Symbol: TSX-V: CLM
VANCOUVER, Sept. 24, 2018 /CNW/ - Crystal Lake Mining Corporation (the "Company" or "Crystal Lake Mining") is pleased to announce that it has signed a Letter Agreement with Romios Gold Resources Inc. for an option to acquire a 100% interest in the 436 sq. km Newmont Lake Project in the prolific Golden Triangle, immediately south of Galore Creek (Newmont and Teck) and north-northwest of key projects in the highly active Eskay Camp.
Newmont Lake Project Highlights:
- Vastly under-explored district-scale land package with multi-commodity potential in the heart of the Eskay Rift;
- 22 documented mineral occurrences adjacent to the high-grade Northwest gold zone (historic resource) which is open for expansion;
- Immediate (October) planned drill program at Burgundy Ridge target (never previously drilled) at southwestern end of project where a continually receding snowfield has exposed broad areas of copper-gold-silver mineralization;
- Major new infrastructure improvements in the region (roads, bridges, power, AltaGas camp) have enhanced access and will accelerate the discovery process.
Richard Savage, Crystal Lake President and CEO, commented: "To gain a foothold in such a prominent mining district with an exceptional land package featuring both scale and untapped exploration potential will drive value for CLM shareholders. With Newmont Lake and our Nicobat Project in northwest Ontario, we're on track for a very exciting finish to 2018."
Dr. Peter Lightfoot, Crystal Lake Technical Adviser, added: "The combination of mapping programs by the B.C. Geological Survey and operators going back to the 1980's, coupled with new airborne electromagnetic methods, places the Newmont Lake Project in a whole new light. It is strategically positioned to achieve a place in the world's next great mining camp."
To acquire a 100% interest in the 436 sq. km Newmont Lake Project, Crystal Lake must complete the following:
$8 million in exploration expenditures at Newmont Lake over the next three years ($3 million in Year 1 and $2.5 million in each of Years 2 and 3);
$2 million in cash option payments to Romios as follows: $250,000 on signing of Letter Agreement (paid) and a further $250,000 payable on each of 90 days, 180 days and 270 days following regulatory approval of transaction; a final $1 million payment upon Crystal Lake earning its 100% interest;
A total of 12 million shares of Crystal Lake will be distributed to Romios over a three-year period – 4 million each year, with the first 4 million shares issued following regulatory approval of the transaction (subject to normal hold period and a "lock up" provision).
Crystal Lake will be the operator during the earn-in period, and Romios will have the right to appoint one director to the CLM board.
Romios will retain a 2% Net Smelter Returns Royalty (NSR) on the Newmont Lake Project, or on any after-acquired claims within a 5 km radius of the current boundary of the project, which may be reduced at any time to a 1% NSR on the payment of $2 million per 0.5% NSR.
The Letter Agreement is subject to TSX Venture Exchange approval and the execution of a Definitive Agreement within 45 days.
Dr. Lightfoot concluded, "The planned upcoming drill program at Burgundy Ridge should further underscore the compelling potential of this project. We look forward to extensive data compilation and reinterpretation over the coming months, and quickly advancing this exciting project."
The technical information in this news release has been reviewed and approved by Dr. Peter C. Lightfoot, P.Geo., a Qualified Person responsible for the scientific and technical information in this news release under National Instrument 43-101 standards.
About Crystal Lake Mining
Crystal Lake Mining is a Canadian-based junior exploration company focused on building shareholder value through the discovery of new magmatic nickel sulfide deposits and other deposit types using technical excellence in exploration target development.
On behalf of The Board of Directors of Crystal Lake Mining Corporation,
Richard Savage, President & CEO
This news release may contain certain "forward looking statements". Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Neither 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.
SOURCE Crystal Lake Mining Corporation