Chesapeake Gold Completes Acquisition of Intellectual Property Rights

Rhea-AI Summary

Chesapeake Gold Corp. (TSXV: CKG, OTCQX: CHPGF) announced the completion of its acquisition of intellectual property rights related to sulphide leaching technology from Hycroft Mining Holding The acquisition includes patents, patent applications, and other technology assets. The transaction was finalized with a cash payment of $2,000,000 and the issuance of 1,026,518 common shares valued at $2.92 per share. These shares are under a hold period until October 5, 2024. The deal remains subject to the final approval of the TSX Venture Exchange.

Positive

• Completed acquisition of valuable intellectual property rights related to sulphide leaching technology.
• Transaction includes patents, patent applications, and other technology assets which could enhance technological capabilities.
• Paid $2,000,000 in cash; manageable one-time expenditure.
• Issued 1,026,518 common shares valued at $2.92 each, potentially increasing shareholder value.
• Shares issued are subject to a hold period until October 5, 2024, mitigating immediate dilution risk.

Negative

• The acquisition is still subject to final approval from the TSX Venture Exchange, introducing potential regulatory risk.
• Issuing new shares can lead to shareholder dilution, even if managed by hold period.
• Significant one-time cash expenditure of $2,000,000, impacting short-term liquidity.

Vancouver, British Columbia--(Newsfile Corp. - June 4, 2024) - Chesapeake Gold Corp. (TSXV: CKG) (OTCQX: CHPGF) ("Chesapeake" or the "Company") is pleased to announce that it and Alderley Gold Corp., the Company's wholly-owned subsidiary, have completed the acquisition of the patents, patent applications and certain other technology rights and assets for the sulphide leaching technology from Hycroft Mining Holding Corporation and its wholly-owned subsidiaries on the terms as announced in the news release on May 23, 2024 (the "Acquisition"). On closing, Chesapeake paid $2,000,000 in cash and issued 1,026,518 common shares of the Company at a deemed share price of $2.92 per share (the "Consideration Shares"). The Consideration Shares are subject to a hold period expiring on October 5, 2024. The Acquisition is subject to final approval of the TSX Venture Exchange.

About Chesapeake

Chesapeake Gold Corp. is focused on the discovery, acquisition and development of major gold-silver deposits in North and South America. Chesapeake's flagship asset is the Metates Project located in Durango State, Mexico. Metates hosts one of the largest undeveloped gold-silver deposits in the Americas¹ with over 16.77 million ounces of gold at 0.57 grams per tonne (g/t) and 423.2 million ounces of silver at 14.3 g/t within 921.2 million tonnes in the Measured and Indicated Mineral Resource category and a further 2.13 million ounces of gold at 0.47 g/t and 59.0 million ounces of silver at 13.2 g/t within 139.5 million tonnes in the Inferred Mineral Resource category. See the technical report titled "Metates Sulphide Heap Leach Project Phase I" dated January 13, 2023, and news release dated February 23, 2023.

For Further Information:

For more information on Chesapeake and its Metates and Lucy Project, please visit our website at www.chesapeakegold.com or contact Jean-Paul Tsotsos at invest@chesapeakegold.com or +1-778-731-1362.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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¹Mexico's biggest undeveloped gold deposits as published by Bnamericas, Tuesday, November 24, 2020.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/211741

FAQ

What did Chesapeake Gold (CHPGF) acquire from Hycroft Mining?

Chesapeake Gold acquired patents, patent applications, and certain other technology rights related to sulphide leaching technology from Hycroft Mining.

How much did Chesapeake Gold (CHPGF) pay for the acquisition?

Chesapeake Gold paid $2,000,000 in cash and issued 1,026,518 common shares valued at $2.92 per share.

When do the hold period for the Consideration Shares issued by Chesapeake Gold (CHPGF) expire?

The hold period for the Consideration Shares expires on October 5, 2024.

Is the recent acquisition by Chesapeake Gold (CHPGF) finalized?

The acquisition is completed but subject to final approval from the TSX Venture Exchange.