TORONTO, ONTARIO – February 9, 2021 – Stone Gold Inc. (TSX-V: STG) (“Stone Gold” or the “Company“) is pleased to announce that it has entered into two non-binding letters of intents (the “LOIs”) with current claims holders to earn a 100% interest in certain mineral claims in Batchewana Bay, Ontario making up the East Breccia property and the Tribag Mine property (collectively, the “Properties”), respectively.
The transactions contemplated by the LOIs will provide Stone Gold the option to acquire:
- a 100% interest in the East Breccia property, over a 48 month period, by making total cash payments of $165,000 to the current claims holders (the “Vendors”), issuing a total of 800,000 common shares of the Company (“Common Shares”) to the Vendors, incurring cumulative exploration expenditures of $300,000, and granting of a 2% net smelter royalty, all in amounts and in accordance with timeframes to be negotiated and determined by the parties prior to executing a binding, definitive agreement respecting the transaction upon Stone Gold completing its due diligence investigations; and
- a 100% interest in the Tribag Mine property, over a 48 month period, by making total cash payments of $75,000 to the Vendors, issuing a total of 1,500,000 Common Shares to the Vendors, incurring cumulative exploration expenditures of $400,000, and granting of a 2% net smelter royalty, all in amounts and in accordance with timeframes to be negotiated and determined by the parties prior to executing a binding, definitive agreement respecting the transaction upon Stone Gold completing its due diligence investigations.
The validity and exclusive dealings of the LOIs will remain in force until February 26, 2021. The Vendors are entirely arm’s length from the Company.
The East Breccia and former Tribag Copper Mine properties, a combined 3,390 hectares, encompass multiple copper rich breccia bodies some of which were mined in the late 1960s to early 1970s with an official stated production of 1,218,000 tons grading 1.52% Cu. The breccia bodies are part of a series of known copper deposits containing historic resources and numerous showings trending west southwest onto the Company’s Coppercorp Property including the Richards Breccia, Jogran Porphyry, Kincaid Breccia and the historic Coppercorp Mine which reported production of 1.02 million tons grading 1.16% copper, plus silver and gold credits from 1965 to 1972. The value of the Tribag and East Breccia properties deposits is enhanced by the discovery of significant values of silver, tungsten, molybdenum, rhenium and gold associated with the mineralized bodies which have not been properly investigated to date.
The acquisition is accompanied by a voluminous historic database, when combined with the Coppercorp and Glenrock data, the Company has a unique opportunity to compile an integrated district scale three-dimensional exploration model for the Batchewana Mining District. The Company plans to implement new techniques and apply current technologies never utilized in this district. The purpose is to generate a focused drill test program that will delineate world class base and precious metal resources for further development.
Stone Gold President and CEO John Timmons states “The consolidation of the Batchewana Bay greenstone belt is long overdue. We look forward to working with all stakeholders to explore for and develop natural resources in a mutually beneficial and sustainable manner.
Additionally, the Company has staked 35 claim units linking the Coppercorp Property to the East Breccia and Tribag claims resulting for the first time in the creation of a contiguous claims package in the Batchewana Bay greenstone belt totalling approximately 21,400 hectares. This enlarged district scale Cu-Ag-W-Mo-Re-Co-Au property package represents an exciting opportunity to revive the Batchewana Bay mining district.”
The information in this press release has been reviewed and approved by Trevor Boyd, P. Geo., and a Qualified Person for the technical information under NI 43-101 standards.
The acquisition of the Properties is subject to approval of the TSX Venture Exchange and the Common Shares issuable in connection therewith will be subject to a statutory four month and a day hold period.
For further information, please contact:
Mr. John Timmons
President & CEO
Stone Gold Inc.
Cellular (416) 931 2243
Email: [email protected]