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Xplore Announces Earn-In Option Agreement on Perrigo Lake Property, Red Lake

Aug 23, 2021

Xplore Resources Corp. has entered into an Option Agreement with 1544230 Ontario Inc. and Gravel Ridge Resources Inc. to earn a 100% ownership interest in the 166 contiguous cell claims Perrigo Lake Property in McNaughton Township, Red Lake Mining Division.

Summary of the terms of the proposed transaction:

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 Venture Exchange (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 120,000 shares of XPLR within five (5) days of TSX-V approval of the Agreement; and

  • Making a cash payment of C$20,000 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$28,000 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 1.75% net smelter return royalty ("NSR") on all future metal production. The Company may purchase 0.05% of the NSR for C$600,000. The remaining 1.25% NSR is subject to a pre-existing agreement with and arms length third party.

The transaction and the issuance of the shares contemplated by the Agreement are subject to the acceptance of the TSX.V. Any securities issued will be subject to applicable statutory hold periods for a period of four months from the date of issuance.

Wes Hanson, P.Geo., President and CEO of Xplore, notes, "Perrigo Lake provides a third property in the Red Lake Mining Division, one of the premier locations in Canada for the discovery of gold mineralization. Ontario Geological Survey maps suggest that the property is dominated by felsic to mafic volcanic and volcanoclastic rocks and metasedimentary rocks with the potential to host gold mineralization. Gold was actively mined at the Uchi mine, 10 kms to the southwest, from 1939 to 1943, with over 100,000 ounces of historical production. Perrigo has not been systematically explored and we look forward to initiating exploration at our latest project. Airborne magnetic surveys at Pringle and Upper Red Lake are scheduled to commence shortly and we expect that we will be able to include Perrigo Lake in the scope of work. Our plan is to complete reconnaissance mapping and sampling of all three Red Lake properties in the fall."

Image removed.

Figure 1.0 - Location Map - Perrigo Lake Property Claim Group

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