First Mining Finance and Brionor Resources are pleased to announce the successful completion of the previously announced acquisition by First Mining of the Pitt gold property from Brionor.
The total consideration paid by First Mining for the Pitt Gold Acquisition was CDN$1,250,000, of which CDN$250,000 was paid in cash and CDN$1,000,000 was satisfied through the issuance of 2,535,293 First Mining common shares (based on the 20-day VWAP as at the date of execution of the purchase agreement).
The First Mining common shares issued to Brionor are subject to a statutory four-month hold period expiring August 28, 2016.
The Pitt Gold Property is located in the Abitibi Region of Quebec and is adjacent to First Mining’s 100% owned Duquesne Gold Project and 10% owned Duparquet Project which were acquired on April 8, 2016 through First Mining’s acquisition of Clifton Star Resources Inc.
On June 20, 2011 Brionor announced a National Instrument 43-101 compliant resource estimate for the Pitt Gold Property which, at a cut-off grade of 3.0 g/t gold, is estimated to have Indicated Resources of 600,000 tonnes grading 7.83 g/t gold (151,000 Au ounces) and Inferred Resources of 476,000 tonnes grading 6.91 g/t gold (106,000 Au ounces).
For further information on this resource estimate refer to the technical report entitled "NI 43-101 Technical Report and Audit of the Preliminary Mineral Resource Estimate for the Pitt Gold Project, Duparquet Township, Abitibi Region, Quebec, Canada 32/D/6" dated June 10, 2011 and authored by William J. Lewis and Alan J. San Martin (independent Qualified Persons for the purposes of National Instrument 43-101).
Keith Neumeyer, Chairman of First Mining, stated: "Completion of the Pitt Gold Acquisition provides First Mining with an additional property in the Abitibi Region of Quebec which is one of the world’s most prolific gold producing regions. This acquisition is synergistic to our recently completed Clifton Star transaction and complements our plans for the Abitibi region."
Dr. Christopher Osterman, P. Geo., Chief Executive Officer of First Mining, a Qualified Person for the purposes of National Instrument 43-101 has reviewed and approved the scientific and technical content of this news release.
First Mining is a mineral property holding company whose principal business activity is to acquire high quality mineral assets with a focus in the Americas.
The Company currently holds a portfolio of 26 mineral assets in Canada, Mexico and the United States with a focus on gold. Ultimately, the goal is to continue to increase its portfolio of mineral assets through acquisitions that are expected to be comprised of gold, silver, copper, lead, zinc and nickel.