First Mining Finance To Acquire Pitt Gold Property First Mining Finance To Acquire Pitt Gold Property From Brionor Resources Inc.
March 7th, 2016
VANCOUVER, BC, CANADA – First Mining Finance Corp. (“First Mining”) and Brionor Resources Inc. (“Brionor”) are pleased to announce that the companies have entered into a purchase agreement (the “Agreement”) pursuant to which First Mining has agreed to acquire the gold development property known as the “Pitt Gold Property” from Brionor for an aggregate purchase price of CDN$1,250,000 (the “Pitt Gold Acquisition”) of which CDN$1,000,000 of the purchase price will be satisfied through the issuance of 2,535,293 common shares of First Mining to Brionor, based on the 20-day VWAP and the remaining CDN$250,000 will be paid in cash. The common shares issued to Brionor will be subject to a four-month hold period.
The Pitt Gold Property is located in the Abitibi Region of Quebec and is adjacent to Clifton Star Resources Inc.’s (“Clifton”) Duparquet Gold Project and Duquesne Gold Project. On June 11, 2011 Brionor announced a NI 43-101 compliant resource estimate for the Pitt Gold Property which, at a cut-off grade of 3.00 g/t gold, is estimated to have Indicated Resources of 600,000 tonnes grading 7.83 g/t gold (151,000 Au ounces) and Inferred Resources of 476,000 tonnes grading 6.91 g/t gold (106,000 Au ounces). As announced on February 12, 2016, First Mining has entered into a definitive arrangement agreement to acquire all of the issued and outstanding common shares of Clifton (the “Clifton Acquisition”). Subject to receipt of regulatory and shareholder approval, the Clifton Acquisition is expected to close on or about April 8, 2016.
The Pitt Gold Acquisition remains subject to regulatory approval and approval of the Brionor shareholders. Brionor anticipates that it will hold a special meeting of shareholders in the second half of April 2016 at which its shareholders will be asked to approve the Pitt Gold Acquisition.
Keith Neumeyer, Chairman of First Mining, stated: “The acquisition of the Pitt Gold Property will provide First Mining with an additional property in the Abitibi Region of Quebec which is one of the world’s most prolific gold producing regions. This acquisition will be complementary to the Clifton Star transaction and fits into First Mining’s growth and expansion plans.”
Full details of the Pitt Gold Acquisition will be included in a Management Information Circular that will be made available to Brionor shareholders in accordance with applicable securities laws.