Solstice Closes Acquisition of Jackpine and the Nights Sky Option in Atikokan
VANCOUVER, British Columbia, Jan. 14, 2022 (GLOBE NEWSWIRE) -- Solstice Gold Corp. (TSXV: SGC) (“Solstice”, “we”, “our” or the “Company”) is pleased to announce
that it has received final approval from the TSX Venture Exchange for the acquisition of: (i) a 50% interest in the Jackpine Project (“Jackpine”) pursuant to a Property Sale
Agreement dated December 10, 2021 (the “Property Purchase Agreement”) with Gravel Ridge Resources Ltd. (“Gravel”) and 1544230 Ontario Inc.
(“1544230” and together with Gravel, the “Sellers”); and (ii) an option (“Option”) to acquire a 100% interest in the Nights Sky Project
(“Nights Sky”) pursuant to an Option Agreement dated December 10, 2021 (the “Option Agreement”) with 1544230 (the “Optionor”) (see news release
dated December 16, 2021).
Pursuant to the Property Purchase Agreement, Solstice issued a total of 400,000 common shares (“Common Shares”) in the capital of Solstice to the Sellers (collectively, the “Jackpine Payment Shares”) and has granted a 1.25% net smelter return (“NSR”) royalty on the Jackpine in favour of the Sellers, 0.5% of which may be repurchased by Solstice for $500,000 at any time prior to the commencement of commercial production on the Jackpine. Solstice now owns a 100% interest in Jackpine.
Pursuant to the Option Agreement, Solstice paid the Optionor $12,000 in cash and issued 200,000 Common Shares to the Optionor (the “Option Payment Shares” and collectively with the Jackpine Payment Shares, the “Payment Shares”). Subject to making the remaining cash payments under the Option Agreement, upon exercise of the Option, Nights Sky will be subject to a 1.5% NSR royalty in favour of the Optionor, 0.5% of which may be repurchased by Solstice for $500,000 any time after the exercise of the Option and prior to the commencement of commercial production.
The Payment Shares are subject to a four-month statutory hold period from the date of issuance in accordance with applicable Canadian securities legislation.
About Solstice Gold Corp.
Solstice is a gold-focused exploration company with three, district-scale projects in established mining regions of Canada. Our 174 km2 Red Lake land position is located on the northern extensions of the prolific Red Lake Gold Camp in Ontario. RLX is approximately 45km from the Red Lake Mine Complex owned by Evolution Mining. The Company is funded for phase one drilling in Red Lake. Our newly formed 225km2 Atikokan Gold Project is approximately 23km from the Hammond Reef Gold Project owned by Agnico Eagle Mines Limited and is funded for a robust field program in 2022. Our district scale Qaiqtuq Gold Project covers 886 km2 with certain other rights covering an adjacent 683 km2, hosts a 10 km2 gold boulder field and is fully permitted with multiple drill-ready targets. Qaiqtuq is located in Nunavut, Canada, only 26 km from Rankin Inlet and approximately 7 km from the Meliadine gold deposits owned by Agnico Eagle Mines Limited.