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O3 Mining Consolidates Marban Project with acquisition of East-West Property from Emgold Mining

Mar 16, 2022

O3 Mining Inc. has signed a binding letter agreement with Emgold Mining Corporation to acquire 100 per cent of the rights, title and interests in Emgold's East-West Property. The East-West Property is located in the Val-d'Or Mining Camp in Québec, adjacent to and east of the corporation's Marban Property, and consists of seven mining claims covering an area of 184 hectares, as shown in Figure 1.

Pursuant to the Letter Agreement, O3 Mining has agreed to acquire the East-West Property at closing in exchange for: (i) cash consideration of C$750,000, (ii) 325,000 common shares in the capital of the Corporation; and (iii) the grant of a 1% net smelter returns royalty over the East-West Property in favour of Emgold, which will be subject to a buy-back right in favour of O3 Mining ("Buy-Back Right"). The Buy-Back Right may be exercised by the Corporation until the fifth anniversary from the closing date for a cash payment of C$500,000 until the third anniversary from the closing date and C$1,000,000 until the fifth anniversary from the closing date.

The transaction is subject to the satisfactory completion by O3 Mining of its due diligence review of Emgold and the East-West Property, the receipt of any necessary regulatory (including stock exchange) approvals and the execution of the definitive agreements in respect of the transaction, which is expected to occur no later than March 31, 2022.

José Vizquerra Benavides, President and CEO of the Corporation commented: "We are excited about the acquisition of the East-West Property as it presented the opportunity to secure prospective ground near the Marban Engineering project and consolidate O3 Mining's position in the district. Additionally, the boundary of the property is 200 metres from the Marban PEA pit edge. We look forward to finalizing the agreement and amplifying our brownfield exploration program as it holds the potential for new discoveries to expand the gold mineralization around Marban Engineering and to create significant value for our shareholders." 

The East-West property covers the auriferous Marbenite structural corridor over a 1.6 km strike length. It contains the Little Long Lac mineral occurrence where 25,000 tonnes at 8.0 g/t Au were extracted during the 1960's and the East zone where drilling intersected 3.6 g/t Au over 16.1 m and 5,495 g/t Au over 2.25 m, among others. The exploration potential is considered promising as the structure is untested below 250 metres.

Figure 1: Marban Project Surface Map

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"The historical data reported here is believed reliable and accurate and compliant with industry standards. The qualified person has reviewed all reports from the area and has reported on historical results and data collected, compiled and reported on. O3 Mining has not verified the data and is planning an initial exploration program."

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