Vancouver, BC – February 10, 2022 – Finlay Minerals Ltd. (TSXV: FYL) (the “Company") announces that it has entered into a binding letter of intent for the option of a 70% interest in its wholly-owned PIL Property to ATAC Resources Ltd. (“ATAC”) exercisable for consideration totaling $1.9 million and $12 million of work. The PIL Property, which was purchased from Electrum Resource Corporation in 1999 and augmented in 2001, is in the Toodoggone Mining District of British Columbia and is neighboured by TDG Gold Corporation’s Sable/Baker Property, Canasil Resources’ Brenda Property, AMARC Resource’s Joy Property and Questex Gold & Copper’s Sofia Property. The PIL Property is also 25km northwest of the former Kemess South Mine and 15 km east of Benchmark Metal’s Lawyer’s Project. Pursuant to the letter of intent, ATAC may exercise the option and acquire a 70% interest in the Property by making aggregate cash payments of $650,000 and share payments having an aggregate cash equivalent value of $1,250,000, and incurring an aggregate of $12,000,000 in exploration expenditures in staged amounts on or before December 31, 2026. Following the exercise of the option, ATAC and Finlay will hold interests in the Property of 70% and 30%, respectively, and a joint venture will be formed. Robert Brown, the Company’s President and Chief Executive Officer states that: “Finlay management is very pleased to have the ATAC team involved in funding the PIL property. ATAC has a proven and professional team of geologists, and the wherewithal to advance PIL using all the most modern exploration techniques.” The PIL Property is subject to a 3% net smelter return royalty held by Electrum Resource Corporation, a private company the outstanding voting shares of which are held by a former director of the Company and members of his family, including the current directors John A. Barakso and Ilona B. Lindsay. The Company has a right to buy back ½ of the royalty (1.5%) for an aggregate payment of $2,000,000. This buy-back right will be transferred to the joint venture following the exercise of the option in consideration for ATAC assuming the obligation to fully fund the $2,000,000 buy-back right as long as its interest in the joint venture exceeds 50%. The option is subject to acceptance by the TSXV. About Finlay Minerals Ltd. Finlay Minerals Ltd. trades under the symbol "FYL" on the TSX Venture Exchange. For further information and details please visit the Company's website at www.finlayminerals.com. The Company’s properties are: - the Silver Hope Property which includes porphyry copper-molybdenum mineralization discovered in 2010, along with three silver-copper mineralized zones, in a contiguous trend with the mined-out deposits of the former Equity Silver Mine; (Reference: https://minfile.gov.bc.ca/Summary.aspx?minfilno=093L++001).
In 2020 and 2021 the Equity East and Allin Zones were defined by geochemistry and geophysics. The Silver Hope Property surrounds the former Equity Silver Mine; - the ATTY Property which is contiguous to the north side of the Kemess East deposit and adjacent to the Kemess Underground deposit of Centerra Gold Inc., and
- the PIL Property, which is adjacent to Sable Resource’s Baker Mine, has nine known mineralized zones including the recently discovered and expanded Pillar East gold-silver structural system. The Company is focused on the discovery of copper-gold-molybdenum porphyry systems on the PIL Property.
On behalf of the Board of Directors, Robert F. Brown, P. Eng. President & CEO For further information, contact: Finlay Minerals Ltd. Robert Brown, President & CEO Tel: 604-684-3099 rbrown@finlayminerals.com |