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GFG Closes Sale of its Rattlesnake Hills Gold Project with Patriot Gold

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GFG Resources (GFGSF) has completed the sale of its Rattlesnake Hills Gold Project to Patriot Gold Vault for approximately C$3.3 million. The transaction includes multiple cash payments: C$250,000 at LOI signing, C$250,000 upon definitive agreement, C$1.2 million at closing, and C$1 million due December 16, 2025. Additionally, GFG received 3,061,224 Axcap common shares.

The deal includes potential additional compensation if a resource estimate exceeds 3 million gold ounces, with Patriot paying C$1 per total mineral resource ounce. Patriot will also assume environmental liability and handle the refund of GFG's US$219,000 reclamation bond.

GFG Resources (GFGSF) ha completato la vendita del suo Progetto Aurifero Rattlesnake Hills a Patriot Gold Vault per circa C$3,3 milioni. La transazione include diversi pagamenti in contante: C$250.000 al momento della firma della lettera di intenti, C$250.000 alla stipula dell'accordo definitivo, C$1,2 milioni al closing e C$1 milione dovuto entro il 16 dicembre 2025. Inoltre, GFG ha ricevuto 3.061.224 azioni ordinarie di Axcap.

L'accordo prevede un compenso aggiuntivo potenziale nel caso in cui una stima delle risorse superi i 3 milioni di once d'oro, con Patriot che pagherà C$1 per ogni oncia totale di risorsa minerale. Patriot si assumerà anche la responsabilità ambientale e gestirà il rimborso del bond di ripristino di GFG di US$219.000.

GFG Resources (GFGSF) ha completado la venta de su Proyecto de Oro Rattlesnake Hills a Patriot Gold Vault por aproximadamente C$3.3 millones. La transacción incluye múltiples pagos en efectivo: C$250,000 al firmar la carta de intención, C$250,000 tras el acuerdo definitivo, C$1.2 millones al cierre, y C$1 millón que vence el 16 de diciembre de 2025. Además, GFG recibió 3,061,224 acciones comunes de Axcap.

El acuerdo incluye una compensación adicional potencial si se estima que los recursos superan las 3 millones de onzas de oro, con Patriot pagando C$1 por cada onza total de recurso mineral. Patriot también asumirá la responsabilidad ambiental y se encargará del reembolso del bono de recuperación de US$219,000 de GFG.

GFG 리소스 (GFGSF)는 약 C$3.3백만에 패트리엇 골드 볼트(Patriot Gold Vault)에게 래틀스네이크 힐스 금 프로젝트의 판매를 완료했습니다. 이 거래에는 여러 현금 지급이 포함됩니다: LOI 서명 시 C$250,000, 확정 계약 시 C$250,000, 클로징 시 C$1.2백만, 그리고 2025년 12월 16일에 만기되는 C$1백만입니다. 또한, GFG는 3,061,224개의 Axcap 보통주를 받았습니다.

이 계약에는 자원 추정치가 300만 온스의 금을 초과할 경우 추가 보상이 포함되어 있으며, 패트리엇은 총 광물 자원 온스당 C$1를 지불합니다. 패트리엇은 또한 환경 책임을 수용하고 GFG의 US$219,000 복구 보증금 환급을 처리합니다.

GFG Resources (GFGSF) a finalisé la vente de son Projet d'Or Rattlesnake Hills à Patriot Gold Vault pour environ C$3,3 millions. La transaction comprend plusieurs paiements en espèces : C$250,000 lors de la signature de la lettre d'intention, C$250,000 lors de l'accord définitif, C$1,2 million à la clôture et C$1 million dû le 16 décembre 2025. De plus, GFG a reçu 3.061.224 actions ordinaires d'Axcap.

L'accord inclut une compensation supplémentaire potentielle si l'estimation des ressources dépasse 3 millions d'onces d'or, Patriot payant C$1 par once totale de ressource minérale. Patriot assumera également la responsabilité environnementale et gérera le remboursement de la caution de réhabilitation de GFG de US$219.000.

GFG Resources (GFGSF) hat den Verkauf seines Rattlesnake Hills Goldprojekts an Patriot Gold Vault für etwa C$3,3 Millionen abgeschlossen. Die Transaktion umfasst mehrere Barzahlungen: C$250.000 bei Unterzeichnung der Absichtserklärung, C$250.000 nach dem endgültigen Vertrag, C$1,2 Millionen beim Closing und C$1 Million, das am 16. Dezember 2025 fällig ist. Zusätzlich erhielt GFG 3.061.224 Stammaktien von Axcap.

Das Geschäft umfasst potenzielle zusätzliche Kompensationen, wenn eine Ressourcenschätzung 3 Millionen Unzen Gold übersteigt, wobei Patriot C$1 pro Unze Gesamterzressource zahlt. Patriot wird auch die Umwelthaftung übernehmen und die Rückerstattung von GFGs US$219.000 Rekultivierungsanleihe verwalten.

Positive
  • Immediate cash influx of C$1.7 million from combined payments
  • Future guaranteed payment of C$1 million in December 2025
  • Potential additional payments based on resource discovery milestones
  • Transfer of environmental liabilities to Patriot
  • Refund of US$219,000 reclamation bond
Negative
  • Divestment of a major asset from company portfolio

SASKATOON, Saskatchewan, Dec. 16, 2024 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces the closing of the sale (the “Transaction”) of its 100% owned Rattlesnake Hills Gold Project (the “Project”) to Patriot Gold Vault Ltd., (“Patriot”) a wholly owned subsidiary of Axcap Ventures Inc. (“Axcap”). Under the terms of the Transaction, Patriot will pay GFG an aggregate consideration of approximately C$3.3 million.

“We are pleased to finalize the sale of our Rattlesnake Hills Gold Project as part of our strategy and commitment to maximize value for our shareholders”, stated Brian Skanderbeg, President and CEO of GFG. “This transaction not only provides GFG with exposure to future exploration success on the property through equity and milestone payments, but also allows us to benefit from the majority of the compensation being in cash. Coupled with our recent warrant exercise, this deal significantly bolsters our balance sheet, enabling us to continue our aggressive exploration programs in Timmins at both the Aljo and Muskego targets.”

Transaction Terms
Patriot has acquired 100% interest in the Project on the following terms:

  • Made a cash payment of C$250,000 to GFG on signing of the binding letter of intent (“LOI”);
  • Made a cash payment of C$250,000 to GFG upon the execution and delivery of a definitive agreement;
  • On closing of the Transaction, Patriot:
    • Made a cash payment of C$1,200,000 to GFG; and
    • Issued to GFG 3,061,224 common shares of Axcap (the “Consideration Shares1); and
  • Patriot will pay to GFG an additional cash payment of C$1,000,000 on December 16, 2025.

Additional Terms

  • Subsequent to closing, Patriot will assume environmental liability for the Project and take necessary steps to have GFG’s US$219,000 reclamation bond refunded.
  • If a National Instrument 43-101 resource estimate in the Project reveals a mineral resource of greater than 3,000,000 ounces of gold in a Measured and Indicated or Inferred category, Patriot will pay to GFG a further C$1 per total mineral resource ounce in cash or common shares of Axcap, at the election of Patriot.
  • Patriot will reimburse GFG for all costs and expenses relating to the Project incurred from the date of the signed LOI to December 16, 2024.

(1) The Consideration Shares are subject to a statutory hold period of four months and one day in accordance with applicable securities laws. In addition, the Consideration Shares are subject to contractual resale restrictions whereby one-sixth of the Consideration Shares will be released from resale restrictions every three months, starting on the date of issuance and continuing over 15 months thereafter.

About GFG Resources Inc.
GFG is a North American precious metals exploration company focused on district scale gold projects in tier one mining jurisdictions. The Company operates three gold projects, each hosting large and highly prospective gold properties within the prolific gold district of Timmins, Ontario, Canada. The projects have similar geological settings that host most of the gold deposits found in the Timmins Gold Camp which have produced over 70 million ounces of gold.

For further information, please contact:
Brian Skanderbeg, President & CEO
or
Marc Lepage, Vice President, Business Development
Phone: (306) 931-0930
Email: info@gfgresources.com
Website: www.gfgresources.com  

Stay Connected with Us
Twitter: @gfgresources
LinkedIn: https://www.linkedin.com/company/gfgresources/
Facebook: https://www.facebook.com/GFGResourcesInc/

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.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

All statements, other than statements of historical fact, contained in this news release constitute “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (referred to herein as “forward-looking statements”). Forward-looking statements include, but are not limited to, disclosure regarding possible events, exploration plans and expected results, conditions or financial performance that is based on assumptions about future economic conditions and courses of action, planned use of proceeds, expenditures and budgets and the execution thereof. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results, “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.

All forward-looking statements are based on various assumptions, including, without limitation, the expectations and beliefs of management, the assumed long-term price of gold, that the current exploration and other objectives concerning its mineral projects can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold will be sustained or will improve; the continuity of the price of gold and other metals, economic and political conditions and operations; and that general business and economic conditions will not change in a materially adverse manner.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of GFG to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks and uncertainties related to the actual results of current exploration activities; environmental risks; future prices of gold; operating risks; accidents, labour issues and other risks of the mining industry; delays in obtaining government approvals or financing; and other risks and uncertainties. These risks and uncertainties are not, and should not be construed as being, exhaustive.

Although GFG has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. In addition, forward-looking statements are provided solely for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements in this news release are made as of the date hereof and GFG assume no obligation to update any forward-looking statements, except as required by applicable laws.


FAQ

What is the total value of GFG Resources' (GFGSF) Rattlesnake Hills Gold Project sale?

The total value of the sale is approximately C$3.3 million, including cash payments and Axcap common shares.

How much immediate cash did GFGSF receive from the Rattlesnake Hills sale?

GFG Resources received immediate cash payments totaling C$1.7 million, comprising C$250,000 at LOI signing, C$250,000 upon definitive agreement, and C$1.2 million at closing.

What are the milestone payment terms for GFGSF in the Rattlesnake Hills sale?

If a resource estimate exceeds 3 million gold ounces, GFG will receive C$1 per total mineral resource ounce in cash or Axcap shares.

When will GFGSF receive the final payment for the Rattlesnake Hills sale?

The final payment of C$1 million is scheduled for December 16, 2025.

How many Axcap shares did GFGSF receive in the Rattlesnake Hills transaction?

GFG Resources received 3,061,224 common shares of Axcap as part of the transaction.

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