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Probe Metals Expands its Detour Quebec Package with agreement with Midland Exploration

Jul 10, 2020

Probe Metals Inc. has entered into a binding option agreement with Midland Exploration Inc., whereby Probe may earn up to a 65% interest in the La Peltrie gold property. The property is comprised of 435 claims representing 240 square kilometres and is contiguous with Probe’s Detour Quebec gold project. The consolidated package now stands at 1,169 claims representing 636 square kilometers along this prolific and highly prospective gold belt.

Dr. David Palmer, President and Chief Executive Officer of Probe, states: "We are very pleased to be working with Midland on the Detour Trend.  Midland has put together a very strategic and prospective portfolio of claims, and these blocks tie in very well with our current exploration model and our own claims in the area. The consolidated property now represents the second largest along the Detour Quebec gold trend and specifically covers over 70 kilometres of strike length along the Lower Detour trend, which hosts Kirkland Lake’s high grade gold zones. Historically there has been a lack of exploration in this tremendously prospective area and we see potential for new high-grade discoveries along the entire length of the property package. Probe has an exploration team dedicated to exploring our Detour Quebec project and these new claims will bring additional opportunities and fit very well into the regional exploration programs currently underway."

The La Peltrie Option is consistent with Probe’s business model to acquire and explore prospective projects in proven Quebec gold districts. With the option on La Peltrie property, the Company significantly consolidates its district-scale land position along the Detour Gold Trend. This addition unites some isolated claims blocks and gives Probe the opportunity to explore the prospective Lower Detour Gold Trend (“LGDT”) over 70 kilometres long and covering 636 square kilometres. In 2016, Probe discovered a new zone grading 17.5 g/t Au over 1 metre on its 100% owned Detour Quebec Project along the LGDT and this agreement between the two companies sets the stage for additional high-grade discoveries. The La Peltrie property is located next to the south of our Detour Quebec main claims block and it is also approximately 15 kilometres southeast of Zone 58N, a high-grade gold zone along the LGDT, south of the Detour Gold mine held by Kirkland Gold Corp. Probe intends to aggressively explore favourable target areas on this property starting this summer.

Figure 1 Claims Map – Detour Quebec Probe


Terms of the Agreement

Probe can acquire an undivided 50% interest (the “First Option”) in the La Peltrie Property by incurring aggregate expenditures (the “Aggregate Expenditures”) of $3,500,000 as follows:

  • An aggregate amount of $500,000 on or before July 31, 2021;
  • an aggregate amount of at least $1,200,000 on or before July 31, 2022;
  • an aggregate amount of at least $2,400,000 on or before July 31, 2023; and
  • an aggregate amount of at least $3,500,000 on or before July 31, 2024.

In addition, Probe shall make cash or share payments to Midland in the aggregate amount of $400,000 as follows:

  • $50,000 on closing;
  • $55,000 on or before July 31, 2021;
  • $70,000 on or before July 31, 2022;
  • $100,000 on or before July 31, 2023; and
  • $125,000 on or before July 31, 2024.

Pursuant to the Agreement, at closing, Probe will issue 37,879 common shares to Midland for the initial payment for a total value of $50,000 based on 5-day volume weighted average price (VWAP) of $1.32 per share on the TSX Venture Exchange. The transaction is subject to receipt of approval of the TSX Venture Exchange.

Upon exercise of the First Option, Probe may, at its sole discretion, increase its undivided interest in the La Peltrie Property to 65% (the “Second Option”), by incurring additional expenditures and/or cash payments, at the sole election of Probe, of $5,000,000 within a period two years from the date of exercise of the First Option.

Probe will be the operator of exploration programs on the property.


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