Signal Gold Announces the Sale of the Tilt Cove Project to FireFly Metals for $4.0 Million in Total Compensation
Signal Gold has announced the sale of its Tilt Cove Project in Newfoundland to FireFly Metals for a total compensation of $4.0 million. The deal includes $570,000 in cash and FireFly shares valued at $2.5 million upon closing in mid-November 2024, plus a potential $1 million milestone payment tied to resource discovery. The milestone payment will trigger if FireFly announces a mineral resource of at least 500,000 gold equivalent ounces at a minimum grade of 1.0 g/t. The transaction allows Signal Gold to focus on advancing its Goldboro Project in Nova Scotia while maintaining upside exposure through FireFly shares.
Signal Gold ha annunciato la vendita del suo Tilt Cove Project nel Newfoundland a FireFly Metals per un compenso totale di 4,0 milioni di dollari. L'accordo prevede 570.000 dollari in contante e azioni FireFly del valore di 2,5 milioni di dollari al momento della chiusura a metà novembre 2024, oltre a un potenziale pagamento di 1 milione di dollari legato alla scoperta di risorse. Il pagamento di milestone si attiverà se FireFly annuncia una risorsa mineraria di almeno 500.000 once equivalenti d'oro con un grado minimo di 1,0 g/t. La transazione consente a Signal Gold di concentrarsi sullo sviluppo del suo Goldboro Project in Nuova Scozia, mantenendo però l'esposizione alla crescita attraverso le azioni di FireFly.
Signal Gold ha anunciado la venta de su Tilt Cove Project en Newfoundland a FireFly Metals por una compensación total de 4.0 millones de dólares. El acuerdo incluye 570,000 dólares en efectivo y acciones de FireFly valoradas en 2.5 millones de dólares al cierre a mediados de noviembre de 2024, más un posible pago de hito de 1 millón de dólares ligado al descubrimiento de recursos. El pago de hito se activará si FireFly anuncia un recurso mineral de al menos 500,000 onzas equivalentes de oro con un grado mínimo de 1.0 g/t. La transacción permite a Signal Gold centrarse en avanzar su Goldboro Project en Nueva Escocia mientras mantiene la exposición al alza a través de las acciones de FireFly.
Signal Gold는 뉴펀들랜드에 있는 Tilt Cove Project를 FireFly Metals에 총 400만 달러에 판매한다고 발표했습니다. 이 거래에는 현금 57만 달러와 2024년 11월 중순 종료 시 250만 달러에 평가된 FireFly의 주식이 포함되어 있으며, 자원 발견과 관련된 최대 100만 달러의 마일스톤 지급 가능성이 추가됩니다. FireFly가 최소 1.0 g/t의 등급에서 최소 500,000 금 등가 온스의 광물 자원을 발표하면 마일스톤 지급이 시작됩니다. 이 거래는 Signal Gold가 노바 스코시아에 있는 Goldboro Project의 개발에 집중할 수 있게 하면서 FireFly의 주식을 통해 하방 노출을 유지할 수 있게 합니다.
Signal Gold a annoncé la vente de son Tilt Cove Project à Terre-Neuve à FireFly Metals pour une compensation totale de 4,0 millions de dollars. L'accord comprend 570 000 dollars en espèces et des actions FireFly d'une valeur de 2,5 millions de dollars lors de la clôture à la mi-novembre 2024, ainsi qu'un potentiel paiement d'étape de 1 million de dollars lié à la découverte de ressources. Le paiement d'étape sera déclenché si FireFly annonce une ressource minérale d'au moins 500 000 onces équivalentes d'or avec une teneur minimale de 1,0 g/t. La transaction permet à Signal Gold de se concentrer sur l'avancement de son Goldboro Project en Nouvelle-Écosse tout en maintenant une exposition à la hausse grâce aux actions de FireFly.
Signal Gold hat den Verkauf seines Tilt Cove Project in Neufundland an FireFly Metals für eine Gesamtsumme von 4,0 Millionen Dollar bekannt gegeben. Das Geschäft umfasst 570.000 Dollar in bar sowie FireFly-Aktien im Wert von 2,5 Millionen Dollar bei Abschluss Mitte November 2024, zusätzlich zu einer möglichen Meilensteinzahlung von 1 Million Dollar, die an die Entdeckung von Ressourcen gebunden ist. Die Meilensteinzahlung wird ausgelöst, wenn FireFly eine mineralische Ressource von mindestens 500.000 Goldäquivalent-Unzen mit einer Mindestgrenze von 1,0 g/t ankündigt. Die Transaktion ermöglicht es Signal Gold, sich auf die Weiterentwicklung seines Goldboro Project in Nova Scotia zu konzentrieren, während sie gleichzeitig die Möglichkeit auf Kursgewinne durch FireFly-Aktien beibehält.
- Immediate cash injection of $570,000
- Receipt of FireFly shares valued at $2.5 million
- Potential additional $1 million milestone payment
- Strategic focus on core Goldboro Project development
- Divestment of significant land package (15,000 hectares)
- Loss of exploration potential in the Baie Verte Mining District
TORONTO, ON / ACCESSWIRE / November 4, 2024 / Signal Gold Inc. ("Signal Gold" or the "Company") (TSX:SGNL)(OTCQB:SGNLF) is pleased to announce that it has executed a share purchase agreement ("SPA") with FireFly Metals Ltd. ("FireFly") for the sale of the Company's Tilt Cove Project in Newfoundland. Under the SPA, FireFly will acquire
"We are excited to announce the sale of our Tilt Cove Project to FireFly Metals, who are well positioned to extract value from this prospective exploration-stage gold-copper project, located within the Baie Verte Mining District of Newfoundland. We believe there is tremendous potential at Tilt Cove, with approximately 15,000 hectares of prospective mineral lands and 35 kilometres of high-potential strike length including the Nugget Pond Horizon, and this transaction provide strong upside to our shareholders through our position in FireFly, while we focus on the advancement of the Goldboro Project in Nova Scotia."
~ Kevin Bullock, President and CEO, Signal Gold Inc.
ABOUT SIGNAL GOLD
Signal Gold is advancing the Goldboro Gold Project in Nova Scotia, a significant growth project subject to a positive Feasibility Study which demonstrates an approximately 11-year open pit life of mine with average gold production of 100,000 ounces per annum and an average diluted grade of 2.26 grams per tonne gold. (Please see the ‘NI 43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia' on January 11, 2022, for further details). The Goldboro Project has significant potential for further Mineral Resource expansion, particularly towards the west along strike and at depth, and the Company has consolidated 28,525 hectares (~285 km2) of prospective exploration land in the Goldboro Gold District.
On October 10, 2024, Signal Gold announced that it had entered into a definitive agreement to combine with NexGold Mining Corp.("NexGold") to create one of Canada's most advanced near-term gold developers. The combined entity will be focused on advancing NexGold's Goliath Gold Complex Project in Northern Ontario and Signal's Goldboro Project in the Goldboro Gold District in Nova Scotia. Pursuant to the definitive agreement, NexGold will acquire all the issued and outstanding common shares of Signal Gold in exchange for common shares of NexGold by way of a plan of arrangement.
This news release has been reviewed and approved by Kevin Bullock, P. Eng., President and CEO with Signal Gold Inc., a "Qualified Person", under National Instrument 43-101 Standard for Disclosure for Mineral Projects.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation, including, but not limited to the time of completion of the transaction, the receipt of the milestone payment, the performance of the Firefly shares, the advancement of the Goldboro Gold Project and the Feasibility Study and results thereof. Generally, forward-looking information 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 variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Signal Gold to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Signal Gold's annual information form for the year ended December 31, 2023, available on www.sedarplus.ca. Although Signal Gold has attempted to identify important factors, assumption and risks that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors, assumptions and risks that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Signal Gold does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
FOR ADDITIONAL INFORMATION CONTACT:
Signal Gold Inc. | Reseau ProMarket Inc. |
SOURCE: Signal Gold Inc.
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