Mosaic Signs Letter of Intent to Sell Up to 100% Interest in the Lichen Project

MONTREAL, April 26, 2024 (GLOBE NEWSWIRE) -- Mosaic Minerals Corporation (CSE: MOC) (“Mosaic” or “The Company”) is pleased to announce that it has entered into a letter of intent dated April 25, 2024 (the “LOI”) with Castlebar Capital Corp (TSX-V: CBAR.P) (“Castlebar”). Pursuant to the LOI, Castlebar will be granted an option to acquire (the “Transaction”) up to a 100% interest in the Lichen Project (the “Lichen Project” or “Property”). The Transaction is intended to be Castlebar’s “Qualifying Transaction” for purposes of the TSX Venture Exchange’s (the “Exchange”) Capital Pool Company program.

The Lichen Project consists of 282 claims covering a total area of 15,622 hectares and is located approximately 100 km west of the Chibougamau mining camp. The property is underlain by the volcanic rocks of the Obatogamau formation intruded by stocks and plutons of intermediate composition. The volcanic belt is parallel to two known gold bearing volcanic belt, the Bachelor Lake gold area to the west and the Osisko-Windfall gold area to the south. The Nelligan Gold project and The Monster Lake Gold project are located at the eastern extremity of the volcanic belt. Numerous gold and copper showings are also found to the east and to the west of the property.

Terms of the LOI:

Pursuant to the LOI, Castlebar may acquire up to a 50% undivided interest (the “First Option”) in the Lichen project from Mosaic by, among other things:

(i)	make aggregate cash payments of $205,000 to Mosaic as follows:
	(1)	$15,000 on the closing of Qualifying Transaction (the “Effective Date”);
	(2)	an additional $15,000 within six months following the Effective Date;
	(3)	an additional $50,000 on or before the first anniversary of the Effective Date;
	(4)	an additional $50,000 on or before the second anniversary of the Effective Date; and
	(5)	an additional $75,000 on or before the third anniversary of the Effective Date; and
(ii)	by issuing an aggregate of 1,350,000 shares to Mosaic as follows:
	(1)	250,000 shares no later than seven days following the Effective Date;
	(2)	an additional 350,000 shares on or before the first anniversary of the Effective Date;
	(3)	an additional 250,000 shares on or before the second anniversary of the Effective Date; and
	(4)	an additional 500,000 shares on or before the third anniversary of the Effective Date; and
(iii)	by incurring at least $750,000 in qualifying expenditures on the Property as follows:
	(1)	at least $150,000 in qualifying expenditures on the Property on or before the first anniversary of the Effective Date;
	(2)	at least $200,000 in cumulative qualifying expenditures on the Property on or before the second anniversary of the Effective Date; and
	(3)	at least $400,000 in cumulative qualifying expenditures on the Property on or before the third anniversary of the Effective Date.

Upon exercise of the First Option, Castlebar shall have forty-five (45) days to either (i) establish a joint venture with Mosaic in which each shall hold a 50% joint venture interest or (ii) exercise an additional option (“Additional Option”) to acquire an additional 50% interest in the Property by making a $150,000 cash payment and issuing 1,500,000 shares to Mosaic within the forty-five (45) day period. If Castlebar exercises the Additional Option, then it will have earned 100% undivided interest in the Property free and clear of all encumbrances except for a 2% net smelter royalty to be retained by Mosaic. Castlebar may accelerate and carry forward any of the cash payments, share issuances or work expenditures.