ST. JOHN’S, Newfoundland and Labrador, Feb. 12, 2021 (GLOBE NEWSWIRE) -- Vulcan Minerals Inc. (“the Company” - “Vulcan” TSX-V: VUL), is pleased to announce that it has entered into an Option Agreement with Sassy Resources Corporation (CSE: SASY, Sassy) whereby Vulcan has agreed to option to Sassy a 100% interest in the Gander Belt Gold properties (624 claims) in central Newfoundland. Pursuant to the terms of the Agreement, total aggregate consideration payable by Sassy to Vulcan is $400,000 cash over four years ($100,000 payable immediately), exploration expenditures of $2 million over four years ($200,000 in Year 1), and 2.5 million shares of the company over four years as follows:
- 1,000,000 common shares due upon signing
- 300,000 common shares on the first anniversary of the agreement
- 300,000 common shares on the second anniversary
- 400,000 common shares on the third anniversary
- 500,000 common shares on the fourth anniversary
Vulcan will retain a 3% net smelter royalty (NSR) covering the 624 claims. Sassy has the right to repurchase one-half of that NSR (1.5%) for $2,000,000 in cash and 500,000 common shares within one year following delivery to Vulcan of a Feasibility Report on any deposit advanced on the properties.
Vulcan had strategically staked eight properties for gold potential in central Newfoundland where a staking rush has occurred as a result of New Found Gold’s Corp’s very high grade gold discovery at the Keats zone. This deal provides the Company with a credible partner to advance exploration on these properties. A drill permit application has been submitted to the provincial government in relation to the Gander North property where compelling gold in till anomalies warrant testing.
Patrick Laracy, President noted, “We are very pleased to have a partner of Sassy’s quality with the exceptional team and resources to pursue the exploration of this land package. Given our equity exposure to Sassy as a result of this deal our shareholders will have leverage to Sassy’s other projects including their gold-silver exploration in the Eskay Camp in British Columbia.”
The Company maintains its interest in the Red Cross Lake gold-nickel property adjacent to Marathon Gold Corporation in central Newfoundland and its copper-gold Springdale/Colchester property in north central Newfoundland adjacent to Maritime Resources Corp. Updates on both projects will be provided shortly.
Patrick J. Laracy, P.Geo, President is the qualified person responsible for the contents of this news release as defined in National Instrument 43-101.
Vulcan Minerals is a precious and base metals exploration company based in St. John’s Newfoundland. The company has a strategic land position in three active Newfoundland gold exploration and development belts. It also holds 57 % of the shares in Red Moon Resources Inc. (TSXV: RMK), an industrial minerals company active in Newfoundland and Labrador.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors beyond the Company’s control may affect the actual results achieved. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except by law, the Company undertakes no obligation to publicly update or revise forward-looking information.
For information please contact:
Patrick J. Laracy, P.Geo.
President
(709) 754-3186
laracy@vulcanminerals.ca
www.vulcanminerals.ca