VANCOUVER, BC, Dec. 17, 2020 /CNW/ -- St. James Gold
Corp. (TSX-V: LORD) (OTC: LRDJF) (the "Company") is
pleased to announce that subject to approval of the TSX Venture
Exchange, the Company has entered into an option agreement (the
"Option Agreement") with Herb M.
Froude, wherein the Company has been granted the exclusive
right and option to acquire a 100% interest in 29 claims covering
1,791 acres in the Gander Gold District in North Central
Newfoundland Island (the "Grub Line Claims").
About the Grub Line Property:
The Grub Line Claims are located in the north central part of
Newfoundland within a new prolific
gold district, the property represents 1,791 acres adjacent to New
Found Gold Corp.'s Queensway North project and where several other
companies are making new high-grade gold discoveries.
The Property is sandwiched and structurally bound between the
Joe Bates Pond (JBP) fault just to the west currently being worked
by New Found Gold's Queensway's project, and the Grub Line fault.
Both these faults are major continental deep seated plate faults
that run through Newfoundland with
a prominent sequence of felsic pyroclastic rocks trending
northeasterly and in contact with mafic volcanic rocks the main
geological components. The gold prospects with the Queensway North
project and surroundings are typical of greenstone belts around the
world but have been relatively underexplored. The two major
fault lineaments interpreted to be critical in controlling the
extensive gold geochemistry found in till samples and in bedrock
during the extensive sampling carried out in this area in the past
two years by New Found Gold Corp. have led to a rush of activity
within the belt and indicate that the property is prospective for
structurally hosted, epizonal gold mineralization to occur.
George Drazenovic, CEO of St.
James Gold Corp. stated, "With recent shallow, high-grade,
coarse visible gold discoveries nearby, proximity to the Queensway
North project and strategic location within these fault zones, we
believe the Company is well positioned to provide shareholders a
prime environment for discovery in one of the last easily
accessible gold exploration districts in the world. Given the
many spectacular gold intersections published by New Found Gold
Corp. in recent weeks, the company will look to pursue a program of
geological mapping, soil, till and bedrock geochemical sampling and
shallow drilling to bedrock on gold responses. While the
strike length of the veins hosting gold mineralization continue to
grow in the region, gold exploration in this area is still in its
early stages and the details of control on mineralization is
somewhat unknown until extensive drilling has taken place. We
intend to pursue a program to consolidate all available historic
data, initiate a work program with the intention of developing
drill targets in the coming months and ultimately enhance
shareholder value."
Pursuant to the terms of the Option Agreement, total aggregate
consideration payable by the Company is an aggregate of
$50,000 cash over three years,
exploration totaling not less than $50,000 over three years, and the issuance of an
aggregate of 200,000 common shares of the Company to Mr. Froude as
follows:
- 50,000 common shares on the approval of the Option Agreement by
the TSX Venture Exchange ("Exchange Approval");
- 50,000 common shares on the first anniversary of Exchange
Approval;
- 50,000 common shares on the second anniversary of Exchange
Approval; and
- 50,000 common shares on the third anniversary of Exchange
Approval.
Mr. Froude will retain a royalty of 2% net smelter returns on
production from the Grub Line Claims. Additionally, the Company
will be required to issue an additional 500,000 common shares to
Mr. Froude if at any time before or after exercise of the option
the Company obtains a 43-101 Report estimating an inferred mineral
resource of not less than 100,000 ounces of Au.
About St. James Gold Corp.
St. James Gold Corp. is a mineral exploration company focused on
the acquisition, exploration and development of precious metal
projects in North America. The
Company is actively looking to acquire valuable and high quality
projects. St. James Gold Corp.'s value add strategy is to acquire
prospective exploration projects, integrate all available
geological, geochemical and geophysical datasets with underlying
geological theories, and fully fund and enhance the efficiency of
its exploration programs. The Company is based in Vancouver, British Columbia, and is listed on
the TSX Venture under the symbol "LORD" and in the U.S. Otcmarkets
under "LRDJF".
Forward-Looking Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. The Company cautions that all
forward looking statements are inherently uncertain and that actual
performance may be affected by a number of material factors, many
of which are beyond the Company's control in particular, the fact
that the Company is reviewing potential mineral property
acquisitions is not an assurance that a suitable acquisition will
be found. Even if the Company is successful in making an
acquisition, it may require additional financing to carry out
exploration and development objectives on the property. Such
other factors include, obtaining the necessary permits to carry out
its activities and the need to comply with environmental and
governmental regulations. Accordingly, actual and future events,
conditions and results may differ materially from the estimates,
beliefs, intentions and expectations expressed or implied in the
forward-looking information. Except as required under applicable
securities legislation, the Company undertakes no obligation to
publicly update or revise forward-looking information.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITYFOR THE ADEQUACY OR
ACCURACYOF THIS RELEASE.
George Drazenovic, CEO
St. James Gold Corp.
For further information, please contact:
George Drazenovic, Chief Executive
Officer
Tel: 800-278-2152
Email: info@stjamesgold.com
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SOURCE St. James Gold Corp.