Prosper Gold Corp. (TSX-V:PGX) is pleased to announce that it has exercised its previously announced option under the Option Agreement dated August 9, 2020 between the Company and Sabina Gold & Silver Corp. to acquire a 70% interest in the Golden Sidewalk property and the Skinner property consisting of approximately 3,000 hectares of mineral claims, leases and patents in the Red Lake mining district of Ontario.
In order to acquire the 70% Interest in the Properties, the Company has (i) issued an aggregate of 900,000 common shares from its treasury to Sabina (800,000 common shares of which issued on the date hereof); (ii) paid an aggregate of $40,000 in cash to Sabina ($20,000 of which paid on the date hereof); and (iii) incurred an aggregate of $2,600,000 in expenditures on the Properties. The common shares issued to Sabina under the Option Agreement will be subject to a hold period of four months and one day.
In connection with the 70% Interest, the Company and Sabina will enter into Royalty Agreements pursuant to which Prosper Gold will pay to Sabina (i) up to a 2.0% net smelter returns royalty on the proceeds from the production and sale of all ores, minerals, metals and materials mined or removed from the Golden Sidewalk Property and (ii) up to a 1.0% NSR on the proceeds from the production and sale of Products mined or removed from certain “Additional Property” (as defined in the Option Agreement).
Under the Option Agreement, the Company has an option to acquire the remaining 30% interest in the Properties subject to the terms and conditions provided in the Option Agreement. The Company is working with Sabina and other relevant stakeholders to acquire the Additional Interest as soon as practicable hereafter.
About the Golden Sidewalk
The Golden Sidewalk is a district-scale gold exploration project covering over 160 square kilometres of contiguous mineral claims and mining leases (see the Company’s Aug. 10, Sept. 8, and Sept. 15, 2020 news releases for details) in the western Birch-Uchi Greenstone Belt, approximately 60 km east of Red Lake, Ontario. The vehicle-accessible project straddles 12 kilometres of the Balmer Assemblage – Narrow Lake Assemblage unconformity, a regional-scale feature that has been the Red Lake exploration guide, but which has seen limited exploration in the project area. The “Golden Corridor” lies immediately north of the unconformity and is characterized as a highly prospective trend of coincident favourable magnetic and resistivity lineaments supported by highly anomalous gold-in-till samples covering 7.0 by 0.5 kilometres.
The scientific and technical information in this news release has been reviewed by Rory Ritchie, P.Geo., Vice-President of Exploration for Prosper Gold and a Qualified Person under National Instrument 43-101.
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