O3 Mining Sells Its Hemlo Properties to Canadian Orebodies; Files Early Warning Report

TORONTO, May 08, 2020 (GLOBE NEWSWIRE) -- O3 Mining Inc. (TSX.V:OIII) ("O3 Mining" or the "Corporation") is pleased to announce that it has sold its Hemlo properties located in the Hemlo mining district of Ontario to Canadian Orebodies Inc. ("Orebodies") in exchange for (i) 2,550,000 common shares of Orebodies (collectively, the "Consideration Shares"), and (ii) a discovery bonus of CDN $1,000,000, payable in cash or shares at Orebodies' option, if ever, if in the future Orebodies publishes a feasibility study in respect of the Hemlo properties containing at least 2,000,000 ounces of gold categorized as Probable Mineral Reserves, Proven Mineral Reserves or a combination thereof (the "Hemlo Transaction").

After giving effect to the issuance of the Consideration Shares, O3 Mining now holds an aggregate of 10,211,500 common shares of Orebodies ("Orebodies Shares"), representing approximately 15.4% of the issued and outstanding Orebodies Shares on a basic basis.

O3 Mining President and CEO Jose Vizquerra commented: "We are pleased to announce that we are continuing to maximize value for our shareholders by finding strategic partners for our non-core exploration assets. The structure of this all-stock deal, together with a discovery bonus on the Hemlo properties, will enable us to gain exposure to a much larger property package in what is a quickly becoming an emerging gold district in Ontario, as well as benefit from Orebodies' success as we are a significant shareholder."

Early Warning Report

As a result of its acquisition of the Consideration Shares, O3 Mining has filed an early warning report in respect of its holdings in Orebodies.

Prior to the Hemlo Transaction, O3 Mining, through its wholly-owned subsidiary, O3 Markets Inc. ("O3 Markets"), beneficially owned or controlled 7,661,500 Orebodies Shares, representing approximately 12.0% of the issued and outstanding Orebodies Shares. After giving effect to the Hemlo Transaction, and the acquisition of the Consideration Shares, O3 Mining, through O3 Markets, now beneficially owns or controls 10,211,500 Orebodies Shares, representing approximately 15.4% of the issued and outstanding Orebodies Shares (on the basis of there being 66,218,450 Orebodies Shares issued and outstanding as of the date hereof).