Mr. Ken Lapierre reports
ROCKY SHORE CONTINUES TO STRENGTHEN ITS GOLD ANCHOR PROJECT BY ADDING ADDITIONAL MINING CLAIMS
Through a wholly owned subsidiary, Rocky Shore Gold Ltd. has entered into two purchase agreements for the acquisition of additional 128 mining claims in central Newfoundland. Upon completion of these transactions, these properties will enhance Rocky Shore's strategic position in one of Canada's most prospective gold belts.
Ken Lapierre, president and chief executive officer of the company, commented: "We are thrilled to come to an agreement to purchase a property on trend to both of our intrusion-hosted Mosquito Hill and Reid gold deposits, which also hosts a section of the prolific Appleton fault corridor, located immediately north of our high-grade Lane Pond gold target. This is particularly timely as we prepare our inaugural drill program at Lane Pond. Our Gold Anchor project is a compelling case of multiple gold systems within a single project. Bulk-tonnage intrusion-related gold systems (IRGS) and high-grade fault-related gold targets clearly identifies this project as high priority within an emerging gold district in central Newfoundland."
Transaction terms
Under the terms of the first purchase agreement, the company, through its wholly owned subsidiary, shall have the right to earn a 100-per-cent interest in and to the 58 mining claims, in consideration for the issuance of 750,000 common shares. The vendor shall retain an aggregate 2.0-per-cent net smelter return (NSR) royalty. Rocky Shore, through its wholly owned subsidiary, may repurchase, at any time, 50 per cent of the NSR for $1-million cash and shall have a right of first refusal on the NSR royalty.
Under the terms of the second purchase agreement, Rocky Shore, through its wholly owned subsidiary, purchased a 100-per-cent interest in 70 mining claims in consideration for $45,000 cash and the issuance of 750,000 common shares of Rocky Shore. The vendor shall retain an aggregate 2.0 per cent NSR royalty. Rocky Shore, through its wholly owned subsidiary, may repurchase, at any time, 50 per cent of the 2.0-per-cent NSR royalty for $1-million cash and shall have a right of first refusal on the NSR royalty.
The completion of each of the purchase agreements is subject to customary closing conditions for a transaction of this nature.
Any shares issued by the company pursuant to the second purchase agreement will be subject to appropriate exemptions, including, but not limited to, the prospectus exemption set forth in Section 2.13 of National Instrument 45-106, Prospectus and Registration Exemptions, and any other requirements under applicable securities laws and regulations.
Qualified person
Ken Lapierre, PGeo, president and chief executive officer of the company, is a qualified person in accordance with the Canadian regulatory requirements as set out in National Instrument 43-101, has reviewed and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.
About Rocky Shore Gold Ltd.
Rocky Shore Gold is a focused Canadian exploration company targeting expansion of its two gold deposits and discovery of major gold zones at its 100-per-cent-owned Gold Anchor project. The project is strategically located in central Newfoundland -- one of Canada's most promising and underexplored gold belts. The district-scale project is the second-largest (greater than 1,200 square kilometres) property within an emerging gold district. It hosts two large porphyry-controlled gold deposits and high-grade structurally controlled gold targets on trend to major gold discoveries and recent gold deposits northeast of the Gold Anchor project. Numerous gold-bearing targets are within the project limits, and several are associated with the highly prospective Appleton and JBP faults.
Rocky Shore would like to acknowledge the financial support and approval of the 2026 junior exploration assistance program from the Department of Natural Resources, government of Newfoundland and Labrador.
We seek Safe Harbor.
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