E2gold Stakes Claims To North And South Of Mckinnon Zone, Enlarging Its Flagship Hawkins Project

Rhea-AI Summary

E2Gold Inc. (OTCQB:ETUGF) has acquired the mineral rights to 381 new claims in the Hawkins Gold Project region of Ontario, enhancing its coverage of the Kabinakagami Greenstone Belt. The company aims to map and prospect these claims, with potential drilling targets for 2023. Additionally, E2Gold plans to issue 3,333,333 common shares at $0.06 each, fulfilling a share payment obligation worth $200,000 under an option agreement with Pavey Ark Minerals. Approval from the TSX Venture Exchange is pending.

Positive

• Acquisition of 381 mineral claims expands Hawkins Gold Project's area.
• New geological indicators suggest potential for poly-metallic targets.
• Planned drilling targets for 2023 could enhance resource potential.

Negative

• Share issuance may dilute existing shareholder value.

TORONTO, ON / ACCESSWIRE / June 30, 2022 / E2Gold Inc. (TSXV:ETU, OTCQB:ETUGF) (the "Company" or "E2") is pleased to announce that the Company has acquired through staking the mineral rights to 381 claims north and south of the central Hawkins Corridor, where the McKinnon Zone is located on the Hawkins Gold Project in north-central Ontario. The newly staked claims strategically secure more of the Kabinakagami Greenstone Belt, part of the regional and gold bearing Abitibi-Wawa Greenstone Belt.

Regional government magnetic and geological surveys indicate the trends found along the McKinnon Zone. The Company's first steps on the new claims will be mapping and prospecting, with drill targets being potentially developed for 2023.

Figure 1: The Hawkins Gold Project with recently staked claims.

Airborne magnetics and local mapping have led E2's geologists to note geologic indicators suggesting some of these new targets are potentially poly-metallic in nature.

E2Gold also announces that it has agreed to complete the third year anniversary share issuance pursuant to the option agreement between the Company and Pavey Ark Minerals Inc. dated January 28, 2020 (the "Option Agreement") for its Hawkins Gold property. The Company proposes to issue 3,333,333 common shares (the "Option Shares") at a deemed price of $0.06 per share, in satisfaction of the share payment valued at $200,000 due pursuant to the Option Agreement. The issuance of the Option Shares remains subject to the approval of the TSX Venture Exchange.

ABOUT E2GOLD INC.

E2Gold Inc. is a Canadian gold exploration company with a focus on Its large, 75 km long flagship property, the Hawkins Gold Project, which covers seven townships in north-central Ontario, about 140 km east of the Hemlo Gold Mine. The Company is currently conducting a robust surface exploration program on the Hawkins Gold Project to develop drill targtes for a 10,000 m program. E2Gold is commited to increasing shareholder value through the development of all targets at Hawkins and future potential of the Band-Ore property.

For further information please contact:

Eric Owens
Chief Executive Officer
Tel. (416) 509-5385
Email: eric.owens@e2gold.ca

Ellie Owens
President
Tel. 647-575-2888
Email: ellie.owens@e2gold.ca

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 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, including with respect to the receipt of approval of the issuance of the Option Shares by the TSX Venture Exchange. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of E2, including the timing and nature of all 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.

SOURCE: E2Gold Inc.

View source version on accesswire.com:
https://www.accesswire.com/707176/E2gold-Stakes-Claims-To-North-And-South-Of-Mckinnon-Zone-Enlarging-Its-Flagship-Hawkins-Project

FAQ

What new claims has E2Gold staked near the McKinnon Zone?

E2Gold has staked 381 mineral claims in the Hawkins Gold Project area, enhancing its coverage in the Kabinakagami Greenstone Belt.

What is the purpose of the new claims staked by E2Gold?

The new claims will undergo mapping and prospecting, with potential drill targets being developed for 2023.

How many shares is E2Gold planning to issue and at what price?

E2Gold intends to issue 3,333,333 common shares at a deemed price of $0.06 each.

What is the significance of the Option Agreement for E2Gold?

The Option Agreement requires E2Gold to issue shares valued at $200,000, which fulfills part of its obligations for the Hawkins Gold property.

Is the share issuance subject to regulatory approval?

Yes, the issuance of the shares is subject to approval from the TSX Venture Exchange.