Vulcan Minerals Inc. Options Out Gander Gold Project
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946, Email: [email protected] Website: www.vulcanminerals.ca
News Release
February 12, 2021
Vulcan Minerals Inc. Options Out Gander Gold Project
St. John’s, Newfoundland and Labrador - Vulcan Minerals Inc. (“the Company” -
“Vulcan” TSX-V: VUL), is pleased to announce that it has entered into an Option
Agreement with Sassy Resources Corporation (CSE: SASY, Sassy) whereby Vulcan
has agreed to option to Sassy a 100% interest in the Gander Belt Gold properties
(624 claims) in central Newfoundland. Pursuant to the terms of the Agreement,
total aggregate consideration payable by Sassy to Vulcan is $400,000 cash over four
years ($100,000 payable immediately), exploration expenditures of $2 million over
four years ($200,000 in Year 1), and 2.5 million shares of the company over four
years as follows:
• 1,000,000 common shares due upon signing
• 300,000 common shares on the first anniversary of the agreement
• 300,000 common shares on the second anniversary
• 400,000 common shares on the third anniversary
• 500,000 common shares on the fourth anniversary
Vulcan will retain a 3% net smelter royalty (NSR) covering the 624 claims. Sassy has
the right to repurchase one -half of that NSR (1.5%) for $2,000,000 in cash and
500,000 common shares within one year following delivery to Vulcan of a Feasibility
Report on any deposit advanced on the properties.
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946, Email: [email protected] Website: www.vulcanminerals.ca
Vulcan had strategically staked eight properties for gold potential in central
Newfoundland where a staking rush has occurred as a result of New Found Gold’s
Corp’s very high grade gold discovery at the Keats zone. This deal provides the
Company with a credible partner to advance exploration on these properties. A drill
permit application has been submitted to the provincial government in relation to
the Gander North property where compelling gold in till anomalies warrant
testing.
Patrick Laracy, President noted, “We are very pleased to have a partner of Sassy’s
quality with the exceptional team and resources to pursue the exploration of this
land package. Given our equity exposure to Sassy as a result of this deal
our shareholders will have leverage to Sassy’s other projects including their gold-
silver exploration in the Eskay Camp in British Columbia.”
The Company maintains its interest in the Red Cross Lake gold-nickel property
adjacent to Marathon Gold Corporation in central Newfoundland and its copper-
gold Springdale/Colchester property in north central Newfoundland adjacent
to Maritime Resources Corp. Updates on both projects will be provided shortly.
Patrick J. Laracy, P.Geo, President is the qualified person responsible for the
contents of this news release as defined in National Instrument 43-101.
Vulcan Minerals is a precious and base metals exploration company based in St.
John’s Newfoundland. The company has a strategic land position in three active
Newfoundland gold exploration and development belts. It also holds 57 % of the
shares in Red Moon Resources Inc. (TSXV: RMK), an industrial minerals company
active in Newfoundland and Labrador.
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release. This release may contain certain
forward-looking statements. Actual events or results may differ from the
Company’s expectations. Certain risk factors beyond the Company’s control
may affect the actual results achieved. Accordingly, readers are advised not
to place undue
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946, Email: [email protected] Website: www.vulcanminerals.ca
reliance on forward -looking information. Except by law, the Company undertakes
no obligation to publicly update or revise forward-looking information.
For information please contact:
Patrick J. Laracy, P .Geo.
President
(709) 754-3186
www.vulcanminerals.ca