Got this as an email just now. Probably a link to it somewhere
First Mining Announces Closing Of US$22.5 Million Funding By First Majestic Silver To Advance The Springpole Gold Project
July 2, 2020 – Vancouver, Canada – First Mining Gold Corp. (“First Mining” or the “Company”) (TSX: FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce the closing of its previously announced transaction with First Majestic Silver Corp. (“First Majestic”) (TSX: FR) (NYSE: AG) to advance the Company’s 100%-owned Springpole Gold Project (“Springpole” or the “Project”) located in Ontario, Canada. Under the terms of a silver purchase agreement (the “Agreement”) that First Majestic has entered into with the Company, First Majestic has agreed to pay First Mining total consideration of US$22.5 million, over three stages, for the right to purchase 50% of the payable silver produced from Springpole for the life of the Project (the “Stream”).
As initial upfront consideration, First Majestic paid US$10 million to First Mining on closing, with US$2.5 million paid in cash and the remaining US$7.5 million paid in common shares of First Majestic (the Company received 805,698 First Majestic shares) which are subject to a statutory hold period of four months plus one day from the closing date.
Additional consideration payable for the Stream includes two further payments (in cash and First Majestic shares) based on Project-related milestones. Upon completion of a positive Pre-Feasibility Study (“PFS”) for Springpole, First Mining will receive US$7.5 million from First Majestic, with a further US$5 million payable upon First Mining receiving approval of a Federal or Provincial Environmental Assessment for the Project. Further details relating to the transaction and the terms of the Agreement with First Majestic are provided in the Company’s news release dated June 11, 2020.
The proceeds received by First Mining will be used to advance Springpole through the PFS and the Environmental Assessment processes, and to fund general corporate expenses. Field personnel returned to the Project site in June 2020 to continue environmental and geotechnical data collection efforts. The Springpole camp is
Qualified Person
Hazel Mullin, P.Geo., Director, Data Management and Technical Services of First Mining, is a “Qualified Person” for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), and she has reviewed and approved the scientific and technical disclosure contained in this news release.
Springpole Gold Project
Springpole is one of the largest undeveloped open pit gold assets in Canada, with permitting and a Pre-Feasibility Study underway. The Project covers 41,943 hectares in northwestern Ontario, located approximately 110 kilometres northeast of Red Lake. Springpole currently hosts 4.67 million ounces gold in the Indicated category and 0.23 million ounces gold in the Inferred category, and the results of a Preliminary Economic Assessment study published in 2019 (“PEA”) showcased the Project’s size and scale. The study highlights an open pit mine and milling operation with the potential to produce an average of 410,000 ounces of gold annually when in production (years two to nine). First Mining acquired the Project in November 2015 through its acquisition of Gold Canyon Resources Inc.
For additional details, including a description of data verification and QA/QC procedures, refer to the technical report titled “Preliminary Economic Assessment Update for the Springpole Gold Project, Ontario, Canada”, dated November 5, 2019, which was prepared for First Mining by SRK Consulting (Canada) Inc. in accordance with NI 43-101, and which is available under First Mining’s SEDAR profile at www.sedar.com. First Mining notes that the PEA is preliminary in nature, in that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and that there is no certainty that the PEA will be realized.
AI
