NioBay Metals Announces Option Agreement to Acquire Two Properties with Niobium Potential

Rhea-AI Summary

NioBay Metals has entered an option agreement with Les Ressources Tectonic to acquire a 100% interest in two niobium properties in Québec. The Gouin Properties cover 11,650 hectares and show potential for niobium discovery. The properties are located near known mineralized sites and have shown significant concentrations of Nb₂O₅. The deal requires total payments of $190,000 in cash and $430,000 either in cash or shares, with a commitment of $1.65 million for exploration over six years.

Positive

• Acquiring two large properties with niobium discovery potential.
• Properties located near existing mineral sites similar to Niobec Mine.
• Option agreement supports NioBay's strategy towards sustainable green metal production.

Negative

• Total payments and work commitment of $2.27 million could strain finances.
• Dependence on regulatory approvals may delay progress.

MONTREAL, May 10, 2021 (GLOBE NEWSWIRE) -- NioBay Metals Inc. ("NioBay" or the "Company") (TSX-V: NBY) (OTCQB: NBYCF), an Environmental Sustainable Governance Indigenous (ESGI) Company, is pleased to announce the signature of an option agreement with Les Ressources Tectonic inc. ("Tectonic") to acquire a 100% interest in two large properties showing exciting potential for niobium discovery (the “Option Agreement”).

The two properties, Gouin East and Gouin West (the “Gouin Properties”), located 150 km south of Chibougamau, Québec, cover two magnetic anomalies, about 6 X 8 km each, remarkably similar in size and structure to the magnetic anomaly over the Niobec Mine, the only niobium commercial operation outside Brazil, located some 200 km east of the Gouin Properties. The composition of a mineralized series of small outcrops and boulders, recently discovered at the periphery of the anomalies, strongly suggest that the magnetic anomalies are produced by an alkaline complex with carbonatites similar to the alkaline complex hosting the Niobec Mine.

"We are excited with the option agreement, as the Gouin Properties hold the potential of a niobium discovery in Québec, and will strengthen our "green" portfolio. The Gouin Properties fit into our vision to become a key player in green metals, supporting low carbon economy." said Claude Dufresne, NioBay’s President and CEO.

The Gouin East and Gouin West properties are made of 114 and 96 claims, respectively, covering a total of 11,650 hectares. These properties are criss-crossed by numerous logging roads at some 75 km from highway 167 and a railroad. A high-voltage line passes just 20 km to the south. These properties are located on the territory of the Opitciwan Atikamekw First Nation whose main agglomeration, Obedjiwan, is about 65 km north-west of the Gouin Properties, on the shore of the Gouin Reservoir.

Limited prospecting works by Tectonic in the last two years led to the discovery of a dozen boulders and few outcrops on the periphery of the magnetic anomalies. The geological composition ranges from syenite and calcio-syenite to carbonatite, typical of a carbonatite-rich alkaline complex. Three of the boulders assayed 0.04%, 0.36% and 0.54% of Nb₂O₅.

Subject to regulatory approvals from the TSX Venture Exchange, the Option Agreement calls for a total of $190,000 in cash payments, $430,000 payable at NioBay’s option either in cash or in common shares of NioBay and $1.65 million in work commitment, over a six-year period. The first installments, payable upon receipt of regulatory approvals, are $10,000 in cash and $20,000 represented by the issuance of 22,591 common shares of NioBay. In addition, the Option Agreement provides for a firm work commitment of $50,000 to be incurred on the Gouin Properties by August 31, 2021. Upon exercise of this option, a 1% NSR royalty will be granted to Tectonic, being redeemable by Niobay for $1.5 million (or $250,000 at any time during the option period).

Qualified Person

This press release was verified and approved by Jacquelin Gauthier, P.Geo. and Qualified Person as defined by National Instrument 43-101. Mr. Gauthier is the Vice-President Geology of NioBay.

About NioBay Metals Inc.

NioBay will be a leader in the Environment, Sustainability, Governance and Indigenous inclusion supporting the development of smart mine(s) with low carbon consumption and responsible water and wildlife management practices. Critical to our success will be the consent and full participation of the Indigenous communities territories where we operate. The Company holds a 100% interest in the James Bay Niobium Project located 45 km south of Moosonee, in the James Bay Lowlands in Ontario. NioBay also holds a 72.5% interest in the Crevier Niobium and Tantalum project located in Québec and a 48% direct participation in mineral titles situated in the Chibougamau region, Québec, under a joint venture agreement with SOQUEM. 

Cautionary Statement

Certain statements contained in this press release constitute forward-looking information under the provisions of Canadian securities laws including statements about the Company's plans. Such statements are necessarily based upon a number of beliefs, assumptions, and opinions of management on the date the statements are made and are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected.  The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors should change, except as required by law. 

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

FOR MORE INFORMATION, CONTACT:

NioBay Metals Inc. Claude Dufresne, P.Eng. President & CEO Tel.: 514 866-6500 Email: cdufresne@niobaymetals.com www.niobaymetals.com Paradox Public Relations Tel: (514) 341-0408 or 1-866-460-0408 jfmeilleur@paradox-pr.ca

FAQ

What is the significance of NioBay's option agreement with Tectonic?

The agreement allows NioBay to acquire two niobium properties with promising exploration potential.

How much will NioBay pay for the Gouin Properties?

NioBay will make cash payments totaling $190,000 and has a $430,000 payment option, along with a $1.65 million work commitment.

What are the expected timelines for the Gouin Properties acquisition?

The option agreement is structured over six years, with initial payments due upon regulatory approval.

What is the strategic importance of the Gouin Properties to NioBay?

These properties are key to NioBay's vision of becoming a leader in green metals for a low carbon economy.

What mineral concentrations have been found at the Gouin Properties?

Recent assays showed Nb₂O₅ concentrations of up to 0.54% in discovered boulders.