or “does not anticipate”, or “believes”, or
variations of such words and phrases or statements that certain actions, events or results “may”, “could”,
“would”, “will”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are
made based upon certain assumptions and other important facts that, if untrue, could cause the actual
results, performances or achievements of Troilus to be materially different from future results,
performances or achievements expressed or implied by such statements. Such statements and information
are based on num erous assumptions regarding present and future business strategies and the
environment in which Troilus will operate in the future. Certain important factors that could cause actual
results, performances or achievements to differ materially from those in t he forward-looking statements
include, amongst others, currency fluctuations, the global economic climate, dilution, share price volatility
and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and
other important factors that may cause the actual results, level of activity, performance or achievements
of Troilus to be materially different from those expressed or implied by such forward- looking statements,
including but not limited to: there being no assurance that the exploration program or programs of the
Company will result in expanded mineral resources; risks and uncertainties inherent to mineral resource
and reserve estimates; the high degree of uncertainties inherent to feasibility studies and other mining
and economic studies which are based to a significant extent on various assumptions; variations in gold
prices and other metals, exchange rate fluctuations; variations in cost of supplies and labour; receipt of
necessary approvals; availability of financing for project development; uncertainties and risks with respect
to developing mining projects; general business, economic, competitive, political and social uncertainties;
future gold and other metal prices; accidents, labour disputes and shortages; environmental and other
risks of the mining industry, including without limitation, risks and uncertainties discussed in the
Company’s latest Annual Information Form, its technical reports and other continuous disclosure
documents of the Company available under the Company’s profile at www.sedarplus.ca. Although Troilus
has attempted to identify important factors that could cause actual results to differ materially from those
contained in forward- looking statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking statements. Troilus
does not undertake to update any forward- looking statements, except in accordance with applicable
securities laws.