Damara Gold Announces Receipt Of Exchange Approval In Respect Of The Vanlab Property Acquisition
DAMARA GOLD CORP. (TSXV:DMR) (“Damara” or the “Company”) is pleased to announce further to its news release of December 23, 2022 it has received TSX Venture Exchange approval with respect to the proposed acquisition of a 100% undivided interest in the VanLab Property located in the Quebec territory of Nunavik 200 km north of Schefferville and 200 km south of Kuujjuaq (the “Acquisition”).
The Acquisition is being carried out in accordance with the terms of a property purchase agreement (the “Purchase Agreement”) dated December 22, 2022, between the Company and two arm’s length sellers (the “Sellers”). Pursuant to the Purchase Agreement, as consideration for acquiring a 100% interest in the VanLab Property, the Company has issued as consideration to the Sellers: (i) an aggregate of 4,000,000 units (each a “Unit”). Each Unit is comprised of one common share (a “Consideration Share”) in the capital of Damara and one non-transferable share purchase warrant (each a “Warrant”). Each Warrant entitles the Sellers to acquire one additional common share in the capital of Damara (the “Warrant Shares” and together with the Consideration Shares and Warrants, the “Consideration Securities”) at an exercise price of $0.25 for a period of thirty-six (36) months to expire on December 23, 2025; and (ii) Damara has granted to the Sellers an aggregate 2% net smelter return royalty.
The Consideration Securities will be subject to a statutory four month and one day hold period under applicable securities laws to expire on January 24, 2023.
The VanLab Property
The Vanlab property covers a portion of the Labrador trough approximately 200 km northwest of Schefferville. Historical public data obtained from the files of the Ministère de l’Énergie et des Ressources naturelles-Québec indicates the presence of various minerals. The main potential interest includes vanadium, copper, cobalt and scandium. One historical sample reported 6% Vanadium (showing Surprise 2, GM41311). The result from this sample has not been independently verified by Vanlab. It is listed in documents filed with the Ministère. The entire claim block has been surveyed by modern airborne electromagnetics, magnetics and radiometrics. Vanlab obtained this public data from the ministry files and reprocessed it to identify specific targets for a 2023 field program. The primary exploration focus will be vanadium, copper and cobalt.
About Damara
Damara Gold Corp. is a TSX Venture listed Canadian public company with a Board of Directors seasoned in the mineral exploration industry with extensive and successful international experience with a focus on identifying and acquiring prospective and under-explored gold properties worldwide.
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