Brixton Metals Corporation
(TSX-V: BBB, OTCQB:
BBBXF) (the “
Company” or
“
Brixton”) is pleased to announce that it has
entered into a definitive option agreement (the “Option Agreement”)
with Eldorado Gold Corporation (“
Eldorado”),
whereby Eldorado has been granted the option to acquire
100%-ownership (the “Option”) of the Company’s Atlin Goldfields
Project (the “Project”). The Project is a road accessible, 579
square kilometer mineral claim group located near the town of
Atlin, British Columbia and is located within the traditional
territory of the Taku River Tlingit First Nation. All dollar
figures are in Canadian dollars, unless otherwise stated.
Highlights of the Option
Agreement
- During the 5-year option period
(the “Option Period”), Eldorado shall fund $1,000,000 in
exploration expenditures per year beginning September 30th, 2024,
for an aggregate spend of $5,350,000; including an additional
minimum commitment to fund $350,000 of exploration expenditures on
or before September 30th, 2024;
- Eldorado shall make cash payments
to Brixton of $250,000 per year for aggregate payments of
$1,100,000 during the Option Period; including an additional
minimum payment of $100,000 within 10 days of signing the Option
Agreement;
- In addition, at the end of the
Option Period, Eldorado shall have the right to exercise the Option
to acquire 100%-ownership of the Project by making a cash payment
to Brixton in the amount of $7,000,000; where Brixton, at its
election, may receive up to 50% of such payment in the form of
common shares of Eldorado, subject to the prior attainment of the
customary requisite regulatory approvals;
- Eldorado may, in its sole
discretion, elect at any time during the option period to
accelerate the payments or funding timetables for any of the
earn-in requirements of the Option;
- Upon exercise of the Option by
Eldorado, Brixton shall be granted a 1.0% (one percent) net smelter
return royalty (“NSR”), with Eldorado retaining an option to
purchase half (0.5%) of Brixton’s NSR for $2,000,000 prior to the
commencement of commercial production at the Project; and
- During the Option Period, Brixton
shall be the Operator of the Project with Eldorado approving all
work programs and budgets relating to the Project. Eldorado will
also work closely and support Brixton with respect to ongoing
environmental monitoring and community engagement efforts.
Chairman and CEO, Gary R. Thompson stated, “We
are delighted to have attracted Eldorado Gold, a well-established
miner, to the Atlin Goldfields Project. We look forward to working
with Eldorado in advancing this exciting gold project.”
Figure 1. Atlin Goldfields Project Location
Map
About the Atlin Goldfields
Project
The Atlin Goldfields Project is road accessible
near the town of Atlin, BC and about a 2-hour drive from
Whitehorse, Yukon. Since 2016, and over a 3-year period, Brixton
has consolidated its wholly owned 579 square kilometer claim group
with a focus on locating the hard rock source of the placer gold
within the mining camp. The Atlin Goldfields Project covers several
orogenic and intrusion-related gold targets. The Atlin gold camp
has been producing gold for 125 years and is the second largest
placer gold producer in British Columbia with a reported 600,000
ounces of gold produced between 1898 and 1945. An estimated
additional 400,000 ounces of gold have been produced since the
record keeping ceased in 1946 (Ash 2001). The two major placer
producing creeks (Pine and Spruce) and many of the other productive
creeks are located within the Atlin Goldfields Project. The Atlin
gold camp holds the provincial record for the largest gold nugget,
which weighed 2.6 kg (85 ounce) and was discovered on Spruce Creek
(BCGS Paper 2017-1, p.179-193).
Brixton’s rock samples of coarse-grained quartz
veins have returned values of up to 293 g/t gold from the LD
Showing in 2017 and 53.60 g/t gold from the Union Mountain Showing
in 2020. Historical diamond drilling at the Yellowjacket Target has
returned up to 509.96 g/t gold (16.39 oz/ton gold) over 5.57m.
Brixton’s drilling in 2023 returned 35.00m of 0.77 g/t gold
including 19.00m of 1.34 g/t gold including 0.45m of 38.10 g/t gold
at the Yellowjacket Target. In 2019, Brixton drilled 8.53 g/t gold
over 2.00m at the LD showing.
The Atlin Goldfields Project is located on the
margin of a deep-seated structural and terrane boundary. The
Project is underlain primarily by Mississippian to Triassic-aged
volcanic and sedimentary rocks of the Cache Creek Complex,
including quartz-carbonate-mariposite-altered ultramafic to
listwanite and mafic rocks, which are commonly associated with the
gold mineralization in the region. The Cache Creek Complex is
intruded by the Middle Jurassic Fourth of July batholith and the
Late Cretaceous Surprise Lake batholith.
Over 39,500m of drilling has been completed
across the property including 1,599m in 2019 at LD and Pictou (22
collars), 292m in 2022 at Yellowjacket (2 collars), and 350m in
2023 at Yellowjacket (1 collar)
Brixton has collected and compiled thousands of
surface samples: 2,140 rock samples, 12,650 soil samples, 210 silt
samples and 23 associated bulk leach extractable gold samples
(BLEG) and 161 biogeochemical samples.
A total of 6,563-line kms of magnetic
geophysical surveys have been completed across the project
area.
Figure 2. Atlin Goldfields Project, Targets on
Gold Geochemistry.
Qualified Person (QP)
Mr. Corey A. James, P.Geo., is a Senior Project
Geologist for the Company who is a qualified person as defined by
National Instrument 43-101. Mr. James has verified the referenced
data disclosed in this press release and has approved the technical
information presented herein.
About Eldorado Gold
Corporation
Eldorado is a gold and base metals producer with
mining, development and exploration operations in Turkiye, Canada,
and Greece. Eldorado has a highly skilled and dedicated workforce,
safe and responsible operations, a portfolio of high-quality
assets, and long-term partnerships with local communities.
Eldorado's common shares trade on the Toronto Stock Exchange (TSX:
ELD) and the New York Stock Exchange (NYSE: EGO).
About Brixton Metals
Corporation
Brixton Metals is a Canadian exploration company
focused on the advancement of its mining projects. Brixton wholly
owns four exploration projects: Brixton’s flagship Thorn
copper-gold-silver-molybdenum Project, the Hog Heaven
copper-silver-gold Project in NW Montana, USA, which is optioned to
Ivanhoe Electric Inc., the Langis-HudBay silver-cobalt-nickel
Project in Ontario and the Atlin Goldfields Project located in
northwest BC which is optioned to Eldorado Gold Corporation.
Brixton Metals Corporation shares trade on the TSX-V under the
ticker symbol BBB, and on the OTCQB under the
ticker symbol BBBXF. For more information about
Brixton, please visit our website at www.brixtonmetals.com.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Chairman and CEO
For Investor Relations inquiries please contact:
Mr. Michael Rapsch, Senior Manager, Investor Relations. email:
michael.rapsch@brixtonmetals.com or call Tel: 604-630-9707
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.
Information set forth in this news release may
involve forward-looking statements under applicable securities
laws. Forward-looking statements are statements that relate to
future, not past, events. In this context, forward-looking
statements often address expected future business and financial
performance, and often contain words such as “anticipate”,
“believe”, “plan”, “estimate”, “expect”, and “intend”, statements
that an action or event “may”, “might”, “could”, “should”, or
“will” be taken or occur, including statements that address
potential quantity and/or grade of minerals, potential size and
expansion of a mineralized zone, proposed timing of exploration and
development plans, or other similar expressions. All statements,
other than statements of historical fact included herein including,
without limitation, statements regarding the use of proceeds. 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 include, among others, the following
risks: the need for additional financing; operational risks
associated with mineral exploration; fluctuations in commodity
prices; title matters; and the additional risks identified in the
annual information form of the Company or other reports and filings
with the TSXV and applicable Canadian securities regulators.
Forward-looking statements are made based on management’s beliefs,
estimates and opinions on the date that statements are made and the
Company undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other
circumstances should change, except as required by applicable
securities laws. Investors are cautioned against attributing undue
certainty to forward-looking statements.
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