Mr. Robert Edwards reports
AFFINITY METALS ENTERS INTO OPTION AGREEMENT TO ACQUIRE DISCOVERY LAKE GOLD PROPERTY LOCATED IN ONTARIO
Affinity Metals Corp. has entered into an option agreement to acquire a 100-per-cent interest in the Discovery Lake property located near Sioux Lookout in the province of Ontario, Canada.
The Discovery Lake property is a large strategic land position exceeding 2,500 hectares located within the highly productive northwestern portion of Ontario. The property lies within the Abram-Minnitaki Lake greenstone belt, a very active, high-grade gold-bearing region that is highly prospective for both gold and base metals.
The property is immediately adjacent to Heritage Mining's Drayton-Black Lake project where recent drilling reportedly intercepted a broad zone of gold mineralization within a thick, well-developed quartz vein system.
Rob Edwards, chief executive officer, commented: "We are excited to expand into this area of Ontario, one of Canada's, and the world's, most prolific gold mining regions that is renowned for its high-grade gold deposits and having produced over 30 million ounces of gold to date. The Discovery Lake property itself has highly prospective underlying geology and is situated within a very active gold-producing greenstone belt. The property has great access with additional infrastructure located close by. We look forward to planning the upcoming exploration program and getting boots on the ground."
Terms of the transaction
The company has signed a three-year option agreement with a private company owned by Perry English (the optionor) pursuant to which the company may acquire a 100-per-cent interest in the Discovery Lake property. In order to fully exercise its option and acquire the Discovery Lake property, over a three-year period the company will pay an aggregate of $64,000 and issue 200,000 common shares of the company. The optionors will retain a 1.5-per-cent net smelter returns production royalty. The company or its assigns will have the right to purchase a 0.5-per-cent royalty for $500,000, leaving the optionor with a 1.0-per-cent royalty. All securities issued in connection with the agreement will be subject to a hold period expiring four months and one day from their date of issuance in accordance with the policies of the Canadian Securities Exchange and applicable securities laws.
About Affinity Metals Corp.
Affinity Metals is focused on the acquisition, exploration and development of strategic metal deposits within North America.
The company holds the 100-per-cent-owned Regal high-grade silver property located near Revelstoke, B.C.
We seek Safe Harbor.
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