VANCOUVER, BC / ACCESSWIRE / April 22, 2021 / Lincoln Gold Mining Inc. (“Lincoln” or the “Company”) (TSXV:LMG) announces that it has entered into an option agreement (the “Agreement”) with an arm’s length vendor, Messrs. Fayz and Ramy Yacoub (together the “Optionor”) to acquire a 100% interest in the Shawinigan nickel, copper and cobalt property (the “Property”) located near Shawinigan, Quebec, Canada, halfway between Montreal and Quebec City.
As the Company continues to advance its Pine Grove Gold project in Nevada, management believes this is the right time to take advantage of the many opportunities in base metal exploration and production given the current short supply of these metals necessary for infrastructure and emerging technologies.
The Property consists of 21 contiguous mineral claims, covering a total of 12.4 square kilometers and is located 3 kilometers west of Shawinigan with excellent infrastructure including highways, power lines, water all nearby. The property was previously explored by Soquem Inc. of Quebec during 1971-1975 in 5 programs including geological mapping, soil and rock sampling, mineralogical investigation, magnetometer and EM surveys and some diamond drilling which hit low to medium grade nickel/copper mineralization.
Since then, helicopter EM/MAG surveys were completed in 2016 identifying 68 electromagnetic conductors in three cluster areas. Cobalt has been identified with the copper and nickel from the mineralogical investigations.
Past exploration has covered only a small area of the Property but has demonstrated significant potential for the discovery of Nickel-Copper (Ni-Cu) mineralization with zinc-cobalt as by products. All previous exploration is historical and not compliant with National Instrument 43-101 standards and should not be relied on as current. Further exploration work will be required to classify a current mineral resource or reserve.
Under the terms of the Agreement, the Company will pay the Optionor a total of $380,000 and issue a total of 2,100,000 shares over the course of 5 years in the following installments:
(i) $20,000 and 300,000 shares to be paid/issued within 30 days of the Effective Date (being the date of TSV approval);
(ii) $15,000 to be paid on or before the 25th of October, 2021;
(iii) An additional $15,000 and 300,000 shares to be paid/issued on or before the first anniversary of Effective Date;
(iv) An additional $20,000 on or before the 25th of October, 2022;
(v) An additional $20,000 and 300,000 shares to be paid/issued on or before the second anniversary of the Effective Date;
(vi) An additional $20,000 on or before the 25th of October, 2023;
(vii) An additional $40,000 and 300,000 shares to be paid/issued on or before the third anniversary of the Effective Date;
(viii) An additional $50,000 on or before the 25th of October, 2024;
(ix) An additional $50,000 and 400,000 shares to be paid/issued on or before the fourth anniversary of the Effective Date;
(x) An additional $50,000 on or before the 25th of October, 2025; and
(xi) An additional $80,000 and 500,000 shares to be paid/issued on or before the fifth anniversary of the Effective Date.
Lincoln must also incur $2,000,000 in exploration expenditures on the Property over the course of 5 years by spending:
(i) $250,000 within 12 months of the Effective Date;
(ii) An additional $250,000 within 2 years of the Effective Date;
(iii) An additional $500,000 within 3 years of the Effective Date;
(iv) An additional $500,000 within 4 years of the Effective Date; and
(v) An additional $500,000 within 5 years of the Effective Date.
Lincoln also agreed that should a future independent technical report, prepared in accordance with National Instrument 43-101 standards, confirm the existence of mineral reserves and resources on the Property that the Company will issue an additional 500,000 common shares to the Optionor.
Lincoln has the option to accelerate the payments and exploration expenditures to exercise the option at any time and thereby acquire its interest in the Property earlier. Upon exercise of the option, the Optionor retains a 2% Net Smelter Return royalty on metals produced from the Property. Lincoln will have the right to buy down the royalty to 1% for $1,500,000.
The Agreement is subject to the approval of the TSX Venture Exchange.
Mr. Paul Saxton, the Company’s President and CEO, is considered a “qualified person” under National Instrument 43-101, and has reviewed and approved the scientific and technical information contained in this news release. For more information, please contact Paul Saxton, President and CEO of the Company.
On behalf of Lincoln Gold Mining Inc.
President and CEO, Lincoln Gold Mining Inc.
Tel: (604) 688-7377, Email: [email protected]incolnmining.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, the continued advancement of the company’s general business development, research development and the Company’s development of mineral exploration projects. When used in this document, the words “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Lincoln Gold Mining Inc. believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
SOURCE: Lincoln Gold Mining Inc.
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