Mountain Lake to acquire Caledonia Brook option Mountain Lake to acquire Caledonia Brook option
Mountain Lake Minerals Inc (C:MLK)
Shares Issued 34,673,011
Last Close 10/30/2017 $0.045
Tuesday October 31 2017 - News Release
Mr. Paul Smith reports
MOUNTAIN LAKE OPTIONS CALEDONIA BROOK GOLD PROJECT IN CENTRAL NEWFOUNDLAND FROM NEW DAWN RESOURCES INC.
Mountain Lake Minerals Inc. has entered into a definitive option agreement with New Dawn Resources Inc. for the exclusive right to acquire a 100-per-cent interest (subject to a 1.5-per-cent net smelter return royalty) in New Dawn's Caledonia Brook gold project near Grand Falls-Windsor in central Newfoundland. The property consists of two mineral licences (licence 024324M and licence 024327M) covering 53 map-staked claims for a total contained area of 1,325 hectares. The project area lies along a belt of highly mineralized, multiple lithologies extending from south of Marathon Gold's Valentine Lake property at Victoria Lake, northeastward to Grand Falls-Windsor, a distance of more than 160 kilometres.
Paul Smith, president and chief executive officer of Mountain Lake Minerals, commented, "We look at this option as an important part of the company's strategic growth plan and we look forward to proceeding with our exploration plan along this gold-rich mineral belt."
On closing of the grant of the option ("Closing"), Mountain Lake will issue to New Dawn 50,000 common shares of Mountain Lake at a deemed price of 10 cents per share and pay $10,000 to New Dawn. To exercise the Option, Mountain Lake must issue to New Dawn 150,000 common shares at a deemed price of $0.20 per share on or prior to the first anniversary of the date of Closing and 250,000 common shares at a deemed price of $0.30 per share on the second anniversary of the date of Closing, make an additional cash payment to New Dawn of $25,000 on or prior to the third anniversary of the date of Closing, and incur at least $175,000 in exploration expenditures on the property, of which at least $25,000, $50,000 and $100,000 must be incurred by each of the first, second, and third anniversary dates of the date of Closing, respectively. In addition, if Mountain Lake has received assay results prior to the third anniversary of the date of Closing showing that at least one rock assay sample from the exploration work on the property contains one or more ounces of gold per tonne ("Target Results"), then it will issue a further 350,000 common shares to New Dawn at a deemed price of $0.40 per share.
All shares to be issued to New Dawn under the option agreement will be subject to a hold period not exceeding four (4) months and one day. New Dawn will retain a 1.5% NSR Royalty ("Royalty") and Mountain Lake will have the unfettered right to buy back 1% of the Royalty for $1,500,000. Both parties have the preferential right to include as part of the Option additional interests acquired by the other within the two (2) kilometer area of interest surrounding the two (2) licences subject to the Option.
Director Bill Fleming acknowledged, "This exciting project, located along the highly prospective mineral belt that also hosts the Marathon Gold Valentine Lake project, represents an exciting new opportunity for Mountain Lake and reflects the Company's commitment for continuing growth."
Paul Smith, P. Geo., President and CEO of Mountain Lake, is a qualified person under National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and approved the information in this news release.