VANCOUVER, BC, July 15,
2024 /CNW/ - Finlay Minerals Ltd. (TSXV: FYL)
(OTCQB: FYMNF) ("Finlay" or the "Company") is
pleased to announce that, further to its news release issued on
June 26, 2024, the Company has closed
its acquisition of the SAY Property from Electrum Resource
Corporation ("Electrum"). The acquisition was completed
pursuant to the terms of an agreement dated as of June 25, 2024 between the Company and Electrum
(the "Purchase Agreement"). The SAY Property is located in
northern British Columbia and
sits within the underexplored Bear Lake Corridor of the
Stikine Terrane with American Eagle Gold Corp.'s NAK property
to the south and Quartz Mountain Resource's Jake property to the
north.
Pursuant to the Purchase Agreement, Finlay acquired the SAY
Property, which comprises 18 mineral tenures totaling approximately
10,587 hectares, for consideration consisting of CDN$50,000 cash that was paid on closing (the
"Transaction").
The SAY Property is subject to a 1.5% net smelter return royalty
held by Electrum (the "NSR Royalty"), with Finlay retaining
the right to buy back one-half of the NSR Royalty (0.75%) for an
aggregate cash payment to Electrum in the amount of CDN$1,500,000 (the "Buy-Back
Right"). Lastly, if Finlay announces the results of, or
publicly files a positive feasibility study on the SAY Property,
Finlay will make an additional cash payment to Electrum of
CDN$300,000.
Electrum and Baril Developments Ltd., each of which is a private
British Columbia company
controlled by John A. Barakso, and
Ilona B. Lindsay, and a personal
trust of which John J. Barakso is
the sole trustee and of which Ilona B.
Lindsay and Dr. John A.
Barakso are beneficiaries, are the registered holders, in
the aggregate, of more than 20% of the voting rights attached to
the Company's issued and outstanding common shares. In addition,
each of Ilona B. Lindsay and Dr.
John A. Barakso is a director and/or
officer of the Company and Electrum. As a result, the Transaction
constituted a "related party transaction" within the meaning of TSX
Venture Exchange ("TSXV") Policy 5.9 and Multilateral
Instrument 61-101 – Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). The Company
relied on the exemptions from the formal valuation and minority
shareholder approval requirements of MI 61-101 provided by
subsections 5.5(a) and 5.7(1) (a) of MI 61-101, on the basis that,
at the time the Transaction was agreed to, neither the fair market
value of the SAY Property acquired pursuant to, nor the fair market
value of the consideration for, the Transaction exceeded 25% of
Finlay's market capitalization as determined in accordance with MI
61-101.
No finders' fees were paid in connection with the Transaction
and no new insiders or control persons were created. The
Transaction is subject to the final approval of the TSXV.
Robert Brown, President and Chief
Executive Officer of Finlay, states:
"The SAY caught our attention with recent exploration
work revealing a > 4.3 km trend on the Spur Target
with outcrop rock sampling of up to 15.8%
Cu and 993 g/t Ag. 78 of 129
rock samples collected to date yielded >1% Cu and 59 yielded
>100 g/t Ag over the 4.3 km trend. The copper -
silver values are associated with structures along a regional NNW
trending magnetic trend. Blow out zones associated with
structural junctions have been noted to 125m across and will be detail sampled for
grade-width bulk tonnage potential.
The second SHEL target also hosts an intriguing 3
km x 2 km circular magnetic anomaly with a coincident surface
gossanous zone and a copper - molybdenum soil geochemical
anomaly. We are planning and looking forward to our inaugural
exploration program later this summer."
Qualified Person:
Wade Barnes, P. Geo. and Vice
President, Exploration for Finlay and a qualified person as defined
by National Instrument 43-101, has reviewed and approved the
technical content of this news release.
About Finlay Minerals Ltd.
Finlay is a TSXV company focused on exploration for base and
precious metal deposits in northern British Columbia.
Finlay trades under the symbol "FYL" on the TSXV and under the
symbol "FYMNF" on the OTCQB. For further information and
details, please visit the Company's website at
www.finlayminerals.com
On behalf of the Board of Directors,
Robert F. Brown, P. Eng.
President & CEO
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
Forward-Looking Information: This news
release includes certain "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of applicable Canadian
securities legislation. All statements in this news release that
address events or developments that we expect to occur in the
future are forward-looking statements. Forward-looking
statements are statements that are not historical facts and are
generally, although not always, identified by words such as
"expect", "plan", "anticipate", "project", "target", "potential",
"schedule", "forecast", "budget", "estimate", "intend" or "believe"
and similar expressions or their negative connotations, or that
events or conditions "will", "would", "may", "could", "should" or
"might" occur. Forward-looking statements in this news release
include the exploration plans of the Company on the SAY Property
and obtaining regulatory approval for the Transaction. All such
forward-looking statements are based on the opinions and estimates
of management as of the date such statements are made. Although
Finlay believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include market
prices, exploration results, availability of capital and financing
and general economic, market or business conditions, and the other
risk factors described in Finlay's filings with Canadian securities
regulators on SEDAR+ at www.sedarplus.ca. These forward-looking
statements are based on a number of assumptions including, among
other things, assumptions regarding general business and economic
conditions, the timing and receipt of regulatory and governmental
approvals, the ability of Finlay and other parties to satisfy stock
exchange and other regulatory requirements in a timely manner, the
availability of financing for Finlay's proposed transactions and
programs on reasonable terms, and the ability of third-party
service providers to deliver services in a timely manner. Investors
are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
Finlay does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future or otherwise, except as required by applicable law.
SOURCE Finlay Minerals Ltd.