May 19th, 2021: Montréal, Québec – Bullion Gold Resources Corp. (TSX-V: BGD) (“Bullion Gold” or the “Corporation”) is pleased to announce that it has entered into an Option Agreement (the “Agreement”) with Mosaic Minerals Corporation (“Mosaic”) to sell up to 100% of the Lichen Property (the “Property” or “The Project”) located in the Chapais-Chibougamau area, in northern Quebec. The property, made up of 178 cells with a dimension of approximately 9,968 hectares, is accessible year-round by a set of forest roads maintained by the various forestry companies working in this sector.
Terms of Agreement
For and in consideration of the issuance of the Consideration Shares and incurring the Expenditures Bullion hereby grants to Mosaic the exclusive right and option to earn up to an 100% interest in the Lichen Property, such Consideration Shares to be issued and expenditures made as follows:
(a) Issue to Bullion 3,000,000 shares of Mosaic, the Consideration Shares so soon as is practicable but not longer than seven (7) days following the execution of this Option, and the filing with and the receipt of required approvals to this acquisition by the Canadian Securities Exchange.
(b) Mosaic incurring One Hundred Thousand ($100,000) dollars of Expenditures on or before May 31, 2022; and
(c) Mosaic incurring Three Hundred Fifty Thousand ($350,000) dollars of Expenditures on or before May 31, 2024. Exploration’s expenditures may be accelerated at any time by Mosaic.
Royalty
If The Project is brought into commercial production, then Bullion will receive a total of 2% NSR royalty on the net smelter income. Mosaic retains the right to buy back 50% of the 2% NSR at any time for a consideration of $500,000 CDN. Mosaic also obtains a first right of refusal on the remaining 1% NSR.
Mr. Gilles Laverdière. P.Geo, director and qualified person under NI 43-101 has read and approved this press release.
Other Information
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Forward-Looking Statements: This press release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. The forward-looking statements are based on certain key expectations and assumptions made by the Corporation. Although Bullion Gold believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Bullion Gold can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in the Corporation’s management discussion and analysis of the financial condition and results of operations for the year ended December 31, 2019 and the third quarter ended September 30, 2020, which are available on the Corporation’s profile at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Warrior Gold undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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