Frontline provides update on its Red Lake Properties that are currently under Option
Toronto, Ontario - TheNewswire - May 21, 2020 - Frontline Gold Corporation (TSXV:FGC) ("Frontline" or the "Company") is pleased to announce an update on the status of four option agreements previously entered into with Pacton Gold Inc. ("Pacton"), between November 2018 and October 2019, on most of Frontline's 100% owned gold properties within the Red Lake Mining Division, Ontario ("Red Lake Properties").
In summary, the 4 option agreements to purchase entered into between Pacton and Frontline cover 262 mineral claims totaling approximately 4,900 Ha described below, are all in good standing with all scheduled cash and share payments per the option agreements' terms having been made.
Frontline retains net smelter return royalties ranging from 0.25% to 2.25% on all of the Red Lake Properties. Frontline currently has 325,000 shares of Pacton Gold.
Frontline's President and CEO, Mr. Walter Henry, "These 4 option agreements put the Company in an excellent position allowing it to capitalize on the development of the Red Lake Properties by Pacton. Through Pacton's exploration programs, its cash and share payments and the potential future net smelter returns, Frontline growth benefits. The cash and share payments provide Frontline with working capital and the funds to grow its land portfolio through additional property acquisitions."
Summary of Remaining Cash and Share Payments - due from Pacton Gold
Oct. 30 2020 $25,000 150,000 shares
Nov. 19, 2020 $40,000 75,000 shares
Mar. 5, 2021 $50,000 125,000 shares
Oct. 30, 2021 $25,000 150,000 shares
Oct. 30, 2022 $25,000 150,000 shares
Oct. 30, 2023 $15,000 150,000 shares
Total $180,000 800,000 shares
Summary and Description of the Option Agreements to Purchase:
1)November 2018 - Pacton (see Pacton press release dated November 6, 2018) announces that it has entered into an option agreement to purchase 12 mineral claims located in the Red Lake Mining Division, Ontario ("Red Lake"), for aggregate consideration of $110,000 and 250,000 common shares to be paid and issued over two years. The claims are subject to net smelter returns royalties ranging from 0.25% to 2.25%, half of which can be purchased by the Company for $250,000.
The 12 newly acquired mineral claims are strategically located between Pure Gold's Madsen and Wedge zone ground and Great Bear Resource's Dixie discovery.
2)January 2019 - Pacton (see Pacton press release dated January 30, 2019) announces that it has entered into an acquisition agreement with Frontline to acquire additional mineral claims in Red Lake. The property is comprised of 88 mineral claims totaling 1,760 Ha.
Under the terms of the agreement, Pacton purchased 100% of the property by issuing 192,310 common shares. The property is subject to net smelter return royalties totaling 2.25%. Pacton has the option to buy back a portion of the royalties for $250,000.
3)February 2019 - Pacton (see Pacton press release February 26, 2019) to acquire an additional 12 mineral claims in Red Lake. These additional mineral claims are located contiguous and to the north of Pacton's current landholdings and extend to within 3 km of Goldcorp's newest #3 production shaft. Pacton's Red Lake mineral claims are strategically located between Pure Gold's Madsen property, including the Wedge Zone, and Great Bear Resource's Dixie discovery. The property geology is made up of two key packages known to host significant gold mineralization in the district. The Confederation Assemblage and the Balmer Assemblage host the high-grade gold mineralization at Great Bear Resources' Dixie Project and Pure Gold's Madsen property, respectively. A high-resolution helicopter magnetics survey is underway to identify D2 structures and folding that are proposed to have significant control on gold mineralization in the district.
Under the terms of the agreement Pacton can earn a 100% interest in the property by:
1)completing a heli-mag survey on the Property; and
2)issuing an aggregate of 350,000 common shares and paying a total of $100,000 over a period of two years.
The property is subject to net smelter return royalties of 2.25%. Pacton has the option to purchase a portion of the royalties for $250,000 for each 0.25%.
4)October 2019 - Pacton (see Pacton press release October 31, 2019) announced that it has entered into an agreement whereby it has been granted an option to acquire a 100% interest in 150 mineral claims known as the Gullrock Lake Property, located in the Red Lake District, Ontario, subject to certain underlying royalties. The Gullrock Lake Property acquisition increased Pacton's land position by 2,700 ha in the Red Lake district.
The Gullrock Lake Property is underlain by rocks of the Balmer Assemblage and located within the prolific Red Lake Gold Trend. The Red Lake Gold Trend is a 5 km wide band with distinct structural characteristics, hosting multiple gold mines that have produced over 25 million ounces of gold.
Under the terms of the agreement Pacton can earn a 100% interest in the Gullrock Lake property by paying a total of $125,000 and issuing an aggregate of 750,000 common shares over a four-year period. Frontline will retain net smelter return royalties ranging from 0.25% to 2.25% on the Property, half of which can be purchased by the Company for an aggregated payment of $1,000,000.
"We will continue to provide more detailed information along with a corporate update in the very near term on all our properties, existing option agreements, and new option agreements entered into," said Walter Henry, CEO and President of Frontline.
Frontline continues to actively seek projects, and additional investor/partner(s) in order to continue to build upon its properties and net smelter return royalties.
About Frontline Gold Corporation
Frontline is a Canadian junior mineral exploration company. The Company's properties include the optioned gold projects in Red Lake area of Ontario, and Menderes gold project in the Izmir province of Western Turkey. Other Canadian exploration properties include other gold property groups in Ontario and include the Whitehorse Island Mining Patents.
Further information about the Company is available on the Company's website, www.frontlinegold.com , or our social media sites listed below:
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Contact: Walter Henry
Telephone: (416) 861- 9090
Frontline Gold Corp. (TSX-V: FGC)
372 Bay Street, Suite 301
Toronto, Ontario M5H 2W9
Walter Henry, President & CEO
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.