Pistol Bay Sells Confederation Lake Properties to Trillium Gold

2020-11-24 / @thenewswire

(TheNewswire)

Vancouver, B.C. – TheNewswire - November 24, 2020 - Pistol Bay Mining Inc. (TSXV:PST); (Frankfurt-OQS2), (OTC:SLTFF) (“Pistol Bay” or the “Company”) is pleased to announce that it has signed a definitive asset purchase agreement (the “Agreement”) with Trillium Gold Mines Inc. (“Trillium”), dated November 22, 2020.

Pursuant to the terms and conditions of the Agreement, Trillium will acquire a 100% interest in certain Confederation Lake Properties (“Confederation Belt”), consisting of nearly 15,000 hectares, from Pistol Bay for consideration of $500,000 in cash and Trillium common shares valued at $1,250,000, based on the 5 day VWAP of the Trillium common shares 2 business days prior to the closing date. The completion of the transaction is subject to the approval of the TSX Venture Exchange.

Confederation Lake Belt Properties Being Sold

(1)Lucky 7, Fly and Moth Properties

The Lucky 7, Fly and Moth (“LFM”) properties cover an area of approximately 9,000 hectares and extend over an 18 kilometre stretch of the Confederation greenstone belt to within 1.5 km of the former producing South Bay zinc-copper-silver mine.

(2)Joy (Karas Lake, Gerry Lake, Mitchell) and Joy North Property

The more than 3,300 hectare Joy property covers over 13km of prospective felsic volcanics of the Confederation greenstone belt.

(3)Pakwash (North and East)

The 2,175 hectare Pakwash Lake project is located in the Cabin Bay Area of the Red Lake Mining District southeast of Great Bear Resources’ Dixie project.

Trillium, under the terms of the Agreement, is responsible to pay any option payments owing to the original vendors of the assets being sold, that become due after the closing date. However, Trillium shall not assume and shall have no obligation to pay, satisfy, discharge, perform or fulfill any liabilities or obligations relating to or arising in respect of the assets being sold prior to the Agreement.

Properties still owned by Pistol Bay

(1)Confederation Lake, Ontario

- Dixie 17-20

- Optioned 90% to Infinite Ore Corp (ILI.V)

- Outstanding Payments due to Pistol Bay is $30,000 and 500,000 ILI Shares (due February 7, 2021)

- Outstanding exploration to be done by ILI - $250,000 by February 7, 2020 and 300,000 by February 7, 2022

- Fredart / Copperload A

- Optioned 80% to Infinite Ore Corp (ILI.V)

- Outstanding Payments due to Pistol Bay is $70,000 (due June 15, 2021) 750,000 ILI Shares due June 15, 2021 and 1,000,000 ILI Shares due June 15, 2022

- Outstanding exploration to be done by ILI, $1,000,000 by June 15, 2023 (partial completed)

- Garnet / Arrow Zone – subject to the approval of the TSX Venture Exchange

- Optioned 80% to Infinite Ore Corp (ILI.V) – terms over a 3 year period from TSX Venture Exchange approval

- Outstanding Payments due to Pistol Bay is $225,000 and 4,000,000 ILI Shares

- Outstanding exploration to be done by ILI, $1,500,000

(2) Icefield Gold Project, British Columbia

(3) James Bay, Quebec

(4) Vanadium Project, Nevada

About Pistol Bay Mining Inc.

Pistol Bay Mining Inc. is a diversified Junior Canadian Mineral Exploration Company with a focus on zinc and base metal properties in North America. The company is also actively pursuing the right opportunity in other resources to enhance shareholders value. For additional information please visit the Company website at www.pistolbaymininginc.com or contact Charles Desjardins at pistolbaymining@gmail.com.

On Behalf of the Board of Directors

PISTOL BAY MINING INC.

Charles Desjardins,

President and Director

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:

Statements included in this announcement, including statements concerning of the Company’s plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.