VANCOUVER, BC / ACCESSWIRE / August 10, 2020 / Victory Resources Corporation (CSE:VR)(FWB:VR61)(OTC PINK:VRCFF) ("Victory" or the "Company) is pleased to announce that the Company has entered into an option agreement for Victory to acquire 100% interest in the Hammond Reef South Project, which adjoins Agnico Eagle's Hammond Reef Project in Northwestern Ontario.
"Hammond Reef South represents the first major advance in Victory's recently announced objective to embark on a significant gold, silver and precious metals acquisition strategy," said Mr. David Lane, President and CEO of Victory.
The Hammond Reef South Project adjoins Agnico Eagle's Hammond Reef Project, which contains an open pit measured and indicated mineral resource of 208 million tonnes grading 0.67 gpt gold (containing 4.5 million ounces of gold), as well as open pit inferred mineral resource of 0.5 million tonnes grading 0.74 gpt gold (containing 12,000 ounces of gold), using a cut-off grade of 0.32 gpt, as of December 31, 2019 (see Agnico Eagle news release dated February 13, 2020 for further information). An Amended Environmental Assessment was submitted in January 2018 and the project subsequently received environmental approval from both Federal and Provincial agencies (see notice of approval dated May 16, 2019 on Agnico Eagle's website).
"The Hammond Reef south property is immediately adjacent to this zone and may contain extensions of the Hammond Reef zone or parallel structures. Agnico has staked a large area which completely surrounds the property, suggesting they consider the area prospective," said Victory geologist, Mr. Helgi Sigurgeirson. "A program of magnetometer and soil surveys, along with geological mapping and prospecting, is proposed with the purpose of locating zones of Hammond Reef style mineralization on the Hammond Reef South Property."
Terms of the Agreement
Victory Resources may earn a 100% interest in the project (subject to a 2% NSR payable to Abitibi Royalties) and subject to receiving regulatory approval, by making the following cash and share payments, including exploration commitments:
Cash and Share Payments
- Option Agreement Signing: 500,000 Victory common shares and $50,000 cash
- Year 1 Anniversary: 750,000 Victory s common shares and $75,000 cash
- Year 2 Anniversary: 1,500,000 Victory common shares and $150,000 cash
- On or Before Year 1 Anniversary: $100,000 ($25,000 firm commitment)
- On or Before Year 2 Anniversary: $150,000
- On or Before Year 3 Anniversary: $300,000
Scientific and technical information contained in this press release was reviewed and approved by Mr. Helgi Sigurgeirson, Victory geologist, and a "qualified person" under NI 43-101.
The corporation has agreed to pay a finder's fee to arms-length parties of a total of 8% of the gross proceeds payable in cash and 8% warrants based on the number of shares issuable under the Agreement, both restricted to the first year. The warrants will be for a 2-year term and priced at $0.15.
For further information, please contact:
Telephone: +1 (236) 317 2822
E-mail: [email protected]
About Victory Resources Corporation
VICTORY RESOURCES CORPORATION (CSE:VR) is a publicly traded diversified investment corporation with mineral interests in North America. The company is also currently seeking other exploration opportunities, preferably in Canada.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.
SOURCE: Victory Resources Corp.