Precipitate Closes Agreements to Secure Rights to Acquire Motherlode Gold Project in Newfoundland, Canada with TSX Venture Approval
Vancouver, B.C. – August 26, 2021 - Precipitate Gold Corp. (the “Company” or “Precipitate”) (TSXV: PRG, OTCQB: PREIF) is pleased to announce, further to the Company’s news release dated August 17, 2021, Precipitate has received TSX Venture Exchange (the Exchange”) approval to close the previously announced property acquisitions and option agreements (the “Agreements”) granting the Company rights to acquire a 100% interest in certain mineral exploration licenses totalling 12,350 hectares making up the Motherlode Gold Project (the “Motherlode Project” or the “Project”) located within the Burin Peninsula of southern Newfoundland, Canada.
The effective date of the Agreements, being the date of receipt of Exchange approval, will be August 23, 2021. As per the terms of the Agreements, Precipitate has issued a total of $27,000 and 395,000 common shares of the Company. All securities issues will be subject to such resale restrictions by applicable securities laws, including National Instrument 45-102 of the Canadian Securities Administrators, and the rules and policies of the Exchange.
The Motherlode Project:
The Motherlode Project is comprised of 12,350 hectares on Newfoundland’s south coast. Access and logistical infrastructure are excellent, with year-round road access, high-power electrical lines running through the project, nearby Atlantic Ocean ports, and an active nearby industrial fluorite mine. The project represents district-scale potential within an estimated 16.5-kilometre-long exploration trend hosting 11 historical mineral occurrences, including 8 gold showings. Historical high-grade results* include:
- Gold rock grab samples: 25.0 g/t Au, 15.7 g/t Au, 11.6 g/t Au, 6.3 g/t Au & 4.5 g/t Au;
- Trench/Channel Results: 0.5m of 4.5 g/t Au, 1.5m of 10.1 g/t Au, 6.2m of 3.6 g/t Au (incl. 0.9m of 7.7 g/t Au); and
- 2007 Diamond Drill Results (8 holes, 902m): 0.7m of 3.2 g/t Au, 10.4m of 0.82 g/t Au, 1.5m of 2.8 g/t Au
For reference: g/t = grams per tonne, Au = gold, m = metres
The Company’s technical staff are currently conducting a detailed compilation and review of historical property data and have applied for permits to conduct a property-wide heliborne high sensitivity magnetics-radiometrics geophysical survey, planned for late September. The purpose of the magnetics-radiometrics geophysical survey is to identify and prioritize anomalous magnetic features within the property. Following receipt of the heliborne geophysical data, initial groundwork including prospecting, mapping and sampling will be conducted over selected geophysical and geochemical anomalies.
Option Terms for the Motherlode Project:
The Company entered into two underlying property option agreements granting Precipitate the exclusive right to earn a 100% interest in a combined 6,100 hectares of mineral exploration licences (the “Properties”) by fulfilling certain elective annual cash and share payments over a 4-year option term, as follows:
|Date||Cash||Precipitate Common Shares|
|On closing||$26,000 (paid)||370,000 (paid)|
|12 month Anniversary||$52,000||650,000|
|24 month Anniversary||$74,000||990,000|
|36 month Anniversary||$84,000||1,270,000|
|48 month Anniversary||$107,000||1,800,000|
Upon completion of the cash and share payments as set out above, Precipitate will have a 100% interest in the Properties, subject to certain net smelter returns (“NSR”). An additional $1,000 and 25,000 shares of the Company were issued as full payment for a 100% interest in a portion of the Project. See full Agreement details in the Company’s news release dated August 17, 2021.
* Note: Certain information and data in this news release concerning the Motherlode Project and past work done thereon and results therefrom are historical, being derived from publicly available sources including assessment reports and Newfoundland government technical sources. The reliability of some historical data is unknown but is considered relevant by Company management. The historical data may be non-NI 43-101 compliant and should not be relied upon. It is the Company’s intention to verify the historical data, however confirmation work may produce results that differ substantially from the historic results. High grade rock grab samples are selective by nature and are unlikely to represent average grades on the property.
This news release has been reviewed by Michael Moore, Vice President, Exploration of Precipitate Gold Corporation, the Qualified Person for the technical information in this news release under NI 43-101 standards.
About Precipitate Gold:
Additional information can be viewed at the Company’s website www.precipitategold.com.
On Behalf of the Board of Directors of Precipitate Gold Corp.,
President & CEO
For further information, please contact:
Tel: 604-558-0335 Toll Free: 855-558-0335 investorofprecipitategold.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Precipitate Gold Corp.’s (“Precipitate” or the “Company”) current beliefs and is based on information currently available to Company and on assumptions it believes are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Precipitate to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the exploration concessions may not be granted on terms acceptable to the Company, or at all; general business, economic, competitive, political and social uncertainties; the concessions acquired by the Company may not have attributes similar to those of surrounding properties; delay or failure to receive governmental or regulatory approvals; changes in legislation, including environmental legislation affecting mining; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although Precipitate has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Precipitate does not undertake to update any forward-looking information, except in accordance with applicable securities laws.