VANCOUVER, BC / ACCESSWIRE / August 3, 2021 / Millennium Silver Corp. (formerly International Millennium Mining Corp.) (TSXV:MSC) ("Millennium Silver" or the "Company"), is pleased to announce that it has entered into an Option Agreement (the "Option Agreement") to acquire one hundred and thirty-five (135) mineral claims covering three thousand three hundred seventy-five (3,375) hectares, in Deer Lake, in western Newfoundland (the "Pynn's Brook Property").
Under the terms of the Option Agreement, Millennium Silver has agreed to pay C$6,875 (the "Cash Consideration") and issue one million (1,000,000) common shares in the capital stock of the Company to the Optionors over a period of six (6) months, subject to receiving TSX Venture Exchange ("TSX-V") approval. Pursuant to the Option Agreement, the Optionors shall also be entitled to receive a royalty on production equal to one and one half of one percent (1.5%) Net Smelter Return Royalty ("NSR"), of which one half of one percent (0.5%) interest of the NSR can be purchased by the Company for C$500,000.
The Pynn's Brook Property overlies the Pynn's Brook ophiolite and coincident NE/SW structural trend, located near Deer Lake, in western Newfoundland. The Pynn's Brook Property covers an 18 km portion of the trend which represents a continuation of the prolific, gold-rich, 3-5 km wide, Baie Verte (structural) Lineament, located 75-145 km farther northeast, on the Baie Verte Peninsula. More regionally, this feature comprises part of the Baie Verte-Brompton Line - a major Appalachian-scale tectonic suture zone, marking the collisional boundary between Cambrian to Ordovician oceanic crust (ophiolite), of the ancient Iapetus Ocean basin, and Precambrian, deformed, continentally-derived, siliciclastic sediments (Fleur de Lys Group) of the ancient North American continent. Throughout the Appalachians, these tectonostratigraphic divisions are represented by the Dunnage and Humber Zones, respectively.
In western Newfoundland, the Baie Verte-Brompton Line remains largely hidden due to younger (Devonian-Carboniferous) sedimentary cover. However, relatively late faulting along the Deer Lake sedimentary basin, has resulted in significant uplift and erosion, leading to exposure of the underlying thrust-faulted contact between the older oceanic crustal rocks (Pynn's Brook Ophiolite) and metamorphosed siliciclastic rocks (of the Fleur de Lys Group). On the Baie Verte Peninsula, the structural contact zone between these two terranes is host to numerous gold occurrences with two discoveries in the late 1980's (Pine Cove and Stogertite deposits) presently undergoing production.
Logistically, the Pynn's Brook Property is conveniently located near the Trans Canada Highway and adjacent to a power transmission line, and lies between the nearby towns of Pasadena and the airport town of Deer Lake. A number of old logging roads provide access through various portions of the Pynn's Brook Property.
The Pynn's Brook Property acquisition brings the Company's total mineral claim holdings in Newfoundland and Labrador to five thousand seven hundred and seventy-five (5,775) hectares.
In addition to the shares to be issued pursuant to the Option Agreement, Millennium Silver has agreed to pay a finders fee of 30,000 common shares. The Option Agreement and related finders fee remain subject to the final approval of the TSX-V. Any securities issued in connection with the transaction will be subject to applicable statutory hold periods for a period of four months from the date of issuance.
John A. Versfelt, President and CEO, states, "We are pleased to acquire another prospective property in Newfoundland, which is deservedly experiencing much exploration attention, largely due to successful drilling campaigns, which are defining epizonal orogenic gold results within deep seated parallel structural faults trending NE/SW across Newfoundland."
Seymour M. Sears, P.Geo., a qualified person as defined by National Instrument 43-10 has reviewed and approved the scientific and technical content of this news release on behalf of the Company.
Millennium Silver Corp. (TSX-V: MSC) is focused on the exploration and development of its Silver Peak silver-gold project in southwest Nevada. The Company's common shares trade on the Exchange under the symbol: MSC.
ON BEHALF OF THE BOARD
"John A. Versfelt"
John A. Versfelt
President and CEO
Further information about the Company can be found on SEDAR (www.sedar.com), the Company's website (www.millenniumsilver.ca) or by contacting Mr. John Versfelt, President & CEO of the Company at 604-527-8135.
Neither 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. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE: Millennium Silver Corp.