1911 Gold Further Consolidates the Rice Lake District
TORONTO, ON, June 7, 2021 – 1911 Gold Corporation (“1911 Gold” or the “Company”) (TSX-V: AUMB) (OTCQX: AUMBF) is pleased to announce that it has signed a definitive agreement dated June 7, 2021, with StrikePoint Gold Inc. (“StrikePoint”) (TSX-V: SKP) with respect to the acquisition of 100 per cent interest in StrikePoint’s Angelina Property (the “Property”), located approximately 20 kilometres southeast of Bissett, Manitoba, site of the Company’s True North mill and tailings facilities.
The Property comprises 17 contiguous mining claims, totalling 2,300 hectares, that adjoin the Company’s Central Manitoba and Cryderman properties. These three properties, thus consolidated, extend continuously along the Rice Lake greenstone belt for over 19 kilometres and include highly prospective geology, several past-producing mines and significant gold showings, and the Company’s active Tinney and Bidou exploration projects.
Scott Anderson, Vice President, Exploration, commented: “This acquisition further consolidates the Company’s dominant, 55,600 hectare, land position in the Rice Lake greenstone belt, which represents the western extension of the prolific Red Lake belt in adjacent Ontario. The Property connects the Company’s Central Manitoba and Cryderman properties, covering a major structural corridor in the eastern Rice Lake belt that is a focus of the Company’s exploration activities. With over $500,000 in available excess work credits, the Property also provides 1911 Gold with added flexibility in managing its land holdings. Additionally, we look forward to following up on the quality exploration work completed by StrikePoint from 2010 to 2012 at Angelina, which included detailed mapping, prospecting, ground magnetic and induced polarization surveys, and diamond drilling of 1,601 metres in 16 drillholes”.
The terms of the transaction set out in the definitive agreement include:
- 1911 Gold will acquire 100 per cent of the Property
- 1911 Gold will issue 175,000 common shares to StrikePoint
- 1911 Gold will make a cash payment of $20,000 to StrikePoint
- StrikePoint will retain a 1.0 per cent net smelter returns royalty, which may be purchased by 1911 Gold at any time for payment of $500,000.
Sale of Greenbelt property
On June 3, 2021 the Company entered into a purchase agreement with Alliance Mining Corp. (“Alliance”) for the sale of 1911 Gold’s 50% interest in 27 contiguous mining claims, totalling 410 hectares, collectively known as the Greenbelt property, located south of Bissett, Manitoba. The Greenbelt property is not contiguous with either of the Company’s main claim blocks and is not an exploration priority. The Greenbelt property will be sold for a total consideration of C$500,000.00, payable in cash or shares of Alliance. Closing of the agreement remains subject to Alliance repurchasing any shares issued as consideration within 121 days of their issue date. The Company has an option to retain some or all of the shares issued as consideration for the first 90 days from their issue date, subject to Alliance’s right to repurchase the shares.
1911 Gold has had preliminary discussions with Alliance regarding milling of any gold ores identified and produced from its properties in the future. Any agreement to process third party ore will remain subject to the capacity of the Company’s mill after first prioritizing the Company’s own production.
1911 Gold continues to actively explore the most prospective portions of its dominant land position, with emphasis on multiple projects in the Rice Lake and Central Manitoba blocks, the latter recently expanded through the Angelina acquisition outlined above.
About 1911 Gold Corporation
1911 Gold is a junior explorer that holds a highly prospective, consolidated land package totalling 55,500 hectares within and adjacent to the Archean Rice Lake greenstone belt in Manitoba, and also owns the True North mine and mill complex at Bissett, Manitoba, where it is reprocessing historic tailings on a seasonal basis. 1911 Gold believes its land package is a prime exploration opportunity, with potential to develop a mining district centred on the True North complex. The Company also owns the Tully and Denton-Keefer projects near Timmins, Ontario, and intends to focus on both organic growth opportunities and accretive acquisition opportunities in North America.
1911 Gold’s True North complex and exploration land package are located within the traditional territory of the Hollow Water First Nation, signatory to Treaty No. 5 (1875-76). 1911 Gold looks forward to maintaining open, co-operative and respectful communication with the Hollow Water First Nation in order to build mutually beneficial working relationships.
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO
For further information, please contact:
Chief Financial Officer