Val-d’Or Mining closes Upper Red Lake acquisition, Ontario

Val-d’Or Mining Corp. [VZZ-TSXV] has now closed the transactions contemplated by the letter agreement dated March 9, 2023, with Gold Royalty Corp.’s [GROY-NYSE] wholly owned subsidiary, Golden Valley Abitibi Royalties Ltd.

The company has purchased from Gold Royalty the mineral rights and interests in the Upper Red Lake property located in Northern Ontario in consideration for which the company has granted to Gold Royalty a net smelter return royalty of 1.0% on the Upper Red Lake property.

No cash or equity consideration was paid for the Upper Red Lake property. Val d’Or Mining will pay to Gold Royalty 20% of any future consideration received by the company, consisting of cash, shares or other securities of any entity received by the company from a third party in consideration for any interest in, or otherwise in relation to, the Upper Red Lake property, pursuant to any transaction, agreement or other arrangement entered into, agreed to or announced by the company on or before March 21, 2024 in relation to such property.

Gold Royalty holds 28,965,050 shares in Val d’Or Mining, representing 35.6% of its issued share capital, and accordingly is an insider of the company in accordance with applicable securities legislation. The transaction therefore constitutes a “related party transaction” under Multilateral Instrument 61-101 (MI 61-101).

The Upper Red Lake Gold Project consists of 12 contiguous mineral claims (1,750 Ha) located in the Birch-Uchi Greenstone Belt, within the Red Lake Mining Division of northern Ontario. The project, located approximately 60 km ENE of Red Lake, is road accessible and largely lies along the NW boundary of Prosper Gold’s Golden Sidewalk Project. Till sampling in the fall of 2021 over three target areas (C1, C2 and C3) returned anomalous values, primarily from the C1 target area. C1 has been described as spanning 2,200-metres in an east-west direction, characterized by a linear magnetic high coincident with a greenstone-intrusive contact (values ranging up to 7834 ppb). Targets C2 and C3, located to the south are thought to potentially represent the continuation of the “Golden Corridor” target, a 7-km * 0.5-km gold in till anomaly, on the adjacent Prosper Gold property.