Gold Line Resources Closes Acquisition of Oijärvi Exploration Licence
VANCOUVER, BC, January 25, 2021 /CNW/ - Gold Line Resources Ltd. (TSX-V: GLDL) (OTCQB: TLLZF) (“Gold Line”) (the “Company” or “Gold Line”) is pleased to announce the closing of the previously announced acquisition of the Oijärvi exploration reservation (the “Oijärvi Reservation”), located in Finland (the “Transaction”), pursuant to a purchase and sale agreement dated April 1, 2019 (as amended, and as further amended by an agreement dated December 31, 2021, together, the “Agreement”) among the Company, Eurasian Minerals Sweden AB (“EMSAB”), Viad Royalties AB (“VRAB”, and together the “Sellers”, both of which are wholly-owned subsidiaries of EMX Royalty Corp. (“EMX”).
The acquisition of the Oijärvi Extension from EMX, will add approximately 16,000 hectares (ha) to the Company’s land position within the Oijärvi Greenstone Belt which, along with the Company’s 2021 acquisition of the Oijärvi Gold Project (or the “Project”) from Agnico Eagle Mines Ltd. (“Agnico”) (see GLDL news release dated March 22, 2021) will establish Gold Line as the largest land package holder in the region, as well as the 100% controlling interest holder of the Oijärvi Greenstone Belt, an emerging gold belt in Finland.
In consideration for the acquisition of the Oijärvi Reservation, the Company has agreed to: (i) reimburse EMSAB for CDN$30,000 representing certain costs associated with the Oijärvi Reservation; (ii) issue 1,125,000 common shares (the “Consideration Shares”) to EMX within 15 business days of the closing date (being December 31, 2021, the “Closing Date”), subject to final approval of the TSX Venture Exchange (the “Exchange”); (iii) grant the Sellers an uncapped 3% net smelter return royalty (“NSR”), subject to a purchase right in favour of the Company exercisable within six years from the Closing Date to acquire 1% of the NSR (resulting in the Sellers holding a 2% NSR); and (iv) pay the Sellers annual advance royalty (“AAR”) payments of 30 ounces of gold commencing on the second anniversary of the Closing Date, with each AAR payment increasing by five ounces of gold per year up to a maximum of 75 ounces of gold per year. In addition, the Oijärvi Reservation will be held by the Sellers, in trust for the Company, until such time as the Oijärvi Reservation has been converted into an exploration permit application (the “Exploration Permit Application”) registered in the name of Gold Line or an affiliate thereof. While holding the Oijärvi Reservation and the Exploration Permit Application in trust for Gold Line, the Company will have the right to conduct exploration and development activities on or with respect to the project area, for purposes of determining viability of the project.
The Consideration Shares will be subject to a hold period of four months plus one day.
The Company believes that the Oijärvi Extension will be a highly prospective addition to the Gold Line portfolio, and that the relatively low amount of exploration within the Belt to date could result in significant upside potential for Gold Line. This is a rare opportunity for a single company to be able to control the entirety of an underexplored, yet highly prospective, greenstone belt. The Company plans to develop a robust exploration program within the region and build upon the promising data available to date.
“We have acquired 100% of an underexplored Greenstone belt in Finland which is one of the best places in the world to be exploring for gold. The project has been meticulously maintained by Agnico Eagle for over a decade, with no other junior company to have touched the ground. The Company is incredibly well positioned with district scale projects in both Sweden and Finland, and an exciting work plan for 2022,” commented Adam Cegielski, Gold Line’s CEO.
About Gold Line Resources Ltd.
Gold Line is focused on advancing gold projects with significant exploration potential in prolific gold-producing regions of Sweden and Finland. Gold Line is working in one of the world's top mining jurisdictions and emerging exploration frontiers due to its strong mineral endowment, stable tenure, straightforward permitting, favourable tax regime and supportive geopolitical landscape.
Gold Line currently holds a prospective portfolio of five gold exploration projects in Sweden: one project is in the Skelleftea belt of north-central Sweden and four projects, including the Långtjärn property, are located within the Gold Line Mineral Belt of north-central Sweden. The projects are located on a 200-kilometre Proterozoic greenstone sedimentary belt that is host to multiple gold showings and deposits.
On behalf of the Board of Directors of Gold Line Resources,
CEO & Director
Neither the Exchange nor its Regulation Services Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause Gold Line’s actual results, performance or achievements, or developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this news release include, among others, statements relating to expectations regarding the Transaction, the business, exploration and development plans of Gold Line following completion of the Transaction, conversion of the Oijarvi Reservation into an Exploration Permit Application, the results of exploration and development activities, the anticipated benefits and synergies of the Transaction, and other statements that are not historical facts. Forward-looking statements are based on Gold Line’s current beliefs and assumptions as to the outcome and timing of future events, including, but not limited to, that the Transaction will be approved by the Exchange, and that the anticipated benefits and synergies of the Transaction will be realized. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: that there is no assurance that the Transaction will receive final approval of the Exchange, or that the anticipated benefits or synergies of the Transaction will be realized; following completion of the Transaction, Gold Line may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions; compliance with extensive government regulation; domestic and foreign laws and regulations could adversely affect Gold Line’s business and results of operations; the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of Gold Line’s securities, regardless of its operating performance; and the impact of COVID-19.
The forward-looking statements contained in this news release represent the expectations of Gold Line as of the date of this news release and, accordingly, are subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Gold Line does not undertake any obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
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CO: Gold Line Resources Ltd.