Crystal Lake finalizes deal to acquire Newmont project

Dec 4, 2018

2018-12-03 16:47 ET – News Release

Mr. Richard Savage reports

CRYSTAL LAKE FINALIZES NEWMONT LAKE PROJECT OPTION AGREEMENT

Crystal Lake Mining Corp. has finalized an agreement with Romios Gold Resources Inc. (refer to Sept. 24, 2018, news release) to acquire a 100-per-cent interest in the 436-square-kilometre Newmont Lake project in the heart of the Golden Triangle, immediately south of Galore Creek (Newmont and Teck) and north-northwest of key projects in Northwest B.C.’s highly active Eskay Camp. The agreement is subject to the approval of the TSX Venture Exchange.

Dr. Peter Lightfoot, Crystal Lake technical adviser, commented: “Our excitement regarding this project has only intensified over the past two months. We’re also eagerly anticipating assay results from a total of six reverse circulation drill holes completed by Crystal Lake during the last half of October at Burgundy Ridge and the Northwest zone gold system. In addition, extensive sampling was carried out by Romios’s crews over parts of the project area during the summer. We look forward to presenting those results and looking ahead to 2019.

“It’s a rare opportunity to be able to advance such a prospective land package in the world’s next great mining camp,” Dr. Lightfoot concluded.

Newmont Lake project highlights:

Vastly underexplored district-scale land package with multicommodity potential in the heart of the Eskay Rift;
22 documented mineral occurrences adjacent to the high-grade Northwest gold zone (historic resource), which is open for expansion;
Major new infrastructure improvements in the region (roads, bridges, power, AltaGas camp) have enhanced access and will accelerate the discovery process.

The deal

To acquire a 100-per-cent interest in the 436 sq km Newmont Lake project, Crystal Lake must complete the following:

$8-million in exploration expenditures at Newmont Lake over the next three years ($3-million in year one and $2.5-million in each of years two and three. A total of $508,914 in expenditures made by Crystal Lake since October, subject to verification, will be credited toward the year one commitment through Sept. 20, 2019);
$2-million in cash option payments to Romios as follows: $250,000 on signing of letter agreement (paid) and a further $250,000 payable on each of 90 days, 180 days and 270 days following regulatory approval of transaction; a final $1-million payment upon Crystal Lake earning its 100-per-cent interest;
A total of 12 million shares of Crystal Lake will be distributed to Romios over a three-year period to four million each year, with the first four million shares issued following regulatory approval of the transaction (subject to normal hold period and a lock-up provision).

Crystal Lake will be the operator during the earn-in period, which it can accelerate at its discretion, and Romios will have the right to appoint one director to the CLM board.

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 per 0.5-per-cent NSR.

Crystal Lake will issue two million bonus shares to Romios in the event one or more National Instrument 43-101 resource estimates collectively exceed one million ounces of gold equivalent resources in the indicated and inferred categories, and an additional one million bonus shares for each full one million additional ounces of gold equivalent resources, which is so documented.

Qualified person

The technical information in this news release has been reviewed and approved by Dr. Lightfoot, PGeo, a qualified person responsible for the scientific and technical information in this news release under National Instrument 43-101 standards.

About Crystal Lake Mining Corp.

Crystal Lake Mining is a Canadian-based junior exploration company focused on building shareholder value through the discovery of new magmatic nickel sulphide deposits and other deposit types using technical excellence in exploration target development.

We seek Safe Harbor.

https://www.crystallakeminingcorp.com/news/