Not for distribution in the US
Calgary, Alberta, Aug. 25, 2021 – Long Range Exploration Corporation (the “Company” or “Long Range”) is pleased to announce it has entered into an Option Agreement pursuant to which Long Range can earn a 100% interest in 1391 Hectare mineral claims the Option Property”) adjoining the recently acquired Unknown Brook Mineral Claim from New Found Gold Corp. (TSXV: NFG). The Option Property is host to five reported gold showings/prospects:
- Browning Mine
- Browning West Showing
- Claim 59 Showing
- Wizard Showing
- Simms Ridge Showing
The transaction closed on August 25th, 2021.
The Option Property consists of 8 licences or 55.64 Claims totaling 1391 Ha. The property is located on the eastern margin of the Humber Zone of the Appalachian Orogen. Gold mineralization is epigenetic and is associated with mesothermal-style quartz and quartz carbonate veins that typically also contain base-metal sulphides such a pyrite, chalcopyrite, galena and sphalerite. Auriferous veins are mostly hosted by volcanic and volcaniclastic rocks of the Pollards Point Formation or by sedimentary rocks of the Simms Ridge Formation which respectively sit west and east of a proposed structure separating the two sequences within the Sops Arm Group.
Description of the following five reported gold showings/prospects were from information published in the Mineral Occurrence Database System (MODS) Report, Government of Newfoundland and Labrador.
- The Browning Mine was the first producing gold mine in Newfoundland history. The prospect was discovered in 1898 and by the end of 1903 it had produced 149 oz of gold from 1000 tons of rock.
- The Browning West occurrence shows channel samples with up to 4.7 g/t gold and chips of vein with 4.8 g/t gold.
- The Claim 59 occurrence consists of quartz-pyrite veins. Gold values up to 5.6 g/t have been returned from samples of these veins which are hosted by a strongly cleaved pyritic sericite schist.
- The Wizard occurrence showed values of 5300 ppb (5.3 g/t) gold in grab samples and 2300 ppb (2.3 g/t) gold over 2.4 metres in trench samples.
- The Simms Ridge occurrence showed a selected sample from a sulphide bunch of weathered galena which assayed 5.23 oz/ton gold and 47.04 oz/ton silver.
The Option Property is located approximately 50 kilometers north of the Trans-Canada Highway along Route 420 and approximately 100 kilometers northeast of Deer Lake which has an airport with connecting flights to most major Canadian centers. The Option Property is accessible via a network of abandoned forestry roads.
The optionors consist of 3 prospector companies (the “Optionors”) with an extensive and successful track record of mineral exploration in the Province of Newfoundland. The Option Agreement aligns the Company with an exploration team that has knowledge of local geology, in depth understanding of regulatory and environmental requirements, boots on the ground and access to service providers for execution of exploration activity.
For Long Range to earn 100% of the Option Property, Long Range has agreed to the following terms:
- Payment of $6,000.00 to the Optionors upon signing the Option Agreement to provide an exclusive right to the Option Property for 8 months until the Company is listed on a Canadian stock exchange (the “Listing Date”).
- Issuing 7% of the outstanding shares (“Compensation Shares”) of the Company to a maximum of 3,750,000 shares, 1/3 of this amount issued at the Listing Date on a Canadian exchange and the remaining 2/3 issued to the Optionors within 30 days of Listing Date.
- Incurring expenditures on the Property of not less than an aggregate of $1,500,000 as follows:
i. $200,000 on or before the 12 month anniversary of the Listing Date;
ii. An additional $500,000 on or before the 24 month anniversary of the Option Agreement; and
iii. An additional $800,000 on or before the 36 month anniversary of the Listing Date.
- In addition to resale restrictions under applicable Law, the Compensation Shares issued to the Optionors pursuant to the Option Agreement shall be restricted as to ¼ at 12 months, ¼ at 18 months, ¼ at 24 months and the final ¼ at 36 months from the Listing Date.
- The Optionors reserved a 2% net smelter returns royalty (“NSR”). Long Range has an option to buy back 1.5% of the royalty for $2,000,000.
Pursuant to this transaction, the Optionors have become a significant shareholder of Long Range Exploration Corporation.
About Long Range Exploration Corporation
Long Range is an emerging, privately held, Canadian mineral exploration company. Our core strategy is to acquire ownership of highly prospective projects and then undertake disciplined and focused exploration using proven and evolving geological techniques. Learn More.
This news release may contain certain “forward-looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.