VANCOUVER, British Columbia, July 29, 2019 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (PGM – TSX-V) (“Pure Gold” or the “Company”), Wabauskang First Nation, and Lac Seul First Nation (together the “First Nations”) are pleased to announce the signing and implementation of a Project Agreement (the "Agreement") with respect to Pure Gold’s Madsen Red Lake Mine (“Madsen”) located in Red Lake, Ontario. This Agreement establishes a long-term, mutually-beneficial partnership between Pure Gold and the First Nations.
Under the terms of the Agreement, Pure Gold acknowledges and respects the rights, history and interests that both the Wabauskang First Nation and the Lac Seul First Nation have in the region surrounding Madsen. In turn both First Nations acknowledge and support Pure Gold’s rights and interests in the development and future operation of Madsen. The Agreement provides for communication, cooperation, and collaboration between the First Nations and Pure Gold, and establishes a framework for support for current and future operations of the Madsen Red Lake Mine and defines the long-term benefits for the First Nations.
A traditional signing ceremony and celebration are planned to be held in the coming weeks.
Highlights of the Project Agreement include:
- Confirms the First Nations collaboration with Pure Gold in support of the operational permitting process for the Project and all subsequent regulatory authorizations;
- Establishes a foundation for employment opportunities, direct contracting opportunities, and Pure Gold’s commitment and support for education and training initiatives;
- Confirms Pure Gold’s commitment to sustainable development, to protecting the environment, and direct support for environmental monitoring;
- Provides for the issuance of 500,000 shares of Pure Gold to each First Nation subject to regulatory approval; and,
- Establishes future financial contributions by Pure Gold commensurate with production.
Chief Doug Riffel of Wabauskang First Nation commented, “We believe our People recognized the wealth of our Nation when we signed our Treaty and did so in the spirit of sharing. The signing of this agreement with Pure Gold recognizes our inherent rights, provides for ongoing informed consent and the sharing of the benefits from economic activity within our territory. We look forward to a long lasting, respectful and beneficial relationship with our partners, Lac Seul First Nation and Pure Gold.
Chief Derek Maud added, “Lac Seul First Nation is pleased to be signing this agreement and participating in the success of the Madsen Red Lake Mine. We believe the opportunities created by this Project will be realized in a sustainable manner that benefits all communities and will bring economic prosperity to the region.”
“We are very excited to be formalizing this agreement today,” stated Darin Labrenz, President and CEO of Pure Gold. The establishment of a long-term partnership with the support and participation of the Wabauskang First Nation and Lac Seul First Nation is key to the successful development of the Madsen Red Lake Mine. This agreement demonstrates Pure Gold’s commitment to developing mutually beneficial and cooperative relationships, and establishing long term benefits for the communities of Wabauskang and Lac Seul.”
About Wabauskang First Nation
Wabauskang First Nation is an Anishinaabe community. A signatory to Treaty 3, Wabauskang is the most northern community in the Treaty 3 territory. Wabauskang's community and reserve lands are located approximately 100 kilometres south of Red Lake, Ontario. Wabauskang is committed to the protection of Mother Earth, sharing the benefits of the land and creating opportunities for future generations.
About Lac Seul First Nation
Lac Seul is located approximately 38 kilometres northwest of Sioux Lookout. The Lac Seul First Nation has a large population and land base, which is bounded to the north and the east by the northeastern boundary of Treaty 3 territory. The First Nation is made up of four communities: Kejick Bay, Canoe River, Whitefish Bay, and Frenchman's Head. The Lac Seul First Nation is the oldest First Nation in the Sioux Lookout District of INAC. The reserve was established pursuant to Treaty 3, through adhesion in 1874.
About Pure Gold Mining:
Pure Gold is a Canadian focused gold developer. It has recently released the feasibility study for its flagship project, the Madsen Red Lake Mine, which outlines a 12 year mine life, current probable reserves of one million ounces at 9 g/t Au in 3.5 million tonnes, an 800 tonne per day underground mining operation with comparatively low initial capital cost and strong financial performance. In addition, exploration targets and satellite resources not considered in the feasibility study suggest potential opportunities for near-term growth.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
Adam Buchanan, Manager, Investor Relations
Gareth Tredway / Annabel de Morgan – Tavistock
Tel: +44 (0) 20 79207150
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, the growth potential of the Madsen Gold Project and opportunities for scalability, the potential for Russet South, Fork and Wedge to be economically viable, potential conversion of inferred resources to measured and indicated resources, potential extension and expansion of mineral resources and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 20, 2019 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.
Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.