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Sirios Kicks Off 2022 Focused on its Cheechoo Gold Project, Signing a Strategic Agreement of $1.5M

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Sirios Kicks Off 2022 Focused on its Cheechoo Gold Project, Signing a Strategic Agreement of $1.5M

 

 

 

 

Sirios Resources Inc. (TSX-V: SOI) has attracted a $1.5 million investment by a strategic private investor, enabling management to advance both the re-assaying program (based on 1 kg gold-bearing pulp samples from previously-drilled core) and the preliminary economic assessment of the project.

 

Upon closing of this strategic financing later this month, Sirios will issue 21,500,000 common shares at 0.06$ per share and the Investor will own approximately 9.2% of the Company’s issued and outstanding shares, positioning it as Sirios’ second-largest shareholder, behind Newmont Corporation.

 

Dominique Doucet, CEO of Sirios said: “Even though Cheechoo was named the Discovery of the Year in 20161, we are planning for an even better year for the project in 2022! We expect to receive all assays from last summer’s drilling program by the end of Q2 2022 and more results from the 1 kg re-assaying program starting in June 2022. Early results from the re-assaying program let us expect an improvement of the Cheechoo deposit’s economic parameters when the program will be completed. Once we receive all the 2021 drilling results, we will complete an update of the mineral resource estimate as well as a preliminary economic assessment. So, with this hard-dollar financing in our coffers, Sirios is set to have a busy and newsworthy first six months of 2022.”

 

Sirios plans to spend most of the proceeds from the financing on further definition and analysis work at its Cheechoo gold project and use the remainder of the funds for working capital and corporate initiatives.

 

In connection with the financing, Sirios has granted the Investor royalties on certain of its secondary properties including:

  • A 1.0% Net Smelter Return royalty in respect of the Aquilon gold project, such royalty to be subject to Sirios having a buy-back right for three-quarters of this royalty (effectively 0.75% NSR royalty) upon the payment to the Investor of C$200,000 at any time prior to June 30, 2022;
  • A 0.5% Net Smelter Return royalty in respect of each of the Pontax, Maskwa, Niska and Tilly 2 projects, such royalties to be subject to Sirios having a buy-back right for one-half of each royalty upon the payment to the Investor of C$200,000 per exploration project.

 

The Agreement has been approved by the Board of Directors of Sirios and is subject to final approval of the TSX Venture Exchange. No finder’s fees will be paid for the placement. There will be a hold period of four months and one day on the common shares issued under this financing. As customary on strategic financings, and subject to it continuing to hold not less than 5% of the outstanding Sirios common shares, the Investor will be entitled to participate in subsequent equity and certain royalty and stream financings of Sirios as well as to designate one nominee to serve as a Director of the company.

 

About the Cheechoo Property

 

The Cheechoo gold property, wholly-owned by Sirios, is located in Eeyou Istchee James Bay, Quebec, less than 9 km from Newmont’s Eleonore gold mine. The latest resource estimate for the Cheechoo project (October 2020) estimated an inferred resource of 2.0 million ounces of gold contained in 93.0 million tonnes of rock at an average grade of 0.65 g/t Au, with significant potential to increase this resource (BBA, P-L. Richard, P. Geo.; J. Torrealba, P. Eng.; D. Evangelista, P. Eng., NI 43-101 Technical Report, Mineral Resource Estimate Update for The Cheechoo Project, 31/10/2020).

 

About Sirios

 

A pioneer in the discovery of significant gold deposits in Eeyou Istchee James Bay, Quebec, Canada, Sirios Resources Inc. is focusing primarily on its Cheechoo gold discovery, while actively exploring the gold potential of its other properties.

 

Posted January 17, 2022

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