Vior Options its Mosseau Gold Project to Harvest Gold

Rhea-AI Summary

VIOR Inc. (Vior) (TSX-V:VIO)(OTCQB:VIORF)(FRANKFURT:VL51) signs definitive agreement with Harvest Gold Corp. for Mosseau Gold Project

Insights

Financial Analyst

The agreement between VIOR Inc. and Harvest Gold Corp. regarding the Mosseau Gold Project is significant from an investment perspective, particularly within the mining and precious metals sector. The terms of the agreement suggest a strategic move by VIOR to leverage its assets, while potentially focusing on its flagship projects. Harvest Gold's commitment to invest and the structured payment plan indicate a progressive development and exploration strategy for the project.

Investors in both companies should consider the potential upside of the Mosseau Gold Project's exploration results against the financial commitments and obligations outlined. The proximity to Windfall Mining Group's deposit could hint at geological promise, which if realized, may lead to a revaluation of the involved companies' stock prices. The deal structure, including cash, share issuance, and work commitments, reflects a shared risk and benefit model that could align the interests of both companies' shareholders.

However, the agreement also carries risks, such as regulatory approval contingencies and the inherent uncertainties of mineral exploration. The stipulated joint venture option if Harvest Gold opts not to acquire the full interest, and the NSR royalty to VIOR, provide long-term financial implications that need to be factored into any investment analysis. It's also worth noting the potential dilution effect of issuing 12 million common shares to VIOR shareholders.

Mining Industry Expert

The Mosseau Gold Project's agreement between VIOR Inc. and Harvest Gold Corp. is a notable development for stakeholders in the mining industry. The structured deal over a 4 1/2-year period with escalating work commitments and payments reflects a phased exploration and development approach. This phased approach is common in the industry as it allows for the gradual assessment of the project's viability and mitigates upfront risk.

For industry observers, the deal is an example of how junior mining companies can collaborate to advance projects that may otherwise remain underexploited due to resource constraints. VIOR's decision to partner with Harvest Gold allows it to focus on its flagship projects while still retaining upside potential through the NSR royalty and potential joint venture. The reference to a 43-101 compliant mineral resource indicates a commitment to industry-standard reporting and transparency, which is critical for investor confidence.

The potential long-term impact of the project, if successful, could be significant for the local economy and employment, as well as for the broader mining sector in Quebec. However, the success of such projects is highly speculative and contingent on numerous factors, including geological findings, gold market conditions, and operational execution.

Geologist

From a geological standpoint, the Mosseau Gold Project's location near Lebel-sur-Quévillon, Quebec, and in proximity to Windfall Mining Group's gold deposit, is promising. The area is known for its mineral-rich geology, and the 17.7km gold-bearing structure within the project's claims is an encouraging sign for potential gold discovery.

The structured agreement with Harvest Gold Corp. indicates a systematic exploration plan that will likely include geological surveys, drilling, and resource estimation. The commitment to a 43-101 compliant mineral resource publication is crucial, as it will provide a validated assessment of the project's mineral potential and serve as a key milestone for both VIOR and Harvest Gold.

It is imperative to consider that exploration is a high-risk endeavor, with many projects failing to advance to production. Nonetheless, the strategic partnership and phased investment could mitigate some of the financial risks and allow for a more thorough exploration of the Mosseau Gold Project's potential.

MONTREAL, QC / ACCESSWIRE / December 18, 2023 / VIOR Inc. (Vior or the Corporation ), (TSX-V:VIO)(OTCQB:VIORF)(FRANKFURT:VL51) is pleased to announce that it has executed a definitive agreement (the "Agreement") with Harvest Gold Corp. ("Harvest")., for Vior's Mosseau Gold Project (the "Project"), located approximately 70 kilometres west of Windfall Mining Group's Windfall gold deposit, near Lebel-sur-Quévillon, Quebec. The Project consists of 147 claims encompassing over 72 sq km and includes a 17.7km long gold-bearing structure.

The Agreement outlines the terms and conditions between Vior and Harvest, providing Harvest with the right to acquire up to a 100% undivided interest in the Project. This Agreement will be subject to receipt of all regulatory approvals, including acceptance and approval by the TSX Venture Exchange.

Agreement Terms and Highlights

Harvest will have the option to acquire up to a 100% undivided interest in the Project over a 4 1/2‑year period by completing the following terms and conditions:

Option Terms

	Payment
Deadline	Cash(1)	Common Shares	Work Commitment(2)	Harvest Interest Earned(1) (4)
Within three (3) business days of regulatory approval	$50,000	2,000,000	Nil	Nil
Earlier of (i) the completion of a minimum $500,000 financing; or (ii) February 28, 2024	$50,000	2,000,000	Nil	Nil
On or before December 31, 2024	$100,000	2,000,000	$250,000	Nil
On or before December 31, 2025	$100,000	2,000,000	$1,250,000	Nil
On or before December 31, 2026	$100,000	2,000,000	Nil	Nil
On or before December 31, 2027	$100,000	2,000,000	$1,500,000	80%(3)
If Harvest determines to acquire a 100% interest, on or before June 30, 2028	$1,500,000	Nil	Nil	100%
Total:	$2,000,000	12,000,000	$3,000,000	100%

Notes:

(1) All dollar amounts referred to are stated in Canadian Dollars.

(2) All work in excess of the yearly minimum amounts will be applied to the subsequent year's Work Commitment.

(3) Subject to a 1% NSR royalty to Vior, of which 0.5% may be repurchased by Harvest Gold for $1,000,000 anytime after the publication of a 43-101 compliant mineral resource.

(4) If Harvest Gold does not elect to earn a 100% interest, either by failing to complete the required $1,500,000 payment (on or before June 30, 2028), or by notifying Vior in writing of its intent prior to such deadline, Harvest Gold and Vior will form a Joint Venture whereby Harvest Gold and Vior will respectively hold an undivided 80% and 20% interest. Thereafter, Harvest Gold and Vior will each fund all work expenditures in proportion to their respective interests in the Project and, if either party fails to pay its share of funding, a standard dilution calculation will apply.

Mark Fedosiewich, President and CEO of Vior, commented: "We are very pleased to announce this Agreement with an experienced, quality partner like Harvest Gold, who will ensure that the Mosseau Project receives the attention it deserves to fully uncover its gold potential. While Mosseau holds much exploration prospectivity, it has not been given the exploration commitment required to fully realize its potential, due to Vior's focus and efforts at our flagship Belleterre Gold and Skyfall Nickel Projects. This partnership ensures that the Mosseau Project is explored and developed, allowing Vior shareholders to benefit from the potential discovery of new gold deposits."

Qualified Person

The technical content disclosed in this press release was reviewed and approved by Laurent Eustache, Executive Vice-President for VIOR and Qualified Person as per NI 43-101.

About Vior

Vior is a junior mineral exploration corporation based in Quebec, whose corporate strategy is to generate, explore, and develop high quality projects in proven and favourable mining jurisdictions in North America. Through the years, Vior's management and technical teams have demonstrated their ability to discover several gold deposits and many high-quality mineral prospects. Vior is rapidly advancing two district-scale projects in Quebec, which include its flagship Belleterre Gold Project and Skyfall Nickel Project, along with several other promising mineral properties.

For further information, please contact:

Mark Fedosiewich		Laurent Eustache
President and CEO		Executive Vice-President
613-898-5052		514-442-7707
mfedosiewich@vior.ca		leustache@vior.ca
www.vior.ca
SEDAR: Vior Inc.

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.

Forward-Looking Statements

This news release contains forward-looking statements. All statements, other than of historical facts, that address activities, events or developments that the Corporation believes, expects or anticipates will or may occur in the future including, without limitation, the planned exploration program on the Belleterre project, the expected positive exploration results, the timing of the exploration results, the ability of the Corporation to continue with the exploration program, the availability of the required funds to continue with the exploration and the approval from the Ministère de l'énergie et des ressources naturelle ("MERN") of the request for abandonment of the two mining concessions filed by 9293‑0122 Québec Inc. are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "to earn", "to have', "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Corporation's ability to control or predict, that may cause the actual results of the Corporation to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to meet expected, estimated or planned exploration expenditures, the possibility that future exploration results will not be consistent with the Corporation's expectations, general business and economic conditions, changes in world gold markets, sufficient labour and equipment being available, changes in laws and permitting requirements, unanticipated weather changes, title disputes and claims, environmental risks, the refusal by the MERN to approve the request for abandonment of the two mining concessions held by 9293‑0122 Québec Inc. as well as those risks identified in the Corporation's annual Management's Discussion and Analysis. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described and accordingly, readers should not place undue reliance on forward-looking statements. Although the Corporation has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Corporation does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law

SOURCE: Vior Inc.

View the original press release on accesswire.com

FAQ

What is the recent announcement made by VIOR Inc. (Vior) (TSX-V:VIO)(OTCQB:VIORF)(FRANKFURT:VL51)?

Vior has executed a definitive agreement with Harvest Gold Corp. for Vior's Mosseau Gold Project.

Where is the Mosseau Gold Project located?

The Mosseau Gold Project is located approximately 70 kilometers west of Windfall Mining Group's Windfall gold deposit, near Lebel-sur-Quévillon, Quebec.

What are the terms and conditions of the agreement between Vior and Harvest Gold Corp.?

The agreement provides Harvest with the right to acquire up to a 100% undivided interest in the Mosseau Gold Project.

Who is the President and CEO of Vior?

Mark Fedosiewich is the President and CEO of Vior.

Who reviewed and approved the technical content disclosed in the press release?

Laurent Eustache, Executive Vice-President for VIOR, and Qualified Person as per NI 43-101, reviewed and approved the technical content disclosed in the press release.