First Mining Announces Sale of Non-Core Eagle Claims in Manitoba

Rhea-AI Summary

First Mining Gold Corp. (TSX: FF, OTCQX: FFMGF) announced the sale of its non-core Eagle Claims in Manitoba to Grid Metals Corp. for a total value of C$300,000 in cash, 250,000 common shares of Grid Metals, and a future contingent payment of C$350,000, along with a 2.0% NSR royalty on the claims. CEO Dan Wilton emphasized that this transaction demonstrates the value in First Mining's asset portfolio, allowing the company to retain an interest in battery metals through its shareholdings in Grid Metals. First Mining views this as a strategic move to streamline its focus on core gold projects while participating in the growing battery minerals sector.

Positive

• Generated total cash consideration of C$300,000 from the sale.
• Acquired 250,000 common shares in Grid Metals, increasing investment diversification.
• Future contingent payment of C$350,000 adds potential future revenue.
• Retained a 2.0% NSR royalty on the Eagle Claims, allowing for ongoing revenue opportunities.

Negative

• None.

VANCOUVER, BC, April 24, 2023 /PRNewswire/ - First Mining Gold Corp. ("First Mining" or the "Company") (TSX: FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce that it has sold certain mining claims in Manitoba (the "Eagle Claims") to Grid Metals Corp. (TSX-V:GRDM) ("Grid Metals") for total consideration comprised of C$300,000 in cash, 250,000 common shares of Grid Metals, a future contingent payment of C$350,000 and a 2.0% NSR royalty on the Eagle Claims.

"This transaction continues to demonstrate value in the First Mining asset portfolio," stated Dan Wilton, CEO of First Mining.  "We acquired these claims as part of the Duparquet transaction last September and deemed these claims non-core.  The team at Grid Metals has demonstrated potential for battery metals in the district and First Mining is excited to become shareholders in this emerging growth sector while retaining upside with a future payment and an NSR royalty."

Grid Metals is a mining exploration company focused on both lithium and Ni-Cu-PGM in the Bird River area located approximately 150 km northeast of Winnipeg Manitoba. Grid Metals also has a PEA stage Ni-Cu-PGM-Co project (Makwa-Mayville) undergoing exploration and development activity.  Grid Metals trades on the TSX Venture under the symbol GRDM.

About First Mining Gold Corp. 

First Mining is a gold developer advancing two of the largest gold projects in Canada, the Springpole Gold Project in northwestern Ontario, where we have commenced a Feasibility Study and permitting activities are on-going with a draft Environmental Impact Statement ("EIS") for the project published in June 2022, and the Duparquet, Pitt Gold, Duquesne and Porcupine East Gold Project in Quebec, a collection of advanced-stage development assets located on the Destor-Porcupine Fault Zone in the prolific Abitibi region.  First Mining also owns the Cameron Gold Project in Ontario and a portfolio of gold project interests including the Pickle Crow Gold Project (being advanced in partnership with Auteco Minerals Ltd.), the Hope Brook Gold Project (being advanced in partnership with Big Ridge Gold Corp.), and an equity interest in Treasury Metals Inc.

First Mining was established in 2015 by Mr. Keith Neumeyer, founding President and CEO of First Majestic Silver Corp. 

ON BEHALF OF FIRST MINING GOLD CORP.

Daniel W. Wilton
Chief Executive Officer and Director

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this news release. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "plans", "projects", "intends", "estimates", "envisages", "potential", "possible", "strategy", "goals", "opportunities", "objectives", or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions.

Forward-looking statements in this news release relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future.  All forward-looking statements are based on First Mining's or its consultants' current beliefs as well as various assumptions made by them and information currently available to them. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Such factors include, without limitation the Company's business, operations and financial condition potentially being materially adversely affected by the outbreak of epidemics, pandemics or other health crises, such as COVID-19, and by reactions by government and private actors to such outbreaks; risks to employee health and safety as a result of the outbreak of epidemics, pandemics or other health crises, such as COVID-19, that may result in a slowdown or temporary suspension of operations at some or all of the Company's mineral properties as well as its head office; fluctuations in the spot and forward price of gold, silver, base metals or certain other commodities; fluctuations in the currency markets (such as the Canadian dollar versus the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding); the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities, indigenous populations and other stakeholders; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development; title to properties.; and the additional risks described in the Company's Annual Information Form for the year ended December 31, 2022 filed with the Canadian securities regulatory authorities under the Company's SEDAR profile at www.sedar.com, and in the Company's Annual Report on Form 40-F filed with the SEC on EDGAR.

First Mining cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to First Mining, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. First Mining does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on our behalf, except as required by law. 

Cautionary Note to United States Investors 

The Company is a "foreign private issuer" as defined in Rule 3b-4 under the United States Securities Exchange Act of 1934, as amended, and is eligible to rely upon the Canada-U.S. Multi-Jurisdictional Disclosure System, and is therefore permitted to prepare the technical information contained herein in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of the securities laws currently in effect in the United States. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards.

Technical disclosure contained in this news release has not been prepared in accordance with the requirements of United States securities laws and uses terms that comply with reporting standards in Canada with certain estimates prepared in accordance with NI 43-101.

NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning the issuer's material mineral projects.

View original content to download multimedia:https://www.prnewswire.com/news-releases/first-mining-announces-sale-of-non-core-eagle-claims-in-manitoba-301805054.html

SOURCE First Mining Gold Corp.

FAQ

What are the financial details of First Mining Gold Corp.'s sale of the Eagle Claims?

First Mining Gold Corp. sold the Eagle Claims for C$300,000 in cash, 250,000 common shares of Grid Metals, a future contingent payment of C$350,000, and a 2.0% NSR royalty.

When was the sale of the Eagle Claims by First Mining Gold Corp. announced?

The sale of the Eagle Claims was announced on April 24, 2023.

What is the significance of the Eagle Claims sale for First Mining Gold Corp.?

The Eagle Claims sale allows First Mining to streamline its portfolio, focusing on core gold projects while retaining an interest in the emerging battery metals sector.

Which company acquired the Eagle Claims from First Mining Gold Corp.?

The Eagle Claims were acquired by Grid Metals Corp.

What is the stock symbol for First Mining Gold Corp.?

The stock symbols for First Mining Gold Corp. are TSX: FF and OTCQX: FFMGF.