The TSX Venture Exchange has accepted for filing a mineral property option agreement dated Sept. 1, 2016, between Pistol Bay Mining Inc., and 1544230 Ontario Inc. and Persus Khambatta to acquire a 100-per-cent interest in certain mineral claims covering 640 hectares and known as the Dixie 3 property in Red Lake, Ont.

In order to acquire the property, the company must pay a total aggregate cash consideration of $56,000 and issue an aggregate 2.4 million shares over a three-year period. There is a net smelter return (NSR) royalty of 0.5 per cent payable to the optionors and an additional 0.5-per-cent NSR royalty payable to Rubicon Minerals. The company may purchase 0.5 per cent of the NSR royalty for $400,000 at any time up to when a production decision is made.

The transaction is at arm's length.

For further information, please see the company's news release dated Sept. 1, 2016.

                             Cash       Shares     Work expenditures
Persus Khambatta and  
1544230 Ontario           $56,000    2,400,000                    $0