TORONTO, Oct. 25,
2023 /CNW/ - 1911 Gold Corporation ("1911 Gold" or
the "Company") (TSXV: AUMB) (OTC: AUMBF) is pleased to announce
that, based on the positive findings received by Grid Metals Corp
("Grid") from the scoping study completed by the Primero
Group on the True North processing mill, Grid is proceeding with
the lease agreement previously announced in the news release on
July 18, 2023 (Link Here).
The original letter agreement provided for a 90 day period
during which Grid, working with the Primero Group, would complete a
technical scoping study. This scoping study would assess the
viability and cost of modifying the existing True North processing
mill to allow for the processing of spodumene pegmatite (lithium
ore) from Grid's Donner Lake Property to produce a saleable lithium
concentrate. With the positive findings from this study, Grid has
the information required to proceed to the next step in the mill
lease agreement and both companies are working to complete a
Definitive Lease Agreement in the near term.
"We are pleased to be proceeding with the mill lease agreement
and the positive results of the work completed by the Primero
Group." Shaun Heinrichs, President
and CEO, stated, "We have worked closely with both companies over
the last several months to provide the information required and
create alternative approaches where possible to minimize the
overall cost of the project. With the mill lease agreement in
place, we are able to continue focusing on re-assessing the
existing True North underground resource and preparing to advance
other near mine project areas, such as the Central Manitoba project, to create a pipeline
for future sources of gold ores."
Certain terms in the original letter agreement have been
modified in order to reduce the near-term funding requirements for
Grid, while leaving the overall mill lease agreement substantially
intact. The terms that were modified were as follows:
- Toll milling agreement terms for the processing of 1911 Gold
ores during the lease period have been modified to increase the
minimum available processing capacity for gold ores.
- The remaining payments to 1911 Gold have been modified to the
following:
- An equity investment of C$400,000, subject to the applicable regulatory
approvals. If regulatory approval cannot be obtained, Grid shall
make a corresponding cash payment to 1911 Gold.
- C$600,000 lease payment will be
paid to 1911 Gold by October 25, 2023
($50,000 already paid), with an
additional $500,000 to be paid as
financial assistance when Grid completes an equity raise of not
less than C$1,000,000. Financial
assistance payments are non-interest bearing but secured by the
True North mill, with such security to be released upon termination
of either the original letter agreement or, once completed, the
Definitive Lease Agreement.
- Financial assistance payment of C$500,000 to 1911 Gold's financial security
obligations to the Province of Manitoba (relating to the mine closure plan
for the True North complex) for the period ending April 30, 2024, with an additional C$1,000,000 due by the end of 2024 and a final
C$900,000 due by the end of
2025.
- With the completion of the 90 day due diligence period, Grid
can only terminate the Agreement once it has made a cumulative
total of C$2,250,000 in total
payments.
All other terms as described in the July
18, 2023 news release remain unchanged.
About 1911 Gold
Corporation
1911 Gold is a junior explorer that holds a highly prospective,
consolidated land package totalling more than 63,000 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. 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 Apex project near Snow Lake,
Manitoba and the Tully and Denton-Keefer projects near
Timmins, Ontario, and intends to
focus on both organic growth 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, and all local
stakeholders, in order to build mutually beneficial working
relationships.
ON BEHALF OF THE BOARD OF DIRECTORS
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This news release may contain forward-looking statements. Often,
but not always, forward-looking statements can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or describes a "goal", or variation of such words and phrases or
state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
All forward-looking statements reflect the Company's beliefs and
assumptions based on information available at the time the
statements were made. Actual results or events may differ from
those predicted in these forward-looking statements. All of the
Company's forward-looking statements are qualified by the
assumptions that are stated or inherent in such forward-looking
statements, including the assumptions listed below. Although the
Company believes that these assumptions are reasonable, this list
is not exhaustive of factors that may affect any of the
forward-looking statements.
Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors which
may cause the actual results, performance or achievements to be
materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or
implied by the forward-looking statements. All statements that
address expectations or projections about the future, including,
but not limited to, statements about exploration plans and the
timing and results thereof, are forward-looking statements.
Although 1911 Gold has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
All forward-looking statements contained in this news release
are given as of the date hereof. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except in accordance with applicable securities
laws.
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.
SOURCE 1911 Gold Corporation