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New Break increases Moray position near Matachewan's Young-Davidson

Jul 17, 2023

New Break Resources Ltd. has further increased the land position at its Moray property to 8,311 hectares from 5,354 hectares. Moray is located approximately 49 km south of Timmins and 32 km northwest of the Young-Davidson gold mine, operated by Alamos Gold Inc. Since March 1, 2023, New Break has increased its property position at Moray by 6,455 hectares through staking and acquisitions.

The new claims cover approximately 2,957 hectares located in Zavitz Township, Ontario (dark green area), including 1,446 hectares which were acquired by New Break at a cost of $3,350 from the Ontario Ministry of Mines when the ground became open for staking. The additional 1,511 hectares are being acquired pursuant to a mining claim acquisition agreement (the "Agreement") entered into by New Break with two arm's length individuals (the "Vendors"). 

Under the terms of the Agreement, the Vendors will receive a cash payment of $10,000 and will be issued 300,000 common shares of New Break (the "Consideration Shares") at closing in exchange for 100% ownership in the Property, which shall also be royalty free. The Consideration Shares are subject to an escrow arrangement from which 50% of the Consideration Shares will be released four months and one day following closing and 50% six (6) months from closing. All cash payments and issuances of Consideration Shares will be split 50% and 50% corresponding to the respective ownership percentages of the Vendors. The acquisition of the Property is subject to the approval of the Canadian Securities Exchange.

The newly acquired ground is not subject to any area of influence requirement and is automatically added to ground covered by the October 22, 2021, Memorandum of Understanding between New Break and the Matachewan and Mattagami First Nations. 

In addition, the Vendors have agreed to invest a minimum of $20,000 in the next hard dollar private placement conducted by New Break. 

Michael Farrant, President and CEO of New Break stated, "We are extremely happy to have been able to expand our property position at Moray relatively inexpensively and entirely royalty free. In just over four months we have expanded Moray by 6,455 hectares, which gives us greater opportunity to evaluate Moray from a camp perspective, building on the exploration advances already made by our technical team. We have already begun identifying new targets and mineralization on the ground acquired in May 2023." Mr. Farrant also noted, "Our work at Moray in no way diminishes our excitement for our Nunavut properties, in particular the Sundog gold project and Esker claim. However, with a much shorter exploration field season in Nunavut, Moray gives us an excellent project in the prolific Abitibi region of Ontario that hosts both gold and base metal potential, which can be explored all year round. We remain focused on advancing our entire portfolio of projects and believe this is the best strategy for creating value for our shareholders."

2023-2024 Ontario Junior Exploration Program ("OJEP")

New Break is also extremely pleased to announce that the Company received notification on July 13, 2023, from the Ontario Ministry of Mines that New Break has been accepted to participate in the 2023-2024 OJEP, which will apply to certain eligible expenses incurred from April 1, 2023 to February 15, 2024. The Company expects to confirm the details of its participation in the coming days.

Tags: Northern Ontario / Deals & Financial / Gold / All Articles