(TheNewswire)
Vancouver, BC, August 4 th
, 2017 / TheNewswire / July 4 2017 - FIRESTEEL RESOURCES INC. (TSX-V: FTR) (" Firesteel " or the " Company ") today announced that it has signed a Letter of Intent with Pandion Mine Finance, LP
( " Pandion ") for a financing of US$20.6 million via a
Prepaid Forward Gold Purchase Agreement. Proceeds will be used for the acquisition of up to 60% of the Nordic Mines Marknad AB
(“ Nordic Mines Marknad ”), owner of the past producing Laiva Mine gold property in Finland.
Nordic Mines Marknad will be operated as a joint venture between Nordic Mines AB (Publ) (“ Nordic Mines AB ”) and Firesteel. Firesteel will be the operator of the joint venture.
The US$20.6 million financing is subject to the completion of the remaining due diligence and the negotiation
and execution of a Prepaid Forward Gold Purchase Agreement. On completion of the agreement, funds will be received in two
tranches of US$15,600,000 with a tenor of 54 months and US$5,000,000 with a tenor of 46 months. These funds will be used to fund
necessary mine capital equipment and efficiency upgrades and the commencement of mining operations as well as general and
administrative costs and consulting fees.
Each tranche will have a grace period of 14 months after which the Company will deliver to Pandion a total of
60,540 ounces of gold for both tranches over the following 40 months. The Company will receive an amount per ounce of gold equal to
the market price at the time, less a fixed discount. During the term of the Agreement, Pandion will also share in the upside on any
increase in metal prices. The Company will have the right to buy out and terminate the Agreement at any time and its
obligations under the Agreement will be secured by a first charge over the Company’s assets.
Commenting on these developments, M ichael Hepworth, President and CEO of Firesteel stated,
“The Laiva Mine is a fully permitted past producing asset and securing this
acquisition marks a major step forward for Firesteel. Previous engineering and geological reports identify considerable gold
mineralization that the company is treating as a historical estimate and we are committed to moving swiftly to ensure the rapid
advancement of this project. While the transfer of funds is contingent upon the completion of the remaining due
diligence and the negotiation and execution of a Prepaid Forward Gold Purchase Agreement, our own extensive due diligence indicates
there should be no barriers to the closing of this transaction.”
"We visited the Laiva Mine with a multifaceted technical team to conduct technical due diligence during the
last week of July and are excited about a restart of the mine. We are delighted to be working with Firesteel on its acquisition and
restart of Laiva ," said Joe Archibald, Founding Partner of Pandion.
Disclosure: Companies typically rely on comprehensive feasibility reports on mineral
reserve estimates to reduce the risks and uncertainties associated with a production decision. The Company has not completed
a feasibility study on, nor has the Company completed a mineral reserve estimate at the Laiva Mine
and as such the financial and technical viability is deemed to have higher risk than if this work had been completed.
Based on historical engineering and geological reports, historical production data and current engineering work completed or
in process by Firesteel, the Company intends to move forward with the development of this asset.
About the Company
Firesteel is an exploration-stage
junior mining company engaged in the acquisition and exploration of prospective precious and base metal properties in Canada and
stable jurisdictions around the world. Firesteel is currently working to evolve from an exploration company to becoming a junior
producer.
On April 7, 2017, Firesteel first announced the signing of heads of agreement with Nordic Mines AB to form a
joint venture to operate and eventually acquire 100% of Nordic Mines Marknad, a wholly owned subsidiary of Nordic Mines AB. Nordic
Mines Marknad owns 100% of Nordic Mines OY, the operator of the fully permitted and past producing Laiva
Mine near Raahe in Finland.
*The historical estimate is based on a technical report(s) by SRK (UK) Limited for Nordic Mines AB,
issued in November 2013, and updated in a technical report dated March 2015 conforming to JORC (2012) reporting standards for
resource estimates. As Nordic Mines AB uses JORC resource categories, it should be noted that the confidence in the estimate
of JORC inferred mineral resources is not sufficient to allow the results of the application of technical and economic parameters
to be used for detailed planning. For this reason, there is no direct link from an inferred resource to inferred resource as
defined under NI43-10.
There are no more recent estimates or data available. To upgrade this work from an historical
estimate to a current mineral resource, the Company will review the data set and complete additional modeling work to verify
the historic estimate as a current mineral resource or mineral reserve. A qualified person has not done sufficient work to
classify the historical estimate, as current mineral resources or reserves, and the Company is not treating the historical estimate
as current mineral resources or reserves.
The Company further cautions that it is not basing any production decision on a feasibility study
of mineral reserves demonstrating economic and technical viability, and therefore there is a much greater risk of failure
associated with its production decision. In addition, readers are cautioned that inferred mineral resources are considered too
speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral
reserves.
Firesteel currently has one highly prospective property in British Colombia.
The Star property
is currently operated under a Joint Venture agreement between Firesteel (49%) and Prosper Gold. (TSX-V: PGX)
(51%).
About Pandion Mine Finance, LP
Pandion, headquartered in New York City, is a mining-focused investment firm backed by MKS PAMP Group and
Ospraie Management, LLC that provides flexible financing solutions to developing mining companies.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant,
P.Geo., a Qualified Person under National Instrument 43-101 and a director of the Company.
For a detailed overview of Firesteel Resources Inc. please visit:
www.FiresteelResources.com
For further information, please contact:
Michael Hepworth
President and Chief Executive Officer
(416) 419 5192
mhepworth@firesteelresources.com
www.firesteelresources.com
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Neither the 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
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements. Users of forward-looking statements
are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include,
but are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future
events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the
use of words such as “plans”, “expects” or “does not expect”, “is expected”, “ budget
”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved”. While the Company has based these forward-looking statements on its
expectations about future events as at the date those statements were prepared, the statements are not a guarantee of the Company’s
future performance. Although the Company believes that the expectations reflected in such forward-looking statements are
reasonable, it cannot give any assurance that such expectations will prove to be correct.
The Company’s forward-looking statements are expressly qualified in their entirety by this
cautionary statement and are made as of the date of this new release. Unless otherwise required by applicable securities
laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to
reflect subsequent information, events, results or circumstances or otherwise.
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