VANCOUVER, British Columbia, Nov. 22, 2022 (GLOBE NEWSWIRE) -- Prosper Gold Corp. (“Prosper Gold” or the “Company”) (TSXV:PGX) is pleased to announce that it has exercised its previously announced option under the Option Agreement dated August 9, 2020 (the “Option Agreement”) between the Company and Sabina Gold & Silver Corp. (“Sabina”) to acquire a 100% interest (the “100% Interest”) in the Golden Sidewalk property ( the “Golden Sidewalk Property”) and the Skinner property (together with the Golden Sidewalk Property, the “Properties”) consisting of approximately 3,000 hectares of mineral claims, leases and patents in the Red Lake mining district of Ontario.
“The exercise of the Option approximately 2 years ahead of schedule represents a significant milestone for the Company,” commented Peter Bernier, CEO. “This solidifies Prosper’s ownership of 160 square kilometers of mining claims and leases in a world-class mining jurisdiction.”
In order to acquire the 100% Interest in the Properties, the Company has (i) issued an aggregate of 1,500,000 common shares from its treasury to Sabina; (ii) paid an aggregate of $50,000 in cash to Sabina; and (iii) incurred expenditures on the Properties of not less than $2,600,000. Concurrent with the Company’s previously announced acquisition of a 70% interest in the Properties on February 7, 2022, the Company and Sabina entered into Royalty Agreements (the “Royalty Agreements”) pursuant to which Prosper Gold will pay to Sabina (i) a 2.0% net smelter returns royalty ("NSR") on the proceeds from the production and sale of all ores, minerals, metals and materials (“Products”) mined or removed from the Golden Sidewalk Property and (ii) 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).
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 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. An additional highly prospective target area was defined in 2021, termed the Skinner North Target Area, where 2022 channel sampling results include 9.69 gpt gold over 3.0 metres and 13.13 gpt gold over 1.8 metres and till samples containing up to 1,014 gold grains, was drilled for the first time in November of 2022. Historical drilling by previous operators at the Bathurst Mine, Joe Vein, KT vein, Dunkin and Vihonen prospects reported high-grade gold intercepts which have yet to be followed up by Prosper Gold.
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.
For a detailed overview of Prosper Gold please visit www.ProsperGoldCorp.com
ON BEHALF OF THE BOARD OF DIRECTORS
Per: “Peter Bernier”
President & CEO
For further information, please contact:
President & CEO
Prosper Gold Corp.
Cell: (250) 316-6644
Unless otherwise specified, all dollar amounts used herein refer to the law currency of Canada.
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Royalty Agreements. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, the Company’s ability to implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditions; adverse industry events; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks. Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this news release represent the expectations of the Company as of the date of this news release, and, accordingly, are subject to change after such date. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
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