Vatic Enters into Option Agreement for the Hansen Gold Property in Northern Quebec and Announces Private Placement of up to $500,000
Vatic Enters into Option Agreement for the
Hansen Gold Property in Northern Quebec and
Announces Private Placement of up to
$500,000
Vancouver, British Columbia--(Newsfile Corp. - September 22, 2021) - Vatic Ventures Corp. (TSXV:
VCV.H) (the "
Company
" or "
Vatic
") is pleased to announce that it has entered into an option
agreement with Shadow Ventures Corp. ("Shadow") to acquire a gold exploration property known as the
Hansen prospect located in the Chibougamau area of northern Quebec (the "Property"). The Property,
which consists of 20 contiguous mining claims representing a total area of 1,113.98 hectares is
approximately 15 kilometers southeast of the Chapais-Opemiska Mine Complex (Springer, Perry and
Cooke Copper-Gold mines).
Hansen Property
The Property is located in the northeast corner of the Matagami-Chibougamau Greenstone Belt of the
Abitibi Sub province of the Archean Superior Structural Province. The geology is dominated by massive
and pillowed mafic to intermediate lava flows of the Obatogamau Formation.
The Property is underlain by andesitic volcanic and altered rocks containing iron carbonate, pyrite,
graphite and micro gabbro. The most prominent structural features in the area of the Property are
northwest trending faults and shear zones along which the historic Hansen drilling programs intersected
gold values. These structural elements provide the dominant structural control hosting most of the
mineralized zones on the property. Gold mineralization and quartz veining on the property is associated
with these northwest structural elements.
Previous stripping and drilling exploration programs delineated a mineralized zone (Hansen Zone) 15
meters wide over a strike length of 250 meters. The Hansen Zone was evaluated with the deepest hole
intersecting the zone at a depth of 175 meters. Past and recent mineral exploration programs on the
property have outlined favorable geological environments for high grade gold mineralization represented
by surface showings and diamond drilling results.
Historic Hansen Prospect
The Hansen prospect is a gold prospect that was discovered in 1952, located at GPS: 519630 E-
5503278 N, NTS Map sheet 32G/10. It is a vein type deposit, marked by a mineralized zone measuring
250 meters in length and up to 15 meters in width. It is known to exist from the surface down to a vertical
depth of 175 meters and is oriented at N150° with a steep dip towards the southwest.
Gold mineralization is associated with altered iron carbonatized rocks associated with northwest-
southeast oriented shear zones. Mineralization is composed of visible gold in smoky quartz veins
parallel to the shear and pyrite disseminated in the iron carbonate alteration zone, often within a graphitic
envelope. Mineralization is associated with northwest-southeast trending shear structures of varying
widths to 15 meters containing ankerite alteration zones.
Gold assay results from surface sampling and diamond drilling showed exceptional results such as a
grab sample of 112.5 g/t Au by Almar Mining Corp. (Quebec Gov. Assessment Files GM.04836).
Prospector Larry Desgagné reported surface grab samples of 33.25 g/t Au, 34.92 g/t Au, 31.63 g/t Au,
33.25 g/t Au, and 12.04 g/t Au in 2008. He also reported intersections of 12.8 g/t Au over 1.05 meters,
7.94 g/t Au over 1.05 meters and 75.29 g/t Au across 0.3 meters from a small diamond drill program
(Quebec Gov. Assessment Files GM.64102).
From Loren Currie, CEO of Vatic: "We are excited to be strategically situated in a very active exploration
area with over 6.7 million ounces of gold produced in the greater Chibougamau district. Furthermore, the
results from the previous surface sampling and diamond drilling done on the Hansen prospect has
shown exceptional gold values."
Option Agreement Terms
Shadow acquired the right to acquire the Property from Fayz Yacoub and Ramy Yacoub (the "Underlying
Optionors") pursuant an agreement dated October 1, 2020, an amending agreement dated April 8,
2021, and a second amending agreement dated August 9, 2021 (together, the "Underlying Option
Agreement"). Vatic has agreed, pursuant to its option agreement with Shadow (the "Vatic Option
Agreement") to option the rights and obligations from Shadow as provided for in the Underlying Option
Agreement by satisfying the requirements of the Underlying Option Agreement and by providing Shadow
with additional consideration.
In order to satisfy the requirements of the Underlying Option Agreement and the Vatic Option Agreement
the Company will, subject to the approval of the TSX Venture Exchange (the "Exchange"), issue the
shares, make the cash payments and complete the exploration expenditures as follows:
Shares
a
.
At the option of the Company either issue 500,000 shares or issue such number of shares equal to
Cdn$100,000 (based on the 10 day volume weighted average price of the Company's shares prior
to October 1, 2021;
b
.
On closing issue 7,000,000 shares which will be issued pro rata to the shareholders of Shadow;
c
.
On the date that a National Instrument 43-101 Technical Report on the Property is submitted to the
Exchange at the option of the Company either issue an additional 500,000 shares or such number
of shares equal to Cdn$100,000 (based on the 10 day volume weighted average price of the
Company's shares prior to the date of issuance;
d
.
On or before October 1, 2022 a further 750,000 shares;
e
.
On or before October 1, 2023 a further 1,000,000 shares; and
f
.
On the declaration of proven reserves supported by a National Instrument 43-101 Technical Report
reserve calculation report that Shadow deems economically feasible to continue developing the
Property a further 500,000 shares.
Cash
a
.
$40,000 on closing;
b
.
$40,000 on October 1, 2021;
c
.
$45,000 on October 1, 2022; and
d
.
$50,000 on October 1, 2023.
Expenditures
a
.
$50,000 on or before November 1, 2021;
b
.
A further $200,000 on or before October 31, 2022; and
c
.
A further $500,000 on or before October 31, 2023.
Vatic Ventures Corp. is a NEX Issuer, therefore this may be a Reactivation as per NEX Policy 2.6. The
transaction may also result in a Change of Control as it will result in new shareholders holding a minimum
of 39% of outstanding shares. Shareholder approval will be required for a Change of Control.
Private Placement Financing
The Company is pleased to announce a non-brokered private placement financing (the "Financing") for
aggregate gross proceeds of up to $500,000. The Company will be offering units of the Company (the
"Units") at a price of $0.20 per Unit. Each Unit will be comprised of 1 common share of the Company
and one half of a common share purchase warrant (the "Warrants"), with each full Warrant being
exercisable for an additional common share of the Company at $0.30 for 12 months. In connection with
the Financing the Company may pay finders fees in accordance with the policies of the NEX Board of
the TSX Venture Exchange. All securities issued pursuant to the Financing will be subject to a 4 month
hold period. The issuance of the Units and payment of any finder's fees are subject to the receipt of all
regulatory approvals.
Qualified Person -
The technical content of this news release has been reviewed and approved by
Mitchell E Lavery, PGeo, who is a Qualified Person as defined by National Instrument 43-101, Standards
of Disclosure for Mineral Projects.
ABOUT VATIC VENTURES CORP.
The Company is actively reviewing and evaluating exploration and development opportunities in the
mineral resources industry.
ON BEHALF OF THE BOARD OF DIRECTORS OF VATIC VENTURES CORP.
"Loren Currie"
Loren Currie, Director
604-307-8745
"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
release." The information contained herein contains "forward-looking statements" within the meaning
of applicable securities legislation. Forward-looking statements relate to information that is based on
assumptions of management, forecasts of future results, and estimates of amounts not yet
determinable. Any statements that express predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not statements of historical fact and may
be "forward-looking statements." Forward-looking statements are subject to a variety of risks and
uncertainties that could cause actual events or results to differ from those reflected in the forward-
looking statements. Investors are cautioned against attributing undue certainty to forward-looking
statements. These forward-looking statements are made as of the date hereof and the Company does
not assume any obligation to update or revise them to reflect new events or circumstances. Actual
events or results could differ materially from the Company's expectations or projections.
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https://www.newsfilecorp.com/release/97367