Vancouver, British Columbia, March 17, 2021 – Gold Line Resources Ltd. (TSX-V: GLDL) (“Gold Line” or the “Company”) and EMX Royalty Corp. (NYSE American and TSX-V: EMX) (“EMX”) are pleased to announce that they have entered into a definitive agreement (the “Agreement”) with Agnico Eagle Mines Limited (NYSE and TSX: AEM; “Agnico”) pursuant to which Gold Line will acquire a 100% interest in Agnico’s Oijärvi Gold Project located in central Finland and the Solvik Gold Project located in southern Sweden (collectively, the “Projects”) for an aggregate purchase price of US$10 million comprised of cash and shares of each of Gold Line and EMX (the “Transaction”). Agnico will retain a 2% net smelter return (“NSR”) royalty on the Projects, 1% of which may be purchased at any time by EMX for US$1 million.
Adam Cegielski, President, CEO and Director of Gold Line comments, “These highly prospective gold projects have returned promising exploration results in the past and we see significant potential to expand the historical resource at Oijärvi and make new gold discoveries. We have already identified several areas to target for immediate exploration and look forward to working closely with our partners at EMX towards unlocking value from the Projects.”
David M. Cole, President, CEO and Director of EMX comments, “We are pleased to further our strategic relationship with Gold Line. These advanced projects enhance Gold Line’s value proposition and provide EMX with additional royalty exposure in two emerging gold belts.”
- Gold Line to acquire 100% ownership of two advanced exploration projects: The acquisition of two advanced stage gold exploration projects in Finland and Sweden will augment and expand Gold Line’s existing portfolio in the Nordic region. Gold Line and EMX already have active, multi-asset exploration programs underway in the Gold Line Belt region of northern Sweden. The Transaction will result in Gold Line acquiring a 100% ownership interest in these Projects, and EMX will gain additional royalty exposure in two emerging gold belts
- Existing resource base with strong expansion and discovery potential: The Oijärvi Gold Project contains the drill defined Kylmäkangas deposit, with a historical inferred mineral resource of 1.89 million tonnes (Mt) grading 4.11 grams per tonne (g/t) gold (Au) for 250,000 oz Au and 31.11 g/t silver (Ag) for 1,896,000 oz Ag.1 The mineralized system remains open for expansion at depth and along strike of the 1.5 kilometer (km) mineralized trend of known mineralization.
In addition to the Kylmäkangas deposit, reconnaissance drilling by Agnico has identified additional zones of mineralization both along trend and as parallel zones of mineralization elsewhere on the Oijärvi Gold Project. Several of these peripheral targets merit follow-up.
- Novel grassroots discovery in Southern Sweden: The Solvik Gold Project is a novel discovery of quartz vein and shear zone-hosted gold mineralization in southern Sweden, in an area that has seen little historical gold exploration. Five key areas at Solvik contain drill defined zones of mineralization, with multiple untested targets elsewhere on the property, although no mineral resources have been reported at Solvik.
- Significant technical database to support a renewed exploration focus: 335 holes have been drilled to date across the Projects for a total of 60,218 meters (m). Historical drill intercepts include 22.6 g/t of gold and 126.3 g/t of silver over 11.0 m (estimated true width) at the Oijärvi Gold Project and 2.50 g/t Au over 19.4 m (estimated true width) at the Solvik Gold Project.2
- Gold Line and EMX to expand strategic partnership: EMX will receive additional shares in Gold Line that will increase EMX’s ownership position. Gold Line will continue to work closely with EMX as its exploration partner in the region and have already commenced planning to expand Gold Line’s 2021 exploration program to incorporate several high priority opportunities identified on the Projects.
Oijärvi Gold Project
The Oijärvi Gold Project is a 1,641 hectare advanced exploration project located approximately 350 km south of Agnico’s Kittila Mine and 85 km east of the city of Kemi, Finland. The property covers a late Archean-age greenstone belt known as the Oijärvi Greenstone Belt, similar to those found elsewhere in Finland and in the Canadian Shield, that hosts several gold-bearing zones within the project area.
A total of 292 holes have been drilled to date across the project for a total of 51,854 m. Several holes have intersected significant gold values over large thicknesses, including 22.6 g/t Au and 126.3 g/t Ag over 11.0m (estimated true width). Mineralization is developed in and around swarms of orogenic-style quartz veins associated with quartz-feldspar porphyry intrusions, and with disseminated sulfides in sediments, the latter style of mineralization only being recently recognized in the district.
The project contains the drill defined Kylmäkangas deposit, which comprises a historical inferred mineral resource of 1.89 Mt grading 4.11 g/t Au for 250,000 oz Au and 31.11 g/t Ag for 1,896,000 oz Ag. The mineralized system remains open at depth and along strike towards southwest and northeast. A qualified person has not done sufficient work to classify the historical resource estimate discussed above as a current mineral resource and Gold Line is not treating the historical estimate as a current mineral resource. Significant data compilation, re-drilling, re-sampling and data verification may be required by a qualified person before the historical estimate can be classified as a current mineral resource. The historical resource estimate is presented only for the purpose of describing the extent of gold mineralization and to outline the exploration potential. This historical resource estimate should not be relied upon.
Reconnaissance drilling 1.8 km to the southwest of the Kylmäkangas deposit intersected gold mineralization in the same stratigraphic position as Kylmäkangas, with little to no drilling in between. The sediment-hosted gold mineralization described above was intercepted in drill hole SAR09001 to the south of the main Kylmäkangas zone. These targets are expected to be prioritized by Gold Line for follow-up drilling.
Solvik Gold Project
The Solvik Gold Project is a 9,240 hectare advanced exploration project located approximately 16 km south from past producing Harnäs gold mine in south western Sweden. Gold mineralization at Solvik occurs in quartz veins and breccias developed along deformation zones, and in quartz-sericite altered host rocks. Deformation zones mapped and documented by Agnico’s work at Solvik total over 55 km in cumulative strike length, which represents considerable upside exploration potential.
A total of 43 holes have been drilled to date across the project for a total of 8,364 m. Several holes have intersected gold mineralization with the best intercepts being 2.50 g/t Au over 19.4 m and 2.71 g/t Au over 8.5 m (estimated true widths). Over 100 channel samples from outcrops and boulders have returned a number of surface high grade Au-grades between 1.0 – 90.1 g/t Au.
There was little to no modern exploration conducted in the area prior to Agnico’s exploration work in 2011 and the project area remains underexplored.
Pursuant to the terms of the Agreement, Gold Line will purchase the Projects from Agnico and Agnico will retain a 2% NSR royalty on the Projects, 1% of which may be purchased at any time by EMX for US$1,000,000.
Consideration for the Transaction is US$10 million, comprised of US$7 million in cash, US$1.5 million in common shares of EMX (“EMX Shares”) and US$1.5 million in common shares of Gold Line (“Gold Line Shares”), which shall be paid to Agnico as follows:
|Gold Line Shares|
|Upon signing of the Agreement||$750,000||$375,000||$375,000|
|On the first anniversary of the Agreement||$1,500,000||$500,000||$500,000|
|On the second anniversary of the Agreement||$1,750,000||$625,000||$625,000|
|On the third anniversary of the Agreement||$3,000,000||–||–|
|Gold Line Shares|
Issued to EMX
|Upon signing of the Agreement||–||$375,000||$375,000|
|On the first anniversary of the Agreement||$250,000||$250,000||$500,000|
|On the second anniversary of the Agreement||$312,500||$312,500||$625,000|
In connection with the entering into of the Agreement, and upon completion of the Transaction, the Company intends to pay a fee of US$200,000 to be split evenly between two arms-length third-parties who assisted in facilitating the Transaction, and to be satisfied through the issuance of common shares of Gold Line. All common shares issued in connection with the Transaction will be based on the volume-weighted average price for the 20 trading days prior to the date of issuance.
Completion of the Transaction is subject to customary closing conditions, including the approval by the TSX Venture Exchange.
The scientific and technical information in this news release has been reviewed and approved by Michael Dufresne, M.Sc, P.Geol., P.Geo, Principal and President of Apex Geoscience Ltd, a qualified person as defined by National Instrument 43-101.