Frontline Completes Sale on a Portfolio of Red Lake Royalties in Red Lake
For Immediate Release
Toronto, Ontario – (December 15, 2020) – Frontline Gold Corporation (TSX-V:FGC) (“Frontline” or the “Company”) is pleased to announce that it has closed the previously announced executed purchase agreement to sell a portfolio of Red Lake Net Smelter Royalties ("NSRs") to EMX Royalties Corporation (“EMX”) for a total purchase of $800,000, which is being paid 50% in cash and 50% in shares of EMX. The transaction which was subject to EMX receiving both TSX Venture Exchange and New York Stock Exchange approvals has been approved.
Commentary
Frontline's President and CEO, Mr. Walter Henry, said “The net proceeds from this royalty sale will be used to fund continued exploration and development activities at the Company's Ontario and Quebec properties, a 1,000 metre drilling program at it Menderes Gold property in Turkey in early 2021, to complete additional property acquisitions, capital restructuring and for general working capital purposes.”
The sale of the NSRs from these 4 Red Lake Property groups does not include other gold properties that Frontline owns 100% within the Red Lake Mining Division, Ontario.
This portfolio of Frontline’s NSRs in Red Lake arose from the optioning of four Red Lake Property groups to Pacton Gold Inc. ("Pacton"), between November 2018 and October 2019. In summary, 4 option agreements (“Red Lake Options”) to purchase were entered into between Pacton and Frontline consisting of 41 legacy claims (totaling ~6,100 hectares), distributed over four properties (Gullrock Lake, Duchess, Red Lake, Tilly) in the heart of the Red Lake mining district, Ontario, all of which are currently optioned to, or operated by, Pacton Gold Inc. As part of these Red Lake Options Frontline retained net smelter return royalties ranging from 0.25% to 2.25% on all of the Red Lake properties optioned. The Red Lake Options which were summarized in a Frontline May 28, 2020 press release (https://www.frontlinegold.com/news/frontline-provides-update-on-its-red-lake-net-smelter-royalties) are all in good standing.
Mike Kilbourne, P. Geo, 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 Frontline Gold Corporation
Frontline is a Canadian junior mineral exploration company. The Company's properties include the optioned gold projects in Red Lake area of Ontario, Cameron Lake Gold Project (Ontario), Paint Lake Road Gold Project (Ontario), the Route 109 Gold Project in the Abitibi Region of Quebec, the Portage River Gold Project in the Abitibi Region of Quebec, the Confederation Lake Project which is approx. 60 kms east of the Red Area and the Menderes gold project in the Izmir province of Western Turkey. Other Canadian exploration properties include other gold property groups in Ontario and include the Whitehorse Island Mining Patents. In addition, Frontline has a large NSR package on four separate gold property groups in Red Lake, which are currently under option to the Pacton Gold.
Frontline continues to actively seek projects, and additional investor/partner(s) in order to continue to build upon its properties and net smelter return royalties.
Further information about the Company is available on the Company’s website, www.frontlinegold.com , or our social media sites listed below:
Facebook: https://www.facebook.com/Frontline Gold Corp./
Twitter: https://twitter.com/frontlinegold
Linkedin: https://www.linkedin.com/company/frontline-gold-corp-fgc-
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
“Walter Henry”
Walter Henry, President & CEO FRONTLINE GOLD CORP.
Contact: Walter Henry
Phone: (416) 861-9090
Email: info@frontlinegold.com
Website: www.frontlinegold.com
Frontline Gold Corp. (TSX-V: FGC)
372 Bay Street, Suite 301
Toronto, Ontario
M5H 2W9