Vancouver, B.C. - TheNewswire - April 9, 2021 - Jayden Resources Inc. (TSXV:JDN) (OTC:PNMLF) (“Jayden” or the “Company”) announces that it has received approval from the TSX Venture Exchange (“TSXV”) to acquire a 100% interest in the Storm Lake Gold Property (the “Property”) located on the Frotet-Evans Greenstone Belt in central Quebec.
On February 17, 2021, the Company announced that it had entered into a property option agreement with three arm’s length vendors (the “Optionors”) to acquire a 100% interest in the Property by making cash and share payments to the Optionors totaling $750,000 and 6,600,000 post-consolidation common shares respectively (see the Company’s news release dated February 10, 2021 for information on the 3 for 1 consolidation).
Under the terms of the agreement, upon the Company completing the consolidation (the “Effective Date”), the Company will pay $200,000 and issue 2,200,000 shares to the Optionors. On the nine (9) month anniversary of the Effective Date an additional 2,200,000 shares will be issued. On the fifteen (15) month anniversary of the Effective Date an additional $300,000 and 2,200,000 shares; and on the thirty (30) month anniversary of the Effective Date a further $250,000.
Jayden must also incur $3,000,000 in exploration expenditures on the Property over the course of 3 years by spending not less than $150,000 on or before the 12-month anniversary of the Effective Date; a further $1,350,000 on or before the 24-month anniversary of the Effective Date; and a further $1,500,000 on or before the 36-month anniversary of the Effective Date. The Optionors will retain a 2.5% net smelter royalty on the Property which may be reduced at any time to 1.5% by paying the Optionors $1,500,000.
Jayden also agreed that should a future independent technical report, prepared in accordance with National Instrument 43-101 standards, confirm the existence of a mineral resource on the Property containing at least 500,000 ounces of gold in the measured and indicated categories that it will pay the Optionors a payment of $500,000 in cash, or, at the option of Jayden, in shares at an issue price equal to the 10-Day Volume-Weighted Average Price (“VWAP”) of the shares prior to the issuance date. Further, upon completion and delivery of a positive economic study (scoping, preliminary economic assessment, pre-feasibility, feasibility, etc.) on the Property, Jayden will also pay to the Optionors $500,000, in cash, or, at the option of Jayden, in shares at an issue price equal to the 10-Day VWAP of the shares prior to the issuance date. Jayden 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.
The Property consists of 48 contiguous claims that cover a gross area of approximately 2,610 hectares and is located in the middle of the Frotet-Evans Greenstone Belt which also hosts the former Troilus Mine, which during its mine life produced more than 2.0 million ounces of gold and nearly 70,000 tons of copper from 1996 to 2010 (Troilus Gold Corporate Presentation – Feb. 2021 – www.troilusgold.com). New discoveries by Troilus Gold Corp. (TSX:TLG) have them focused on mineral expansion (4.96Moz AuEq indicated plus 3.15Moz AuEq inferred – Troilus Gold Corporate Presentation – Feb. 2021) and the potential restart of the former mine.
Technical information in this press release was reviewed by Jeannot Théberge Géo. (OGQ), recognized as a Qualified Person under the guidelines of National Instrument 43-101.
On Behalf of the Board:
President & CEO
FORWARD LOOKING STATEMENTS: 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. Jayden Resources 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
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.
Copyright (c) 2021 TheNewswire - All rights reserved.