VANCOUVER, BC – (April 19, 2018) – FireFox Gold Corp. (“FireFox” or the “Company”) is pleased to announce that it has executed a non-binding letter of intent (“LOI”) with Magnus Minerals Ltd. (“Magnus”) outlining a purchase option agreement under which FireFox can acquire 100% interest in approximately 50,630 hectares of mineral exploration reservations in Lapland, Finland. The new properties are comprised of four separate reservations, collectively referred to as the Seuru Properties (or the “Properties). Combined with its other holdings of exploration reservations and ore prospecting permits, this acquisition will bring FireFox’s total gold exploration portfolio to more than 117,000 hectares or 1,170 square kilometers.
Subject to the execution of a definitive agreement (the “Agreement”), the Company has agreed to earn its interest in the Properties by making payments of up to CAD $200,000 in cash and 1,500,000 shares to Magnus over a three-year period, while investing CAD $1,500,000 in mineral exploration on the Properties. Magnus will retain a 1.5% NSR royalty on production from the Properties, 0.5% of which can be purchased for 1,000 troy ounces of gold.
Patrick Highsmith, Chairman of FireFox, commented: “Once executed in the next few weeks, this Agreement will deliver FireFox into an elite group of large tenement holders in the Central Lapland Greenstone Belt. These new properties lie in the highly prospective Kittilä Group rocks. This is an important new target area for the Company because these rocks are host to Finland’s only world class gold deposit, Agnico Eagle’s Kittilä Mine. In fact, a portion of the Seuru Property adjoins the east side of the mine property. We are excited to begin work on the Properties, which are rich with target opportunities.”
The Properties are generally underlain by the mafic volcanic rocks of the Kittilä Group. The Properties have seen approximately CAD $3 million of historic investment. The historic geophysical surveys, till geochemistry, and drilling results in the Geological Survey of Finland (GTK) database indicate a number of target areas where structural intersections coincide with gold and trace element geochemical anomalies. The prominent structural controls on mineralization in this area, including at the Kittilä deposit, tend to be oriented NNE and NNW.
Dr. Petri Peltonen, Exploration Manager of FireFox Gold, is a qualified person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Dr. Peltonen has prepared the technical information in this news release.
Patrick Highsmith, Certified Professional Geologist (AIPG CPG # 11702) and director of the Company, is a qualified person as defined by National Instrument 43-101. Mr. Highsmith has helped prepare and approve the technical information in this news release.
About FireFox Gold Corp.
FireFox is an unlisted reporting issuer in British Columbia and focused entirely on gold exploration in Finland. The Company holds a 100% interest (subject to a NSR royalty) in the 147-hectare Mustajärvi Property in Lapland. In addition to the Properties that are the subject of the LOI announced here, the Company has an option agreement with Magnus Minerals Ltd., a private prospect generator company in Finland, through which it has an option to acquire a 100% interest in in the Jeesiö, Riikonkoski and Ylöjӓrvi projects (subject to a NSR royalty) that currently encompass approximately 67,000 hectares. In order to complete the option, the Company must invest CAD $2.5 million in exploration on the properties and make cash payments to Magnus of CAD $250,000 over a three-year period (See Silverstone Resources Corp. news release dated Aug 2, 2017).
Finland is one of the top mining jurisdictions in the world as indicated by its 1st ranking in the Investment Attractiveness Index of the 2017 Fraser Institute Survey of Mining Companies. With a strong mining law and long mining tradition, Finland remains underexplored for gold. Recent exploration results in the country have highlighted its prospectivity, and FireFox is proud to have a Finland based CEO and technical team.
On behalf of the Board of Directors,
Chief Executive Officer
FireFox Gold Corp.
Forward Looking Statements: The information in this news release contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release may include statements regarding future exploration programs and the timing thereof including maiden drill targets, operation plans and Finnish mining prospects. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary. The forward-looking statements contained in this press release represent the expectations of FireFox as of the date of this press release and, accordingly, are subject to change after such date. Readers should not place undue importance on forward-looking statements and should not rely upon this information as of any other date. FireFox does not undertake to update this information at any particular time except as required in accordance with applicable laws.
It should also be noted that while FireFox’s properties are sometimes adjacent to or nearby operating or historic gold mines or active gold projects being advanced by other companies, the mineralization on properties nearby FireFox’s land packages is not necessarily indicative of mineralization on FireFox’s properties.