NioBay Sells Property and Provides James Bay Project Update

MONTREAL, Sept. 29, 2020 (GLOBE NEWSWIRE) -- NioBay Metals Inc. (“NioBay” or the “Company”) (TSX-V: NBY) is pleased to announce the sale (the “Transaction”) of its interest in the Des Meloizes Property (the “Property”). The Property is located 7 km east of Amex Exploration’s Perron gold property and is owned by the Company and SOQUEM Inc. (“SOQUEM”), under a joint venture agreement (the “Joint Venture”).

The Transaction

The Transaction is being carried out in accordance with the terms of an arm's-length purchase agreement (the "Purchase Agreement") dated September 21, 2020 among the Company, SOQUEM and Generic Gold Corp. ("Generic Gold"). In exchange of its 47% ownership of the Property, the Company will receive: (i) cash in the amount of $25,000; and (ii) an aggregate of 1,750,000 common shares (the "Consideration Shares") in the capital of Generic Gold.

In exchange for its 53% ownership in the Property, SOQUEM will receive: (i) cash in the amount of $175,000; and (ii) an aggregate of 750,000 Consideration Shares. In addition, SOQUEM will receive a 3% net smelter returns royalty (the "NSR") in respect of the Property, subject to the right and option of Generic Gold to purchase 1% of the NSR for a price equal to $1,000,000.

The completion of the Transaction is subject to certain closing conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the Canadian Securities Exchange and execution of a definitive purchase agreement on terms acceptable to all parties.

The Joint Venture owns other mineral titles located in the province of Québec, including the Clairy, Lac Shortt and L’Espérance properties. The Clairy property is located 120 km north from the Chibougamau mining camp and 40 km south of the former Troilus mine. This property covers an area of 2,818 hectares and its minerals of interest are copper and zinc. The Lake Shortt and L’Espérance properties are located about 135 km south-west from the Chibougamau mining camp and 15 km north-east from the Bachelor Lake concentrator, respectively. The Lac Shortt property covers an area of 4,798 hectares and the L’Espérance property covers an area of 1,978 hectares. The mineral of interest for these properties is gold. The Company is currently evaluating various options for these non-core properties in order to maximize value to the Company’s shareholders.