Trillium Gold Mines Inc. is a growth focused company engaged in the business of acquisition, exploration and development of mineral properties located in the Red Lake Mining District of Northern Ontario

figure-1

Map showing Uchi Gold Additional claims. (Credit: Trillium Gold Mines Inc.)

Trillium Gold Mines Inc. (TSXV:TGM, OTCQX:TGLDF, FRA:0702) (“Trillium Gold” or the “Company”) is pleased to announce that it has signed an option agreement (the “Agreement”) to acquire a 100% undivided interest in a total 2,541 hectares immediately adjacent to, and encompassed by, Trillium’s Uchi Gold assemblage in Red Lake, Ontario. These claims effectively extend Trillium Gold’s dominant foothold along the Confederation belt on the same geological trends as Evolution Mining’s Red Lake Operations and Kinross Gold’s LP Fault Zone of the ‘Dixie’ discovery.

Pursuant to the terms of the Agreement, in order to keep the option in good standing, Trillium is required to make a cash payment to the vendors of Cdn $80,800 and issue an aggregate of 200,000 common shares in the capital of the Company (“Common Shares”)

The Common Shares of Trillium Gold issued under the Agreement will be subject to a four-month holding period from the closing date. The Agreement is subject to the approval of the TSXV and other applicable regulatory authorities.

In addition, Trillium Gold shall enter into a royalty agreement (the “Uchi Royalty Agreement”) whereby the Company will grant the vendors a maximum royalty not exceeding an aggregate of 1.5% Net Smelter Returns (NSR) royalty on each claim comprising the Uchi Property, (each a “Uchi Royalty”). Each Uchi Royalty will be subject to a one-time option to repurchase from the vendors 0.5% of the Uchi Royalty (resulting in a 1.0% remaining Uchi Royalty) by paying to the vendors an aggregate amount equal to Cdn $500,000.

Source: Company Press Release