Great Quest Fertilizer Expands Portfolio with Strategic Acquisition in Namibia's Damara Gold and Lithium Projects - Seite 2

The highest historical assayed rock chip samples at K17 graded 21 g/t gold, 38 g/t silver and 16.25% copper. Visible gold and copper mineralization has been encountered over a circular surface area of 6km in diameter.

Omatjete Gold and Lithium

The 93,105-hectare Omatjete Gold/Lithium Project, located approximately 80 km southeast of the Khorixas Project, is strategically positioned within the Northern Central Zone of the Damara Orogenic Belt. This project, intersected by two regional shear zones, holds potential for gold and lithium deposits and aligns with Great Quest's commitment to advancing projects with substantial upside.

Outjo Gold Project

The 45,914-hectare Outjo Gold Project, situated approximately 80 km east of the Khorixas Project, presents a greenfields opportunity within the Damara Orogenic Belt. With no historical work done on the Kuiseb formation, this project aligns with Great Quest's exploration strategy to uncover untapped potential in gold-rich regions.

Terms of the Transaction

Pursuant to the Purchase Agreement, as consideration for an initial 25% equity interest in Belmont and a corresponding 25% ownership interest in the Projects (the “Initial Acquisition”), Great Quest has agreed to:

1. Pay the Namibian dollar equivalent of USD$60,000 in cash to the vendor at the time of closing of the Transaction; and
2. Fund the Namibian dollar equivalent of USD$1,400,000 for exploration expenditures on the Projects within 24 months of closing of the Transaction.

The Company expects to close the Initial Acquisition in early 2024. Following, the closing of the Initial Acquisition, Great Quest can acquire an additional 26% ownership interest in Belmont by funding the Namibian dollar equivalent of USD$1,400,000 for exploration expenditures on the Projects.

Pursuant to the Assignment Agreement, Great Quest shall pay the following consideration to Sulliden: (i) USD$50,000 in cash with 90 days of executing the Assignment Agreement; (ii) USD$50,000 in cash with 180 days of executing the Assignment Agreement; (iii) reimbursement of Sulliden’s costs of USD$80,000; and (iv) issue 5 million Great Quest common shares. There are no finder’s fees payable.

The Transaction is subject to customary closing conditions, including the approval of the TSX Venture Exchange. The Company’s shares will be halted and will remain halted pending receipt and review of acceptable documentation regarding the Fundamental Acquisition pursuant to Section 5.6(d) of Exchange Policy 5.3