Big Ridge Gold Announces Sale of Destiny Option to Clarity Gold
Toronto, November 30, 2020 - Big Ridge Gold Corp. (TSXV: BRAU) ("Big Ridge" or the "Company") is pleased to announce it has entered into a binding option agreement (the "option agreement") with Clarity Gold Corp. ("Clarity") for the option of its 100% owned Destiny gold property, located in Despinassay Township, 75km Northeast of Val d'Or, Quebec.
Terms of the Transaction
To earn a 100% interest in the Destiny gold property, Clarity must make the following cash payments and share issuances to Big Ridge:
- $50,000 in cash within 5 days of signing a Letter of Intent with respect to this transaction (already paid);
- $450,000 in cash and $1,000,000 in shares within 60 days of closing the option agreement (the "closing");
- $750,000 in cash and $1,000,000 in shares within 12 months of closing;
- $750,000 in cash and $1,500,000 in shares within 24 months of closing, at which point Clarity will earn 49% in the Destiny property, and;
- $1,000,000 in cash and $2,000,000 in shares within 36 months of closing;
- Upon earning 100% interest in the Destiny gold property, Big Ridge will retain a 1% precious metals NSR on the property, subject to a $1.0 million buy-back right in favour of Clarity.
"We are pleased to be announcing this agreement with Clarity on our Destiny gold property," said Mike Bandrowski, President & CEO of Big Ridge. "We are firm believers in the potential for significant resource growth at Destiny. Clarity's Tier 1 advisory team lead by CEO, James Rogers is well qualified to champion this project, Clarity has an impressive track record of discovery and the financial strength to move the project forward."
The divestiture of Destiny and our recently signed exploration agreement with the Bunibonibee Cree Nation will allow us to focus our attention towards our wholly owned Oxford gold project, located in Manitoba. Oxford contains many high priority targets that will be the focus of near-term exploration work.
Closing is subject to a number of conditions, including receipt by the Company of TSX Venture Exchange approval.
There can be no assurance that the Closing will be completed in a timely fashion, or at all, and the Company will provide a further update on timing in due course. All shares of Clarity to be issued to the Company under the option agreement will be subject to a four-month statutory hold period.
About Big Ridge Gold Corp.
Big Ridge Gold Corp. is an exploration and development company with a portfolio of 100% owned Canadian gold properties. The Company is focused on the highly prospective Oxford Gold Project located in Manitoba, it is active in the prolific Abitibi greenstone belt in Quebec on the Destiny gold property and is exploring in the Beardmore-Geraldton gold belt in Ontario.
For more details regarding the Company's projects, please visit our website at www.bigridgegold.com.
ON BEHALF OF THE BOARD,
Mike Bandrowski,
President & CEO
Neither the 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.
For further information contact:
Mike Bandrowski,
President & CEO
Suite 615-800 W. Pender Street
Vancouver, BC, V6C 2V6
Tel: 416-540-5480
Email: Mike@bigridgegold.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/69127