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Galactic Gold Corp. (TSXV: GGAU) ("Galactic" or the "Company") is pleased to announce the it has entered into an option agreement to acquire a 100% ("Agreement") undivided interest in 74 contiguous, mining claims, the Sturgeon Bridge Claims (37 units), the March Mineral Claims (8 Units), Kenogamisis Prospect Claims (2 Units) and the Mag Extension (27 units) also known as the "Sturgeon Bridge Properties" in the Geraldton township in the province of Ontario, representing a total area of approximately 11,600 hectares.
Transaction details
Galactic has the exclusive right and option to earn 100% interest in the Sturgeon Bridge Properties by providing the optionors with consideration in the form of cash and common shares in the capital of Galactic, as set forth below:
| Date for Completion | Cash | Number of Shares |
| On signing of this Agreement | $20,000 | 568,750 |
| First year anniversary | $40,000 | 568,750 |
| Second year anniversary | $60,000 | 568,750 |
| Third year anniversary | $80,000 | 568,750 |
| TOTAL | $200,000 | 2,275,000 |
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Pursuant to the Agreement, the optionors will transfer the properties to the Company upon payment of the final cash consideration payable on the third anniversary of the Agreement and will retain a 2% NSR on the Sturgeon Bridge Properties. Galactic shall have the exclusive right and option to purchase 1% of the NSR for $1,000,000 at any time after earning a 100% interest and retain a first right of refusal on the remaining 1% NSR. The optionors are arms length to the Company and the transaction remains subject to the approval of the TSX Venture Exchange, and standard closing conditions for transactions of this nature.
Sturgeon Bridge Property Description
Gold mineralization at the Sturgeon Bridge Properties (MDI42E11NW00003) was first discovered in 1934 and a 5 hole drill program consisting of 395m was completed in 1955 that intersected light to heavy pyrite and chalcopyrite mineralization in a zone of sheared greenstone with numerous quartz stringers (MDI42E11NW00003). Kodiak Exploration Ltd. completed 2,565m in 9 diamond drillholes on the property in 2008. Assay highlights from the 2008 program are taken from the Kodiak Exploration diamond drill report (File ID: 20000004143) and include:
- 2.53 g/t Au over 1.6 m in SB08-03;
- 1.75 g/t Au and 9.56 g/t Ag over 3.8 m in SB08-05;
- 66.7 g/t Au over 0.3 m in SB08-13; and
- 1.19 g/t Au over 4.3 m in SB08-14.
MDI42E11NW00003 describes the main zone at Sturgeon Bridge as striking approximately 240 degrees with a variable width from 6 to 23 m along a 490 m strike length. At one point along a 48 m north-trending trench, visible gold was found within brecciated portions of the quartz veins (MDI42E11NW00003).
Although gold is the primary commodity, polymetallic quartz veining occurs with the structure and patches of chalcopyrite were observed in quartz-breccia zones that contain 1045 ppm Zn in a gossan zone in the eastern exposure (Mason and White, 1992). Surface grab samples returned 1211 ppm Cu and 43 ppm Zn from 91-MFC-7 and 240 ppm Cu and 1045 ppm Zn from 91-MFC-9 (MDI42E11NW00003).
Prospecting by Onchulenko and Gehrels in 2018 returned 6.5 g/t Au and the mineralized zone has been traced for over 2 km strike length on the property (MDI42E11NW00003).
Properties Located On Proven Mineralized Orogenic Gold Structures
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Qualified person
Jason Arnold, P.Geo., President of DCX Geological Consulting and an independent Qualified Person as such term is defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the geological information reported in this news release. The Qualified Person has not completed sufficient work to verify the historical sampling on the property and historical results reported may not be representative of expected results.
About Galactic Gold Corp.
Galactic Gold Corp. is a resource development company focused on unlocking the full potential of its 100%-owned Hardrock West Property, located in the top tier mining jurisdiction of Ontario. Galactic Gold is positioned between Equinox Gold Greenstone Mine and Equinox's Brookbank Deposit along what Laurentian University in its Metal Earth Research has identified super structures across the Galactic Gold Property underscoring the Project's strong value-creation potential.
For further information, please contact:
Kenneth Berry, ken@touchstonecapital.ca
or
Frank Lagiglia, frank@galacticgoldcorp.com
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 release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release may contain forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's current plans and business objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: assumptions regarding future metals prices, debt and equity financing market conditions, receipt of regulatory approvals, and other factors. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on its behalf. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward- looking statement, whether as a result of new information, future events or results or otherwise. More particularly, this news release contains statements concerning the anticipated Private Placement. Accordingly, there is a risk that the Private Placement will not be completely sold, or the Private Placement will be completed within the anticipated time or at all. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, undue reliance should not be put on such statements due to the inherent uncertainty therein.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/292689
