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Lode Gold Signs Definitive Agreement to Execute Tax-Efficient Spin-Out, Creating Two Pure Play Companies

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Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) has announced that its wholly-owned subsidiary, Gold Orogen, has entered into a binding Definitive Agreement with Great Republic Mining (CSE: GRM) for a Reverse Take Over (RTO) transaction. This agreement, signed on October 21, 2024, will result in a tax-efficient spin-out, creating two pure play companies.

The new company, Gold Orogen, will have assets in Yukon and Atlantic Canada, focusing on exploration. It will launch with over $3 million in funding, with plans to raise an additional $1.5 million. Planned work programs include VTEM, SQUIDT, Soil Analysis, Geological Mapping, Trenching, and Drilling in the next 12 months.

CEO Wendy T. Chan stated that this milestone aligns with their business plan, creating two pure play companies to unlock shareholder value. The company has also initiated work programs in Yukon and New Brunswick following recent financings totaling over $4 million.

Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) ha annunciato che la sua controllata interamente posseduta, Gold Orogen, ha stipulato un Accordo Definitivo vincolante con Great Republic Mining (CSE: GRM) per una transazione di Reverse Take Over (RTO). Questo accordo, firmato il 21 ottobre 2024, darà vita a uno spin-off fiscalmente vantaggioso, creando due società indipendenti.

La nuova società, Gold Orogen, avrà attivi nel Yukon e in Canada Atlantico, concentrandosi sull'esplorazione. Inizierà con oltre 3 milioni di dollari in finanziamenti, con piani per raccogliere ulteriori 1,5 milioni di dollari. I programmi di lavoro previsti includono VTEM, SQUIDT, Analisi del suolo, Mappatura geologica, Scavi e perforazioni nei prossimi 12 mesi.

Il CEO Wendy T. Chan ha dichiarato che questo traguardo è in linea con il loro piano aziendale, creando due società indipendenti per sbloccare il valore per gli azionisti. L'azienda ha anche avviato programmi di lavoro nello Yukon e nel New Brunswick dopo recenti finanziamenti per un totale di oltre 4 milioni di dollari.

Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) ha anunciado que su subsidiaria de propiedad total, Gold Orogen, ha firmado un Acuerdo Definitivo vinculante con Great Republic Mining (CSE: GRM) para una transacción de Reverse Take Over (RTO). Este acuerdo, firmado el 21 de octubre de 2024, resultará en un spin-off fiscalmente eficiente, creando dos empresas independientes.

La nueva empresa, Gold Orogen, tendrá activos en Yukón y Canadá Atlántico, enfocándose en la exploración. Lanzará con más de 3 millones de dólares en financiamiento, con planes de recaudar un millón y medio de dólares adicionales. Los programas de trabajo planificados incluyen VTEM, SQUIDT, Análisis de Suelo, Mapeo Geológico, Zanjas y Perforaciones en los próximos 12 meses.

La CEO Wendy T. Chan declaró que este hito se alinea con su plan de negocios, creando dos empresas independientes para . La empresa también ha iniciado programas de trabajo en Yukón y Nuevo Brunswick después de financiamientos recientes que totalizan más de 4 millones de dólares.

Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF)는 그들의 완전 자회사인 Gold Orogen이 Great Republic Mining (CSE: GRM)과 구속력 있는 최종 계약을 체결하여 역인수 거래(RTO)를 진행한다고 발표했습니다. 이 계약은 2024년 10월 21일에 서명되었으며, 세금 효율적인 스핀아웃을 통해 두 개의 독립적인 회사를 생성합니다.

새로운 회사인 Gold Orogen은 유콘 및 대서양 캐나다에 자산을 보유하며 탐사에 집중할 것입니다. 300만 달러 이상의 자금으로 시작하며, 추가로 150만 달러를 모집할 계획입니다. 계획된 작업 프로그램에는 VTEM, SQUIDT, 토양 분석, 지질 조사, 발굴 및 향후 12개월 내에 시추가 포함됩니다.

CEO Wendy T. Chan은 이 이정표가 주주 가치를 실현하는 두 개의 독립 회사를 창출하는 사업 계획과 일치한다고 밝혔습니다. 또한 회사는 최근 400만 달러 이상의 자금 조달 이후 유콘과 뉴브런즈윅에서 작업 프로그램을 시작했습니다.

Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) a annoncé que sa filiale à part entière, Gold Orogen, a signé un accord définitif contraignant avec Great Republic Mining (CSE: GRM) pour une transaction de Reverse Take Over (RTO). Cet accord, signé le 21 octobre 2024, aboutira à un spin-off fiscalement efficace, créant deux sociétés indépendantes.

La nouvelle société, Gold Orogen, aura des actifs dans le Yukon et au Canada Atlantique, en se concentrant sur l'exploration. Elle commencera avec plus de 3 millions de dollars de financement, avec des plans pour lever 1,5 million de dollars supplémentaires. Les programmes de travail prévus comprennent VTEM, SQUIDT, analyse des sols, cartographie géologique, tranchées et forages au cours des 12 prochains mois.

La PDG Wendy T. Chan a déclaré que cette étape est en accord avec leur plan d'affaires, créant deux sociétés indépendantes pour débloquer la valeur pour les actionnaires. L'entreprise a également lancé des programmes de travail au Yukon et au Nouveau-Brunswick après un financement récent totalisant plus de 4 millions de dollars.

Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) hat angekündigt, dass ihre hundertprozentige Tochtergesellschaft, Gold Orogen, eine verbindliche endgültige Vereinbarung mit Great Republic Mining (CSE: GRM) über eine Reverse Take Over (RTO)-Transaktion getroffen hat. Diese Vereinbarung, die am 21. Oktober 2024 unterzeichnet wurde, wird zu einem steuerlich effizienten Spin-off führen, wodurch zwei unabhängige Unternehmen entstehen.

Das neue Unternehmen, Gold Orogen, wird Vermögenswerte im Yukon und in Atlantik-Kanada besitzen und sich auf die Exploration konzentrieren. Es wird mit über 3 Millionen Dollar an Finanzierung starten und plant, weitere 1,5 Millionen Dollar zu akquirieren. Geplante Arbeitsprogramme umfassen VTEM, SQUIDT, Bodenanalysen, geologische Kartierung, Erdarbeiten und Bohrungen in den nächsten 12 Monaten.

CEO Wendy T. Chan erklärte, dass dieser Meilenstein mit ihrem Geschäftsplan übereinstimmt, um Wert für die Aktionäre zu schaffen. Das Unternehmen hat auch Arbeitsprogramme im Yukon und New Brunswick initiiert, nachdem kürzlich Finanzierungen in Höhe von über 4 Millionen Dollar abgeschlossen wurden.

Positive
  • Tax-efficient spin-out creating two pure play companies
  • Gold Orogen launching with over $3 million in funding
  • Plans to raise an additional $1.5 million
  • Assets in two highly prospective areas: Yukon and Atlantic Canada
  • Comprehensive work programs planned for the next 12 months
  • Recent financings raised over $4 million
Negative
  • None.

Toronto, Ontario--(Newsfile Corp. - October 22, 2024) - Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) ("Lode Gold " or the "Company") is pleased to announce its wholly-owned subsidiary, ("1475039 B.C. Ltd." or "Gold Orogen") has entered into a binding Definitive Agreement (DA) on October 21, 2024 to acquire Great Republic Mining ("GRM", "Great Republic" or CSE: GRM), pursuant to which the GRM and the Company's subsidiary propose to complete a Reverse Take Over (RTO) transaction pursuant to which GRM will acquire all of the issued and outstanding shares of the Company's subsidiary. It will be a tax efficient spin out: shareholders of Lode Gold will receive shares of Gold Orogen.

Transaction details, terms, and condition of the deal remain the same as in the Letter of Intent previously announced and can be read on its August 27th, 2024 news release.

The new company, Gold Orogen will have assets in two highly prospective areas in Canada: Yukon and Atlantic Canada. It will be a focused exploration pure play company. It will launch with funding of over $3 million dollars, with a plan to raise an additional $1.5 million. Work programs being executed or planned include: VTEM, SQUIDT, Soil Analysis, Geological Mapping, Trenching and Drilling in the next 12 months.

Wendy T. Chan, CEO of Lode Gold states, "We are very glad to have achieved yet another milestone, thanks to the hard work of our team. As promised in our business plan, we have now finalized definite spin out plans. It will be a tax efficient plan of arrangement. We will create two pure play companies to unlock value for shareholders. We have also initiated work programs in Yukon and New Brunswick, post raising over $4 million in the last two financings."

About Lode Gold

Lode Gold (TSXV: LOD) is an exploration and development company with projects in highly prospective and safe mining jurisdictions in Canada and the United States.

Its Golden Culvert and WIN Projects in Yukon, covering 99.5 km2 across a 27-km strike length, are situated in a district-scale, high-grade-gold-mineralized trend within the southern portion of the Tombstone Gold Belt. Gold deposits and occurrences within the Belt include Fort Knox, Pogo, Brewery Creek and Dublin Gulch, and Snowline Gold. A NI 43-101 technical report entitled "Technical Report on the WIN-Golden Culvert Property for Lode Gold" with an effective date of May 15, 2024, summarizing the work to date on these properties is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.lode-gold.com).

In New Brunswick, Lode Gold has created one of the largest land packages with a 42km strike within 420km2. Its McIntyre Brook Project, New Brunswick, covering 111 km2 and a 17-km strike length in the emerging Appalachian/Iapetus Gold Belt, is surrounded by Puma Exploration's Williams Brook Project (5.55 g/t Au over 50m)1 and is hosted by orogenic rocks of similar age and structure as New Found Gold's Queensway Project. The Fancamp's Riley Brook is a 309 km2 package covering a 25 km strike of Wapske formation with its numerous felsic units. Previous exploration efforts have focused on just VMS-style mineralization hosted in the felsic intrusions, and mostly focused on the base metals - the Company is the first to focus on and assay for gold. This transaction will close upon Exchange's acceptance.

The Company is also advancing its Fremont Gold development project in the historic Mother Lode Gold Belt of California where 50,000,000 oz of gold has been produced. Fremont, located 500km north of Equinox Gold's Castle Mountain and Mesquite mines, has a Preliminary Economic Assessment ("PEA") with an after-tax NPV (5%) of USD $217M, a 21% IRR, 11-year LOM, averaging 118,000 Oz per annum at USD $1,750 gold. A sensitivity to the March 31, 2023 PEA at USD $2,000/oz gold gives an after-tax NPV (5%) of USD $370M and a 31% IRR over an 11-year LOM. The project hosts an NI 43-101 resource of 1.16 MOz at 1.90 g/t Au within 19.0 MT Indicated and 2.02 MOz at 2.22 g/t Au within 28.3 MT Inferred. The MRE evaluates only 1.4 km of the 4 km strike length of the Fremont property which features five gold-mineralized zones. Significantly, three step-out holes at depth hit the mineralized structure, typical of orogenic deposits that often occur at depth. Fremont is located on 3,351 acres of 100% owned private land in Mariposa, the original Gold Rush County, and is 1.5 hours from Fresno, California. The property has year-round road access and is close to airports and rail.

Please refer to the Fremont Gold project NI 43-101 PEA technical report dated March 31, 2023, which is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.lode-gold.com). The PEA technical report has been reviewed and approved by independent "Qualified Persons" Eugene Puritch, P.Eng., FEC, CET, and Andrew Bradfield, P.Eng. both of P&E, and Travis Manning, P.E. of KCA.

QUALIFIED PERSON STATEMENT

The scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, Director, BSc (Hons) (Economic Geology - UCT), FAusIMM, and who is a "qualified person" as defined by NI-43-101.

ON BEHALF OF THE COMPANY

Wendy T. Chan, CEO & Director

Information Contact

Winfield Ding
CFO
info@lode-gold.com
+1-416-320-4388

Kevin Shum
Investor Relations
kevin@lode-gold.com
+1 (647) 725-3888 ext. 702

Cautionary Note Related to this News Release and Figures

This news release contains information about adjacent properties on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company's properties.

Cautionary Statement Regarding Forward-Looking Information

Neither the 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.

This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements with respect to the completion of the transaction and the timing thereof, the expected benefits of the transaction to shareholders of the Company, the structure, terms and conditions of the transaction and the execution of a definitive agreement, the timing of submission to the CSE and TSXV, Gold Orogen raising an additional $1,500,000 and the anticipated use of proceeds. Forward-Looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect", "potential", "target", "budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof.

Forward-Looking statements are based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which the Company operates, are inherently subject to significant operational, economic, and competitive uncertainties, risks and contingencies. These include assumptions regarding, among other things: that the Company and GRM will be able to negotiate the definitive agreement on the terms and within the time frame expected, that the Company and GRM will be able to make submissions to the CSE and TSXV within the time frame expected, that the Company and GRM will be able to obtain shareholder approval for the transaction, that the Company and GRM will be able to obtain necessary third party and regulatory approvals required for the transaction, if completed, that the transaction will provide the expected benefits to the Company and its shareholders.

There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include adverse market conditions, general economic, market or business risks, unanticipated costs, the failure of the Company and GRM to negotiate the definitive agreement on the terms and conditions and within the timeframe expected, the failure of the Company and GRM to make submissions to the CSE and TSXV within the timeframe expected, the failure of the Company and GRM to obtain shareholder approval for the transaction, the failure of the Company and GRM to obtain all necessary approvals for the transaction, and r other risks detailed from time to time in the filings made by the Company with securities regulators, including those described under the heading "Risks and Uncertainties" in the Company's most recently filed MD&A. The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law.


1 See Puma Exploration Inc.'s news release dated September 15, 2021.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227250

FAQ

What is the purpose of Lode Gold Resources' (SBMIF) Definitive Agreement with Great Republic Mining?

The Definitive Agreement is for a Reverse Take Over (RTO) transaction, resulting in a tax-efficient spin-out that will create two pure play companies, unlocking value for shareholders.

How much initial funding will Gold Orogen have after the spin-out from Lode Gold Resources (SBMIF)?

Gold Orogen will launch with over $3 million in funding, with plans to raise an additional $1.5 million.

What work programs does Gold Orogen plan to execute in the next 12 months?

Gold Orogen plans to execute VTEM, SQUIDT, Soil Analysis, Geological Mapping, Trenching, and Drilling in the next 12 months in their Yukon and Atlantic Canada assets.

How much did Lode Gold Resources (SBMIF) raise in its recent financings?

Lode Gold Resources raised over $4 million in its last two financings.

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