VANCOUVER, BC – July 27, 2020 – Gambier Gold Corp. ( TSX-V: GGAU ) (the “Company” ) is pleased to announce that it has entered into a property option agreement (the “ Option Agreement ”) with Altus Capital Partners (“ Altus ”) and Luke Schuss (“ Schuss ”, together with Altus, the “ Optionors ”), in respect of the Detour West Property located in Ontario (the “Detour West Property ”).
Under the terms of the Option Agreement, the Company has an option to acquire a 100% interest in the Detour West Property (the “ Option ”) by cash and share issuances (6,000,000 shares):
(a) making cash payment to the Optionors in the aggregate of $40,000 within five days of the date of acceptance of the Option Agreement by the TSX Venture Exchange (“ TSXV ”) for filing (the “ Acceptance Date ”);
(b) issue 2,000,000 common shares of the Company (“ Common Shares ”) to
Optionors (as to 1,000,000 Common Shares each) following the Acceptance Date;
(c) issue 2,000,000 Common Shares to the Optionors (as to 1,000,000 Common Shares each) within one year from the Acceptance Date; and
(d) issue 2,000,000 Common Shares to the Optionors (as to 1,000,000 Common Shares each) within two years from the Acceptance Date.
The cash payments and Common Share issuances outlined above will be divided equally between the Optionors.
Upon exercise of the Option, the Optionors shall retain a 2.5% net smelter royalty (the “ Royalty ”) on all minerals produced from the Detour West Property. The Royalty will be divided equally between Altus and Schuss, meaning that each of Altus and Schuss shall retain a 1.25% Royalty on the Detour West Property. The Royalty can be reduced by an aggregate 1% to 1.5% if the Company pays $500,000 to the Optionors (or $250,000 to each Optionor for a 0.5% buy back from each Optionor) at any time before the Detour West Property reaches commercial production.
The Option Agreement and the share issuance thereunder is subject to approval by the TSXV.
Detour West Property
The Detour West Property is 18,929 hectares in size (approximately 32 km long and 6 km wide) and located approximately 300 km northeast of Timmins and 185 km northeast of Cochrane by road in the northwestern part of the Abitibi Greenstone Belt within the southern part of the Superior Province in Ontario.
The Detour West Property is located approximately 20 km west of the open-pit Detour Lake Gold Mine acquired by Kirkland Lake Gold Inc. in January 2020. Gold mineralization at the Detour Lake Gold Mine is characteristic of greenstone-hosted orogenic lode gold style deposits. The Detour Lake Gold Mine produced 601,566 ounces of gold in 2019 and has proven and probable mineral reserves of 447,450 Kt at an average grade of 0.97 g/t Au for 14,847,000 contained gold ounces as of December 31, 2019.
(source: Kirkland Lake Gold Inc. website https://www.kl.gold/our-business/resources-and-reserves/default.aspx )
Please refer to cautionary statements shown below. The Detour Lake area is comprised of thick sequences of mafic to ultramafic volcanic rocks referred to as the Deloro Assemblage (DA) in structural contact to the south with the younger sediments of Caopatina Assemblage (CA). This contact between the DA and CA is characterized by a regional scale thrust zone referred to as the Sunday Lake Deformation Zone (SLDZ). The structures of the SLDZ are spatially related to most of the gold mineralization observed in the Detour Lake area. Exploration work on the Detour West Property by previous operators appears to indicate that the property may be underlain by previously underexplored and unrecognized extensions of the rock units contained within the Sunday Lake, Massicotte and Lower Detour deformation zones that host the adjacent Detour Lake gold deposit.
In 2016, Tri Origin Exploration flew a helicopter-borne geophysical survey over the eastern part of the Detour West Property. Magnetic results from this geophysical survey confirmed Tri Origin’s initial interpretations of the presence of the western extension of rock units and fault structures hosting the nearby Detour Lake Gold Mine. These responses flank the northern and southern boundaries of a west-northwest trending magnetic low interpreted to represent the westward extension of the Caopatina Assemblage, which is also present within the Detour Lake and Lower Detour gold deposits.
The Company is in the process of assembling a technical team with extensive experience working in the Detour Lake greenstone belt including the Detour West Property.
Cautionary Statements and Data Verification
This news release contains scientific and technical information with respect to adjacent or similar mineral properties in the Detour Lake region, which the Company has no interest in or rights to explore. Readers are cautioned that information regarding mineral resources and reserves and gold mineralization on adjacent or similar properties is not necessarily indicative of the presence of gold mineralization on the Detour West Property.
A Qualified Person has verified the scientific and technical data disclosed in this news release by reviewing historical information on the Detour West Property from the public records (i.e. geological papers and mineral assessment reports). Production figures and mineral reserves for the Detour Lake Gold Mine disclosed in this news release were verified by reviewing continuous disclosure documents filed on SEDAR by Detour Gold Corp (up to January 2020) and Kirkland Lake Gold Inc. (January 2020 to current) and other public disclosure documents.
Update to Private Placement
The Company is also pleased to announce an update to the non-brokered private placement of Common Shares (the “ Offering ”) previously announced on June 4, The Offering will now be a non-brokered private placement of up to 3,750,000 units (each a “ Unit ”) of the Company at a price of $0.06 per Unit for gross proceeds of up to $225,000. Each Unit will consist of one Common Share and one-half of one common share purchase warrant (each whole warrant, a “ Warrant ”). Each Warrant will be exercisable into one Common Share at a price of $0.15 per Common Share
for a period of three years from closing.
Net proceeds from the Offering will be used for exploration at its Hemlo (Ontario) and Urban Barry (Québec) gold projects and for general working capital purposes.
All securities will be subject to a four-month hold period from the closing date of the Offering. Finder’s fees may be payable, subject to the policies of the TSXV. The Offering is subject to the approval of the TSXV.
Qualified Person Statement
The scientific and technical information contained in this news release was
prepared and approved by Paul Ténière, M.Sc., P.Geo., Senior Geologist at Mercator Geological Services Ltd. and a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101).
ON BEHALF OF THE BOARD
Michael E. Schuss
President & CEO
For further information, please contact:
Gambier Gold Corp.
Phone: (604) 279-6263
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation. 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.