ROUYN-NORANDA, QC, Aug. 4, 2022
/CNW Telbec/ - Visible Gold Mines Inc. (TSXV:
VGD) (FRANKFURT: 3V41) is pleased to announce that it has
entered into a mineral option agreement (the "Agreement") with EEE
Exploration Corporation ("EEE"), a company listed on the CSE,
pursuant to which EEE has an option to acquire a 50% undivided
interest in the MegaLi Property (the "Property"). The MegaLi
Property is comprised of a total of 78 mining claims covering
a total area of 3,996.67 hectares and is located in the James Bay
Region in the Province of Québec.
Under the Agreement, EEE has the option (the "Option") to
acquire a 50% interest in the Property by: making aggregate cash
payments of $325,000 to Visible Gold
Mines ($25,000 on execution of the
Agreement, $50,000 on the first
anniversary of the Agreement, $100,000 on the second anniversary of the
Agreement, and $150,000 on the third
anniversary of the Agreement); issuing an aggregate of 3,000,000
Class A common shares of EEE (each, a "Share") to Visible Gold
Mines (500,000 Shares on execution of the Agreement, 700,000 Shares
on the first anniversary of the Agreement, 800,000 Shares on the
second anniversary of the Agreement, and 1,000,000 Shares on the
third anniversary of the Agreement); and incurring at least an
aggregate amount of $1,850,000 in
exploration expenditures on the Property (at least $350,000 on or before the first anniversary of
the Agreement, at least an additional $500,000 on or before the second anniversary of
the Agreement, and at least an additional $1,000,000 on or before the third anniversary of
the Agreement). The Shares issued under the Agreement will be
subject to a four month hold period pursuant to applicable
securities laws.
On successful exercise of the Option, EEE will have acquired a
50% undivided interest in the Property and the parties will be
deemed to have formed a joint venture for the purposes of the
continued exploration of the Property. Under the joint venture, EEE
will be the first operator on the Property and each party will be
required to contribute its proportionate share of all Property
expenditures or be diluted accordingly. If a party is diluted to a
2% or lower joint venture interest in the Property, then that
party's interest in the Property will convert into a 2% net smelter
returns royalty.
About Visible Gold Mines
Inc.
Visible Gold Mines is a corporation focused on gold in the
prolific Abitibi Gold Belt and the
James Bay region in the province
of Quebec. Visible Gold Mines has
33,827,039 common shares outstanding.
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 the release.
Forward-Looking
Statements
This news release contains statements that may constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking information may
include, among others, statements regarding the future plans,
costs, objectives or performance of Visible Gold Mines, or the
assumptions underlying any of the foregoing. In this news release,
words such as "may", "would", "could", "will", "likely", "believe",
"expect", "anticipate", "intend", "plan", "estimate" and similar
words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should not
be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether, or the times at
or by which, such future performance will be achieved. No assurance
can be given that any events anticipated by the forward-looking
information will transpire or occur, including the consumption of
the Option by EEE, the future value of the Shares to be issued to
Visible Gold Mines under the Agreement, and the receipt and timing
of additional payments required to be made by EEE pursuant to the
Agreement. Forward-looking information is based on information
available at the time and/or management's good-faith belief with
respect to future events and are subject to known or unknown risks,
uncertainties, assumptions and other unpredictable factors, many of
which are beyond Visible Gold Mines' control. These risks,
uncertainties and assumptions include, but are not limited to,
those described under "Financial Risks" and "Risk Factors" in
Visible Gold Mines' Annual Report for the fiscal year ended
July 31, 2021, a copy of which is
available on SEDAR at www.sedar.com, and could cause actual events
or results to differ materially from those projected in any
forward-looking statements. Visible Gold Mines does not intend, nor
does Visible Gold Mines undertake any obligation, to update or
revise any forward-looking information contained in this news
release to reflect subsequent information, events or circumstances
or otherwise, except if required by applicable laws.
SOURCE Visible Gold Mines Inc.