The TSX Venture Exchange has accepted for filing a mineral property option agreement dated for reference Nov. 29, 2018, between Crystal Lake Mining Corp. and Romios Gold Resources Inc. The option agreement was approved on February 22, 2019. Under the agreement, Romios has agreed to grant Crystal Lake an option to acquire up to a 100-per-cent interest in the Newmont Lake project located in British Columbia.
In order to exercise the option Crystal Lake must:
- Complete $8-million in exploration expenditures on the Newmont Lake project over the next three years ($3-million in the first year and $2.5-million in each the second and third years);
- Pay $2-million in cash to Romios as follows: $250,000 on signing of agreement (paid) and a further $250,000 payable on each of 90 days, 180 days and 270 days following exchange approval of the transaction, with a final $1-million payment upon Crystal Lake earning its 100-per-cent interest in the Newmont Lake project;
- Issue a total of 12 million common shares of Crystal Lake to Romios over a three-year period as to four million each year, with the first four million shares to be issued following exchange approval of the transaction. The Company is issuing the first tranche of 4,000,000 shares to Romios having a legend of a six month hold period on the first 1,000,000 shares and a twelve month hold period on the balance of 3,000,000 shares.
Romios will retain a 2-per-cent net smelter return royalty on the Newmont Lake project, or on any after acquired claims within a five-kilometre radius of the current boundary of the project, which may be reduced at any time to a 1-per-cent NSR on the payment of $2-million by Crystal Lake per 0.5 per cent of the NSR.
Crystal Lake will issue two million shares to Romios in the event that a National Instrument 43-101 technical report on the Newmont Lake project contains a resource estimate which exceeds one million ounces of gold equivalent resources (being the sum of indicated and inferred). Crystal Lake will issue an additional one million shares to Romios for each full one million additional ounces of gold equivalent resources so documented in a National Instrument 43-101 technical report on the Newmont Lake project.
About the Company
Crystal Lake Mining Corporation is a mineral exploration/Development company focused on creating value through the exploration and development of its British Columbia and Ontario mineral properties.
On behalf of The Board of Directors of Crystal Lake Mining Corporation.
Richard Savage CEO/President
This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Crystal Lake Mining Corporation which may cause actual results, performance or achievements of Crystal Lake Mining Corporation on to be materially different from the results, performance or expectation implied by these forward looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.