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Xplore announces closing of Pringle Lake option agreement

Mar 17, 2021

Xplore Resources Corp. has received conditional approval from the TSX Venture Exchange for the previously announced Pringle Lake transaction with 1544230 Ontario Inc. and Gravel Ridge Resources Inc. (together the "Vendors") to earn a 100% ownership interest in 78 contiguous cells (1,560 Ha) Pringle Lake Property ("Pringle Lake") located in the Red Lake Mining Division.

A Mining Option Agreement (the "Agreement") was signed and announced on March 11, 2021and the TSX.V provided conditional approval of the transaction on March 15, 2021. Final Approval from the TSX.V is conditional on the issuance of a closing press release outlining the Agreement.

Terms of the Agreement:

Under the terms of the Agreement, Xplore will acquire a 100% ownership interest in Pringle Lake by completing the following:

  • The Company obtaining all necessary approvals from the TSX.V; and

  • Making a cash payment of C$18,000 to the Vendor on signing of the Agreement (completed); and

  • Issuing to the Vendors 90,000 shares of XPLR within five (5) days of TSX.V approval of the Agreement (the "Closing Date"); and

  • Making a cash payment of C$24,000 and issuing 120,000 shares of XPLR on or before the 12-month anniversary of the Closing Date; and

  • Making a cash payment of C$30,000 on or before the 24-month anniversary of the Closing Date; and

  • Making a final cash payment to the Vendors of C$30,000 on or before the 36-month anniversary of the Closing Date.

On completion of the above noted cash payments and share issuances, Xplore will have earned a 100% interest in the Pringle Lake Property and the Vendors would retain a 1.5% net smelter return royalty ("NSR") on all future metal production. The Company may purchase one half of the NSR for C$600,000.

The issued securities shall be subject to the applicable statutory hold period of four months from the date of issuance.

Wes Hanson, President and CEO of Xplore, stated, "The Red Lake Mining District is an established mining camp with over 25 million ounces of historical gold production. Recent, significant discoveries in the district clearly demonstrate that this region continues to offer tremendous discovery potential. The Pringle Lake property is interpreted to lie along a significant, deep seated, structural break. Similar structural breaks occur proximal to both the historic, high grade mines at Red Lake and the new discoveries currently being aggressively advanced in the camp. Pringle Lake and our recently acquired Upper Red Lake Project give us two exploration properties in this exciting exploration district. The Company plans to begin active exploration of both properties during the upcoming summer field season."

About the Pringle Lake Gold Project

The Pringle Lake Gold Project is located approximately 50 kms north of Red Lake ON., consists of 78 contiguous cells covering 1,560 Ha along what is interpreted to be a deep seated, N-S trending structural break extending north from Red Lake. Similar deep seated structural breaks have been identified proximal to the historical mines in Red Lake as well as near recent new gold discoveries in the district. Data in the Ontario Geological Survey archives suggests that favourable host rocks are present within the property claim package, but modern exploration is extremely limited to date.

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