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Great Bear Resources Ltd (3)
Symbol C : GBR
Shares Issued 38,172,811
Close 2019-05-28 C$ 3.52
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GoldON firms up West Madsen option with Great Bear

2019-05-28 10:26 ET - News Release

See News Release (C-GLD) GoldON Resources Ltd (2)

Mr. Michael Romanik of GoldON reports

GOLDON SIGNS DEFINITIVE AGREEMENT WITH GREAT BEAR ON WEST MADSEN PROPERTY

Further to the news release of April 30, 2019, GoldON Resources Ltd. has signed a definitive agreement with Great Bear Resources Ltd., wherein GoldON has the option to earn an initial 60-per-cent interest and a subsequent 100-per-cent interest in Great Bear's West Madsen gold property.

The property comprises two contiguous claim blocks (blocks A and B), each roughly six kilometres by three kilometres in size, for a total area of 3,860 hectares, and is a newly identified geological continuity of the greenstone belt within the Balmer and Confederation assemblages. Block A is contiguous with Pure Gold's Madsen project, which is host to the historical Madsen and Starratt Olsen gold mines and where Pure Gold recently completed a feasibility study on the Madsen deposit and a preliminary economic assessment on the Fork, Russett South and Wedge deposits.

"I am truly excited about the discovery potential of the West Madsen property as it ticks all the boxes for a gold exploration project. It's located in the heart of the prolific Red Lake camp, adjoins the highest-grade gold development project in Canada, and we have Great Bear Resources as a partner and technical adviser," said Michael Romanik, president of GoldON.

In order to earn an initial 60-per-cent interest in the property, GoldON must:

  1. Incur minimum exploration expenditures on the property as follows:
    1. $100,000 on or before the first anniversary of the definitive agreement;
    2. A cumulative total of not less than $350,000 on or before the second anniversary of the definitive agreement;
    3. A cumulative total of not less than $750,000 on or before the third anniversary of the definitive agreement;
  2. Pay cash to Great Bear as follows:
    1. $50,000 within 10 days of signing a definitive agreement;
    2. $50,000 on or before the date that is 10 days after the first anniversary of the definitive agreement;
    3. $75,000 on or before the date that is 10 days after the second anniversary of the definitive agreement;
  3. Issue common shares of GoldON to Great Bear as follows:
    1. 250,000 shares within 10 days of signing the definitive agreement;
    2. 250,000 shares on or before the date that is 10 days after the first anniversary of the definitive agreement;
    3. 375,000 shares on or before the date that is 10 days after the second anniversary of the definitive agreement.

In order to earn the remaining 40-per-cent interest, for a total of 100-per-cent interest, GoldON must:

  1. Incur additional exploration expenditures on the property of at least $750,000 on or before the fourth anniversary of the definitive agreement;
  2. Pay $500,000 cash or issue 500,000 shares to Great Bear at GoldON's election on or before the date that is 15 days after the third anniversary of the definitive agreement.

Great Bear will retain a 2.5-per-cent net smelter return royalty after GoldON completes the initial 60-per-cent earn-in. GoldON shall have the right to buy back 1 per cent of the royalty for $500,000 at any time prior to a production decision being made on all or part of the property.

R. Bob Singh, PGeo, an independent qualified person as defined in National Instrument 43-101, has reviewed and approved the technical contents of this news release on behalf of the company.

About GoldON Resources Ltd.

GoldON is an exploration company focused on discovery-stage properties located in the prolific gold mining belts of Northwestern Ontario, Canada. The company has recently added projects in the Red Lake camp to its portfolio to go along with its flagship Slate Falls project, where 18 gold-silver-mineralized zones have been identified over the seven-kilometre breadth of the property. GoldON is fully financed to complete its spring/summer work programs.

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