O3 Mining Inc. is pleased to announce the closing of two transactions – with each of NewOrigin Gold Corp. ("NewOrigin") and Globex Mining Enterprises Inc. ("Globex") – which will strengthen O3 Mining's presence in the Casa Berardi trend by consolidating the Kinebik project, as described below.

O3 Mining's President and Chief Executive Officer, Mr. José Vizquerra commented: "We are pleased to consolidate the Kinebik and Cameron properties into an exploration package along the Casa Berardi trend that we expect will have strategic benefits for the long-term operations of the Corporation. Consistent with our core exploration strategy, this transaction is an extension of our mission to explore and develop the major geologic faults in Québec. Our exploration success on the Cadillac Break will provide a baseline of expertise to continue our strategy along the prolific Casa Berardi trend".

Completed Acquisition of Kinebik Properties from NewOrigin

On May 17, 2023, O3 Mining and NewOrigin announced a property sale agreement pursuant to which O3 Mining agreed to acquire (the "Kinebik Acquisition") and NewOrigin agreed to sell all of its rights, titles and interest in and to the Kinebik property located along the Casa Berardi trend in Québec (the "Kinebik Properties"). Please see the news release of O3 Mining dated May 17, 2023 and entitled "O3 Mining Announces Transaction to Acquire Kinebik Property from NewOrigin Gold Corp.".

The parties subsequently agreed to close the Kinebik Acquisition in two tranches to accommodate a disinterested shareholder approval requirement imposed on NewOrigin by the TSX Venture Exchange for the disposition of certain claims comprising the Kinebik Properties.

On June 13, 2023, O3 Mining and Kinebik closed the first tranche of the Kinebik Acquisition. Please see the news release of O3 Mining dated June 13, 2023 and entitled "O3 Mining Announces Closing of Kinebik Property Acquisition from NewOrigin Gold Corp.".

O3 Mining is pleased to announce that, earlier today, it closed the final tranche of Kinebik Acquisition.

O3 Mining acquired the Kinebik Properties from NewOrigin for aggregate cash consideration of C$50,000 and 88,404 common shares of the Corporation ("Shares"), of which (i) 29,469 Shares were issued upon the first tranche closing on June 13, 2023, and (ii) 58,935 Shares were issued upon the final tranche closing earlier today. The Shares issued to NewOrigin pursuant to the final tranche closing of the Kinebik Acquisition are subject to a hold period of four months and one day in accordance with applicable Canadian securities laws. The closing of the Kinebik Acquisition is subject to the final approval of the TSX Venture Exchange.

Completed Acquisition of Cameron Properties from Globex Mining

O3 Mining is also pleased to announce that it closed the acquisition (the "Cameron Acquisition") of all of Globex's rights, titles, and interest in and to the mining claims constituting the Abitibi projects located in the Province of Québec (the "Cameron Properties" or "Cameron"). This acquisition was completed pursuant to an asset purchase agreement (the "Globex Agreement") dated December 21, 2023 between the Corporation and Globex Mining.

Under the terms of the Globex Agreement, the Corporation acquired 100% of the rights, titles, and interest in and to the Cameron Properties in exchange for (i) cash consideration of C$150,000, (ii) the issuance of 1,185,897 Shares to Globex, (iii) the retention by Globex of a 2.5% Gross Metals Royalty ("GMR") payable to Globex on all metal production from certain of the claims constituting the Cameron Properties (the "Globex Claims GMR"), and (iv) the retention by Globex of a 1.0% GMR on all metal production from certain other claims constituting the Cameron Properties.

In connection with the Cameron Acquisition, Globex granted to O3 Mining (i) the right to repurchase 40% of the Globex Claims GMR (equal to a 1.0% GMR interest) from Globex at any time up to the commencement of commercial production for a purchase price of C$1,500,000, half of which shall be payable by the Corporation in cash and half of which shall be payable by the Corporation in common shares (subject to the approval of the TSX Venture Exchange), and (ii) a right of first refusal on any sale of the Globex Claims GMR by Globex.

The Shares issued to Globex pursuant to the Cameron Acquisition are subject to a hold period of four months and one day in accordance with applicable Canadian securities laws. In addition, 50% of such Shares will be subject to a contractual lock-up period of six months from the closing date of the Cameron Acquisition, and the remaining 50% of such Shares will be subject to a contractual lock-up period of 12 months from the closing date of the Cameron Acquisition. The closing of the Cameron Acquisition is subject to the final approval of the TSX Venture Exchange.

On a go-forward basis, O3 Mining will be consolidating the Kinebik Properties and the Cameron Properties into a single project to be known as the "Kinebik Project".

Figure 1: Kinebik and Cameron Properties

 

Source:prnewswire.com

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