Symbol: TSX-V: CLM
VANCOUVER, Sept. 24, 2018 /CNW/ - Crystal Lake Mining
Corporation (the "Company" or "Crystal Lake Mining") is
pleased to announce that it has signed a Letter Agreement with
Romios Gold Resources Inc. for an option to acquire a 100% interest
in the 436 sq. km Newmont Lake Project in the prolific Golden
Triangle, immediately south of Galore Creek (Newmont and Teck) and
north-northwest of key projects in the highly active Eskay Camp.
Newmont Lake Project Highlights:
- Vastly under-explored district-scale land package with
multi-commodity potential in the heart of the Eskay Rift;
- 22 documented mineral occurrences adjacent to the high-grade
Northwest gold zone (historic resource) which is open for
expansion;
- Immediate (October) planned drill program at Burgundy Ridge
target (never previously drilled) at southwestern end of project
where a continually receding snowfield has exposed broad areas of
copper-gold-silver mineralization;
- Major new infrastructure improvements in the region (roads,
bridges, power, AltaGas camp) have enhanced access and will
accelerate the discovery process.
Richard Savage, Crystal Lake President and CEO, commented: "To
gain a foothold in such a prominent mining district with an
exceptional land package featuring both scale and untapped
exploration potential will drive value for CLM shareholders.
With Newmont Lake and our Nicobat Project in northwest Ontario, we're on track for a very exciting
finish to 2018."
Dr. Peter Lightfoot, Crystal Lake
Technical Adviser, added: "The combination of mapping programs by
the B.C. Geological Survey and operators going back to the 1980's,
coupled with new airborne electromagnetic methods, places the
Newmont Lake Project in a whole new light. It is strategically
positioned to achieve a place in the world's next great mining
camp."
The Deal
To acquire a 100% interest in the 436 sq. km Newmont Lake
Project, Crystal Lake must
complete the following:
1)
|
$8 million in
exploration expenditures at Newmont Lake over the next three years
($3 million in Year 1 and $2.5 million in each of Years 2 and
3);
|
2)
|
$2 million in cash
option payments to Romios as follows: $250,000 on signing of Letter
Agreement (paid) and a further $250,000 payable on each of 90 days,
180 days and 270 days following regulatory approval of transaction;
a final $1 million payment upon Crystal Lake earning its 100%
interest;
|
3)
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A total of 12 million
shares of Crystal Lake will be distributed to Romios over a
three-year period – 4 million each year, with the first 4 million
shares issued following regulatory approval of the transaction
(subject to normal hold period and a "lock up"
provision).
|
Crystal Lake will be the
operator during the earn-in period, and Romios will have the right
to appoint one director to the CLM board.
Romios will retain a 2% Net Smelter Returns Royalty (NSR) on the
Newmont Lake Project, or on any after-acquired claims within a 5 km
radius of the current boundary of the project, which may be reduced
at any time to a 1% NSR on the payment of $2
million per 0.5% NSR.
The Letter Agreement is subject to TSX Venture Exchange approval
and the execution of a Definitive Agreement within 45 days.
Dr. Lightfoot concluded, "The planned upcoming drill program at
Burgundy Ridge should further underscore the compelling potential
of this project. We look forward to extensive data compilation and
reinterpretation over the coming months, and quickly advancing this
exciting project."
Qualified Person
The technical information in this news release has been reviewed
and approved by Dr. Peter C.
Lightfoot, P.Geo., a Qualified Person responsible for the
scientific and technical information in this news release under
National Instrument 43-101 standards.
About Crystal Lake Mining
Crystal Lake Mining is a Canadian-based junior exploration
company focused on building shareholder value through the discovery
of new magmatic nickel sulfide deposits and other deposit types
using technical excellence in exploration target development.
On behalf of The Board of Directors of Crystal
Lake Mining Corporation,
Richard Savage, President
& CEO
This news release may contain certain "forward looking
statements". Forward-looking statements involve known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Any forward-looking statement speaks only as of the
date of this news release and, except as may be required by
applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking statement, whether as a
result of new information, future events or results or
otherwise.
Neither 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 Crystal Lake Mining Corporation