Transaction Highlights
- Gold Line to acquire 100% ownership of two advanced exploration projects: The acquisition of two advanced stage gold exploration projects in
Finland andSweden will augment and expand Gold Line's existing portfolio in the Nordic region. Gold Line and EMX already have active, multi-asset exploration programs underway in the Gold Line Belt region of northernSweden . The Transaction will result in Gold Line acquiring a 100% ownership interest in these Projects, and EMX will gain additional royalty exposure in two emerging gold belts - Existing resource base with strong expansion and discovery potential: The Oijärvi
Gold Project contains the drill defined Kylmäkangas deposit, with a historical inferred mineral resource of 1.89 million tonnes (Mt) grading 4.11 grams per tonne (g/t) gold (Au) for 250,000 oz Au and 31.11 g/t silver (Ag) for 1,896,000 oz Ag.1 The mineralized system remains open for expansion at depth and along strike of the 1.5 kilometer (km) mineralized trend of known mineralization. - In addition to the Kylmäkangas deposit, reconnaissance drilling by Agnico has identified additional zones of mineralization both along trend and as parallel zones of mineralization elsewhere on the Oijärvi
Gold Project . Several of these peripheral targets merit follow-up. - Novel grassroots discovery in
Southern Sweden :The Solvik Gold Project is a novel discovery of quartz vein and shear zone-hosted gold mineralization in southernSweden , in an area that has seen little historical gold exploration. Five key areas at Solvik contain drill defined zones of mineralization, with multiple untested targets elsewhere on the property, although no mineral resources have been reported at Solvik. - Significant technical database to support a renewed exploration focus: 335 holes have been drilled to date across the Projects for a total of 60,218 meters (m). Historical drill intercepts include 22.6 g/t of gold and 126.3 g/t of silver over 11.0 m (estimated true width) at the Oijärvi
Gold Project and 2.50 g/t Au over 19.4 m (estimated true width) at theSolvik Gold Project .2 - Gold Line and EMX to expand strategic partnership: EMX will receive additional shares in Gold Line that will increase EMX's ownership position. Gold Line will continue to work closely with EMX as its exploration partner in the region and have already commenced planning to expand Gold Line's 2021 exploration program to incorporate several high priority opportunities identified on the Projects.
__________________________ | |
1 | See Agnico News Release dated |
2 | The historical drilling was reported by Agnico. Gold Line has not done sufficient work to verify these drill results but believes the drill results to be reliable and relevant. |
Oijärvi
The Oijärvi
A total of 292 holes have been drilled to date across the project for a total of 51,854 m. Several holes have intersected significant gold values over large thicknesses, including 22.6 g/t Au and 126.3 g/t Ag over 11.0m (estimated true width). Mineralization is developed in and around swarms of orogenic-style quartz veins associated with quartz-feldspar porphyry intrusions, and with disseminated sulfides in sediments, the latter style of mineralization only being recently recognized in the district.
The project contains the drill defined Kylmäkangas deposit, which comprises a historical inferred mineral resource of 1.89 Mt grading 4.11 g/t Au for 250,000 oz Au and 31.11 g/t Ag for 1,896,000 oz Ag. The mineralized system remains open at depth and along strike towards southwest and northeast. A qualified person has not done sufficient work to classify the historical resource estimate discussed above as a current mineral resource and Gold Line is not treating the historical estimate as a current mineral resource. Significant data compilation, re-drilling, re-sampling and data verification may be required by a qualified person before the historical estimate can be classified as a current mineral resource. The historical resource estimate is presented only for the purpose of describing the extent of gold mineralization and to outline the exploration potential. This historical resource estimate should not be relied upon.
Reconnaissance drilling 1.8 km to the southwest of the Kylmäkangas deposit intersected gold mineralization in the same stratigraphic position as Kylmäkangas, with little to no drilling in between. The sediment-hosted gold mineralization described above was intercepted in drill hole
A total of 43 holes have been drilled to date across the project for a total of 8,364 m. Several holes have intersected gold mineralization with the best intercepts being 2.50 g/t Au over 19.4 m and 2.71 g/t Au over 8.5 m (estimated true widths). Over 100 channel samples from outcrops and boulders have returned a number of surface high grade Au-grades between 1.0 - 90.1 g/t Au.
There was little to no modern exploration conducted in the area prior to Agnico's exploration work in 2011 and the project area remains underexplored.
Transaction Details
Pursuant to the terms of the Agreement, Gold Line will purchase the Projects from Agnico and Agnico will retain a 2% NSR royalty on the Projects, 1% of which may be purchased at any time by EMX for
Consideration for the Transaction is
Date | Cash Payments | EMX Shares | Gold |
Upon signing of the Agreement | |||
On the first anniversary of the | |||
On the second anniversary of the | |||
On the third anniversary of the | - | - | |
Total |
As part of the Agreement, EMX will receive cash and share payments from Gold Line as set out in the table below, as well as the purchase right of 1% of Agnico's 2% NSR royalty.
Date | Cash Payments | Gold | Total Payable |
Upon signing of the Agreement | - | ||
On the first anniversary of the | |||
On the second anniversary of the |
In connection with the entering into of the Agreement, and upon completion of the Transaction, the Company intends to pay a fee of
Completion of the Transaction is subject to customary closing conditions, including the approval by the
The scientific and technical information in this news release has been reviewed and approved by
About
Gold Line is focused on advancing gold projects with significant exploration potential in prolific gold-producing regions of
Gold Line currently holds a prospective portfolio of five gold exploration projects in
About EMX.
EMX is a precious and base metals royalty company. EMX's investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company's common shares are listed on the NYSE American Exchange and the
Neither the
Cautionary Note Regarding Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements." Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause Gold Line's actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this news release include, among others, statements relating to expectations regarding the completion of the Transaction (including the timing for completion and receipt of all required approvals), the business, exploration and development plans of Gold Line following completion of the Transaction, the results of exploration and development activities, the anticipated benefits and synergies of the Transaction, and other statements that are not historical facts. Forward-looking statements are based on Gold Line's and EMX's current beliefs and assumptions as to the outcome and timing of future events, including, but not limited to, that the Transaction will be completed as anticipated, and that the anticipated benefits and synergies of the Transaction will be realized. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: that there is no assurance that the parties will obtain the requisite approvals for the completion of the Transaction, and there is no assurance that the Transaction will be completed as anticipated, or at all, or that the anticipated benefits or synergies of the Transaction will be realized; following completion of the Transaction, Gold Line may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions; compliance with extensive government regulation; domestic and foreign laws and regulations could adversely affect Gold Line's business and results of operations; the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of Gold Line's or EMX's securities, regardless of its operating performance; and the impact of COVID-19.
The forward-looking statements contained in this news release represent the expectations of Gold Line and EMX as of the date of this news release and, accordingly, are subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Neither Gold Line nor EMX undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
SOURCE
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