VANCOUVER, April 17, 2020 /CNW/ - Dixie Gold Inc.
(TSX VENTURE: DG)(FWB: 2YCA) ("Dixie
Gold" or the "Corporation) is pleased to announce
that it has entered into amending agreements (the "Amending
Agreements") with Azincourt Energy Corp. ("Azincourt") and
Skyharbour Resources Ltd. ("Skyharbour") concerning the East
Preston Uranium Project. Under the Amending Agreements, Azincourt
shall be granted a period extension to March
31, 2021 (the "Extension") to: (1) deliver the final
cash payment and, (2) complete a modest amount of exploration work
remaining in connection with respect to Azincourt's earn-in of a
70% interest in certain mineral claims constituting the East
Preston Uranium Project (the "Project").
In consideration for the Extension, Azincourt has agreed to
issue 2,500,000 common shares (the "Consideration Shares") of its
equity, at a deemed price of $0.05
per share, to Dixie Gold (the
"Issuance"). Completion of the Issuance of the Consideration Shares
remains subject to the approval of the TSX Venture Exchange.
Following the Issuance, the Consideration Shares will be subject to
a four-month and one-day statutory hold period in accordance with
applicable securities laws.
Under the terms of the Extension, Dixie
Gold executed agreements necessary to extend the deadline
for the remaining obligations to complete the earn-in of a 70%
interest in the Project by Azincourt from Dixie Gold and Skyharbour, which, as noted
above, include incurring a small portion of the remaining
exploration expenditures and delivery of a final cash payment, of
which the net amount due to Dixie
Gold is $200,000. Following
satisfaction of these obligations, Azincourt Energy would hold a
70% interest in the East Preston Uranium Project.
The Company's Preston Uranium Project (which is under separate
option agreement with Orano Canada Inc.) and the East Preston
Uranium Project are both located in Saskatchewan's Western Athabasca Basin. For further
information, please consult:
https://www.dixiegold.ca/preston.
About Dixie Gold Inc.
Dixie Gold Inc. (TSXV: DG) is a publicly-traded exploration
company involved in a diverse portfolio of exploration projects in
Canada. For more information,
please visit www.dixiegold.ca.
Signed,
Ryan Kalt
Chief Executive Officer
Dixie Gold Inc.
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements address future events and conditions and
therefore, involve inherent risks and uncertainties. Actual results
may differ materially from those currently expected or forecast in
such statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Dixie Gold Inc.