Clarity Metals Announce Early Exercise of Option to Purchase Fecteau Property

VANCOUVER, British Columbia, Feb. 01, 2023 (GLOBE NEWSWIRE) -- Clarity Metals Corp. (“Clarity” or the “Company”) (CSE: CMET, OTC: CLGCF, FSE: 27G0) is pleased to announce that, further to the Company’s news release dated November 22, 2022, it has entered into an early exercise agreement dated January 31, 2023 (the “Exercise Agreement”) pursuant to which the Company has agreed to exercise its option to acquire a 100% interest (the “Option”) in the property known as the Fecteau Property located in the Province of Quebec (the “Property”).

James Rogers, CEO of Clarity, comments, “The Company is excited to have earned 100% of the Fecteau Gold Project which is within an exciting area adjacent to Osisko’s Windfall Lake Project. Clarity is awaiting results from its winter 2022 exploration program on the Fecteau Property.”

The Option was assigned to the Company pursuant to an assignment agreement (the “Assignment Agreement”) dated November 22, 2022 among the Company, Opus One Gold Corp. (“Opus One”) and the two original optionors (the “Optionors”). Opus One assigned all of its rights in and to the Option (the “Assignment”), which was acquired by Opus One pursuant to a property option agreement dated June 20, 2016, as amended September 29, 2020 (the “Original Option Agreement”) between Opus One and the Optionors.

The Company and the Optionors have agreed to amend the terms of the Assignment Agreement and the Original Option Agreement to revise the required payments and expenditures on the Property to exercise the Option. Pursuant to the Exercise Agreement, the Company and the Optionors have agreed that the Option may be exercised and that the Company will exercise the Option in full by: (i) paying the Optionors a cash payment of $35,000 (the “Cash Payment”); and (ii) issuing to the Optionors 185,185 common shares in the capital of the Company (the “Shares”) at deemed price of $0.27 per Share.

In addition, the Company has agreed to enter into a royalty agreement with the Optionors on the Completion Date pursuant to which the Company will grant: (i) a 2.0% net smelter return royalty (the “Full Royalty”) to the Optionors with respect to production of all precious metals from the mineral claims comprising the Property, other than from certain excluded claims (the “Excluded Claims”); and (ii) a 1.0% net smelter return royalty to the Optionors with respect to production of all precious metals from the Excluded Claims. At any time and at the sole discretion of the Company, the Company may reduce the Full Royalty from 2.0% to 1.0% by paying the Optionors or their permitted assign(s) a cash payment of $1,500,000.