Trifecta Gold Receives Final Approval for Tombstone Belt Transaction

Rhea-AI Summary

Trifecta Gold has secured final approval from the TSX Venture Exchange to acquire up to 100% interest in the Mt. Hinton gold-silver project and 10 other projects in Yukon's Tombstone Gold Belt. These 11 properties are known for their reduced intrusion-related gold systems, similar to Snowline Gold's Valley discovery. Trifecta can acquire a 70% interest by spending $6 million on exploration by 2027 and issuing 305,000 shares to Strategic Metals. A further 30% interest can be obtained by issuing additional shares to Strategic, not exceeding 8.92 million shares. If only the First Option is exercised, the parties will form a joint venture to explore the properties. The portfolio spans approximately 30,000 hectares.

Positive

• Final approval from TSX Venture Exchange for acquiring up to 100% interest in 11 gold projects.
• Potential to secure 100% interest in Mt. Hinton and other projects by fulfilling exploration expenditure and share issuance commitments.
• Mt. Hinton and other projects located in highly prospective Tombstone Gold Belt.
• Option to acquire remaining 30% interest by issuing up to 8.92 million shares.
• Portfolio covers approximately 30,000 hectares in Yukon.

Negative

• Requirement to incur $6 million in exploration expenditures by 2027.
• Issuance of up to 305,000 shares initially and potentially 8.92 million shares, leading to shareholder dilution.

Highlights:

• Trifecta Gold secures option to acquire up to 100% interest in Mt Hinton gold-silver project, next to Hecla's Keno Hill Mines, as well as 10 other highly prospective projects.

• All 11 projects show characteristics of reduced intrusion related gold systems, like Snowline Gold's recent Valley discovery.

VANCOUVER, BC / ACCESSWIRE / July 9, 2024 / Trifecta Gold Ltd. (TSXV:TG)(OTCQB:TRRFF) ("Trifecta" or the "Company") is pleased to announce that further to its March 1^st, 2024 news release, the Company has received final approval from the TSX Venture Exchange to acquire up to 100% of Mt. Hinton and 10 other highly prospective, intrusion-related gold projects located in Yukon's Tombstone Gold Belt. Under a two stage earn-in agreement with Strategic Metals Ltd. ("Strategic"), Trifecta can acquire up to a 100% interest in all 11 properties.

Tombstone Gold Belt

Extending for more than 1,000 km from Alaska into Yukon, the Tombstone Gold Belt hosts many large Reduced Intrusion-Related Gold System (RIRGS) deposits such as Fort Knox and Pogo in Alaska (>14 million oz), Eagle and Olive in Yukon (>4 million oz) and the past-producing Brewery Creek Mine, also in Yukon. Recent discoveries including Snowline Gold's Tier 1 Valley discovery, Sitka Gold's RC deposit, Banyan Gold's AurMac deposits and Victoria Gold's Raven deposit have drawn renewed exploration interest to the belt (>17 million new ounces added to resources in the belt since May 2020).

These gold systems are characterized by sheeted, auriferous quartz veins forming in the carapace zones of Cretaceous-age plutons. They have a characteristic geochemical signature of Au-Bi-Te±W within and surrounding the intrusion, and a characteristic geophysical signature of a magnetic low (ie. reduced) together with a coincident conductivity low. Moving outward from the intrusions, Au-As veins are common with Ag-Pb-Zn veins further out.

Option Terms

Trifecta can acquire an initial 70% interest in the properties (the "First Option") by incurring aggregate exploration expenditures of $6 million by December 31, 2027, with $500,000 to be incurred by December 31, 2024, and issuing 305,000 shares to Strategic. Following the exercise of the First Option, Strategic will retain a one percent (1%) net smelter return royalty interest in the properties. (These 305,000 have been issued to Strategic and are subject to a hold period in Canada until November 10, 2024.)

Trifecta can acquire the remaining 30% interest in the properties (the "Second Option") by issuing additional Trifecta shares to Strategic equal to 9.99% of the then outstanding Trifecta share capital at any time after the exercise of the First Option and prior to February 28, 2028, which number of shares to be issued to Strategic will not include any shares of Trifecta then held by Strategic but will be subject to a maximum number of 8,920,000 shares of Trifecta. Following the exercise of the Second Option, Strategic will retain an additional one percent (1%) net smelter return royalty interest. Trifecta can purchase the second royalty interest from Strategic for the payment of 1,500 ounces of gold or the cash equivalent.

If Trifecta exercises the First Option only, the parties shall form a joint venture to further explore and develop the properties.

Project Portfolio

The optioned portfolio covers approximately 30,000 hectares of highly prospective land within the Yukon portion of the Tombstone Gold Belt across 11 properties - namely, Mt. Hinton, Rye, Lance, Liam, Lois, Leroy, Luke, Leah, Lisa, Husky and Naws. The locations of and the properties are available on the Company's website.

About Trifecta Gold Ltd.

Trifecta is a Canadian-based precious metals exploration company dedicated to increasing shareholder value through the discovery and development of 100% held gold projects in Yukon and Nevada. Initial drilling at its Yuge Gold Project, located in northern Nevada, has identified multiple broad zones of gold mineralization near historical high-grade mines. The Company's Eureka Project hosts an 8 x 2.5 kilometre belt of surface showings and anomalous gold-in-soil that straddle the headwaters of two of the most productive placer creeks in Yukon's southern Klondike Goldfields. The Company's Treble Project covers a large hydrothermal system, located midway between Western Copper and Gold Corporation's Casino Deposit, the largest copper and gold deposit in the Yukon, and Rockhaven Resources Ltd.'s Klaza Deposit, a high-grade gold-silver deposit.

ON BEHALF OF THE BOARD

"Richard Drechsler"

President and CEO

For further information concerning Trifecta or its various exploration projects please visit www.trifectagold.com or contact:

Corporate Information Trifecta Gold Ltd. Richard Drechsler President and CEO Tel: (604) 687-2522

This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.

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 news release.

SOURCE: Trifecta Gold Ltd.

View the original press release on accesswire.com

FAQ

What projects has Trifecta Gold received approval to acquire?

Trifecta Gold has received approval to acquire up to 100% interest in the Mt. Hinton gold-silver project and 10 other projects in Yukon's Tombstone Gold Belt.

How much does Trifecta Gold need to spend on exploration for the Mt. Hinton project?

Trifecta Gold needs to spend $6 million on exploration by December 31, 2027, to acquire a 70% interest in the properties.

What is the stock symbol for Trifecta Gold?

The stock symbol for Trifecta Gold is 'TRRFF'.

How many shares will Trifecta Gold issue to Strategic Metals for the first option?

Trifecta Gold will issue 305,000 shares to Strategic Metals for the first option.

What are the terms for acquiring the remaining 30% interest in the properties?

Trifecta Gold can acquire the remaining 30% interest by issuing additional shares to Strategic Metals, not exceeding 8.92 million shares.

What will happen if Trifecta Gold only exercises the First Option?

If Trifecta Gold only exercises the First Option, Trifecta and Strategic Metals will form a joint venture to explore and develop the properties.