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VANCOUVER, British Columbia, Jan. 14, 2022 (GLOBE NEWSWIRE) -- Solstice Gold Corp. (TSXV: SGC) (“Solstice”, “we”, “our” or the “Company”) is pleased to announce that it has received final approval from the TSX Venture Exchange for the acquisition of: (i) a 50% interest in the Jackpine Project (“Jackpine”) pursuant to a Property Sale Agreement dated December 10, 2021 (the “Property Purchase Agreement”) with Gravel Ridge Resources Ltd. (“Gravel”) and 1544230 Ontario Inc. (“1544230” and together with Gravel, the “Sellers”); and (ii) an option (“Option”) to acquire a 100% interest in the Nights Sky Project (“Nights Sky”) pursuant to an Option Agreement dated December 10, 2021 (the “Option Agreement”) with 1544230 (the “Optionor”) (see news release dated December 16, 2021).
Pursuant to the Property Purchase Agreement, Solstice issued a total of 400,000 common shares (“Common Shares”) in the capital of Solstice to the Sellers (collectively, the “Jackpine Payment Shares”) and has granted a 1.25% net smelter return (“NSR”) royalty on the Jackpine in favour of the Sellers, 0.5% of which may be repurchased by Solstice for $500,000 at any time prior to the commencement of commercial production on the Jackpine. Solstice now owns a 100% interest in Jackpine.
Pursuant to the Option Agreement, Solstice paid the Optionor $12,000 in cash and issued 200,000 Common Shares to the Optionor (the “Option Payment Shares” and collectively with the Jackpine Payment Shares, the “Payment Shares”). Subject to making the remaining cash payments under the Option Agreement, upon exercise of the Option, Nights Sky will be subject to a 1.5% NSR royalty in favour of the Optionor, 0.5% of which may be repurchased by Solstice for $500,000 any time after the exercise of the Option and prior to the commencement of commercial production.
The Payment Shares are subject to a four-month statutory hold period from the date of issuance in accordance with applicable Canadian securities legislation.
About Solstice Gold Corp.
Solstice is a gold-focused exploration company with three, district-scale projects in established mining regions of Canada. Our 174 km2 Red Lake land position is located on the northern extensions of the prolific Red Lake Gold Camp in Ontario. RLX is approximately 45km from the Red Lake Mine Complex owned by Evolution Mining. The Company is funded for phase one drilling in Red Lake. Our newly formed 225km2 Atikokan Gold Project is approximately 23km from the Hammond Reef Gold Project owned by Agnico Eagle Mines Limited and is funded for a robust field program in 2022. Our district scale Qaiqtuq Gold Project covers 886 km2 with certain other rights covering an adjacent 683 km2, hosts a 10 km2 gold boulder field and is fully permitted with multiple drill-ready targets. Qaiqtuq is located in Nunavut, Canada, only 26 km from Rankin Inlet and approximately 7 km from the Meliadine gold deposits owned by Agnico Eagle Mines Limited.
Solstice is committed to responsible exploration and development in the communities in which we work.
For more details on Solstice Gold, our exploration projects and details on our recently acquired portfolio of projects please see our Corporate Presentation available at www.solsticegold.com.
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 release.
On Behalf of Solstice Gold Corp.
Mike Timmins, Chief Executive Officer
For further information on Solstice Gold Corp., please visit our website at www.solsticegold.com or contact:
Phone: (604) 283-7234
Cautionary Note Regarding Forward-Looking Statements and Information
This news release contains certain forward-looking statements (“FLS”) including, but not limited to statements relating to [the exercise of the Option, including the cash payments payable in connection therewith, the grant of the royalty under the Option Agreement, the Company’s right to repurchase certain portions of the royalties granted under the Property Purchase Agreement and the Option Agreement, and the Company’s planned exploration activities]. FLS can often be identified by forward-looking words such as “approximate or (~)”, “emerging”, “goal”, “plan”, “intent”, “estimate”, “expects”, “potential”, “scheduled”, “may” and “will” or similar words suggesting future outcomes or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. There is also no guarantee that continued exploration at Solstice exploration projects, all of which are at an early stage of exploration, will lead to the discovery of an economic gold deposit. Factors that could cause actual results to differ materially from any FLS include, but are not limited to the future impacts of the COVID 19 pandemic and government response to such pandemic, the ability of the Company to continue exploration at its projects during the pandemic and the risk of future lack of access to the projects as a result thereof, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inability to locate source rocks, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, regulatory approvals and other factors. FLS are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.
Potential shareholders and prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the FLS. Shareholders are cautioned not to place undue reliance on FLS. By their nature FLS involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Solstice undertakes no obligation to update publicly or otherwise revise any FLS whether as a result of new information, future events or other such factors which affect this information, except as required by law.
This news release contains information with respect to adjacent or other mineral properties in respect of which the Company has no interest or rights to explore or mine or acquire. Readers are cautioned that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties, nor is there certainty that Solstice’s projects will contain economic mineralization. This news release mentions other companies that are unrelated to Solstice and this does not imply any agreements, partnerships or rights with respect to any of these companies or their properties other than where explicitly defined. Past performance is no guarantee of future performance and all investors are urged to consult their investment professionals before making an investment decision.