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MONTREAL, Jan. 17, 2022 (GLOBE NEWSWIRE) — Sirios Resources Inc. (TSXV: SOI) attracted a $1.5 million investment from a strategic private investor (“the Investor”), enabling management to advance both the re-assay program (based on 1 kg gold paste samples from previously drilled core) and the Preliminary Economic Assessment (PEA) of the project.
Upon closing of this strategic financing later this month, Sirios will issue 21,500,000 common shares at $0.06 per share and the Investor will own approximately 9.2% of the issued and outstanding shares of the Company, the positioning it as the second largest shareholder of Sirios, behind Newmont Corporation.
Dominique Doucet, CEO of Sirios said: “Even though Cheechoo was named Discovery of the Year in 20161, we anticipate an even better year for the project in 2022! We expect to receive all results from last summer’s drill program by the end of the second quarter of 2022 and further results from the 1 kg reassay program beginning in June 2022. Initial results from the reassay program will point to an improvement in the Cheechoo deposit. economic parameters when the program is finished. Once we receive all of the 2021 drill results, we will complete an updated mineral resource estimate along with a preliminary economic assessment. So, with this strong dollar funding in our coffers, Sirios should have a busy and exciting first half of 2022. »
Sirios expects to use most of the proceeds from the financing for further definition and analysis work on its Cheechoo gold project and use the remaining funds for working capital and corporate initiatives.
As part of the financing, Sirios granted the Investor royalties on some of its secondary properties, including:
- A 1.0% net smelter return royalty in respect of the Aquilon gold project, such royalty to be subject to Sirios having a buy-out right for three-quarters of such royalty (effectively a royalty of 0.75 % NSR) upon payment to the investor of C$200,000 at any time before June 30, 2022;
- A 0.5% net smelter return royalty in respect of each of the Pontax, Maskwa, Niska and Tilly 2 projects, such royalties to be subject to Sirios having a buyout right for half of each royalty upon payment to the investor of C$200,000 per exploration project.
The agreement has been approved by Sirios’ board of directors and is subject to final approval by the TSX Venture Exchange. No finder’s fees will be paid for the placement. There will be a hold period of four months and one day on the common shares issued under this financing. As usual on strategic financings, and subject to continuing to hold at least 5% of the outstanding ordinary shares of Sirios, the Investor will be entitled to participate in subsequent equity financings and certain royalty financings and flows of Sirios as well as to appoint a nominee to hold the position of director of the company.
About Cheechoo Property
The Cheechoo gold property, 100% owned by Sirios, is located in Eeyou Istchee Baie-James, Quebec, less than 9 km from the Éléonore gold mine in Newmont. The latest resource estimate for the Cheechoo project (October 2020) estimated at inferred resource of 2.0 million ounces of gold contained in 93.0 million tonnes of rock at an average grade of 0.65 g/t Au, with significant potential to increase this resource (BBA, PL. Richard, P. Geo.; J. Torrealba, P. Eng.; D. Evangelista, P. Eng., NI 43-101 Technical Report, Mineral Resource Estimate Update for The Cheechoo Project, 10/31/2020).
A pioneer in the discovery of significant gold deposits in Eeyou Istchee James Bay, Quebec, Canada, Sirios Resources Inc. is primarily focused on its Cheechoo gold discovery, while actively exploring the gold potential of its other properties.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “United States Securities Act”) or any state securities law and may not be offered or sold in the United States or to US persons unless registered under United States securities law and applicable state securities laws or an exemption from such registration is available.
All statements, other than statements of historical facts, contained in this press release, including, but not limited to, those relating to the intended use of the proceeds of the offering, the final approval of the Venture Exchange TSX regarding the placement, the development of the Cheechoo, Aquilon, Pontax, Niska, Maskwa and Tilly2 projects and, in general, the section “About Sirios Resources inc. paragraph which essentially describes the Company’s outlook, constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, and are based on expectations, estimates and projections at the time of this press release. hurry. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although considered reasonable by the Company at the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Many of these uncertainties and contingencies may directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied by the forward-looking statements and future events could differ materially from those anticipated in such statements. A description of the assumptions used to prepare this forward-looking information and a description of the risk factors that could cause actual results to differ materially from the forward-looking information can be found in the Company’s disclosure documents on the SEDAR website at address www.sedar.com.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions may not reflect not future experience. Forward-looking statements are provided for the purpose of providing information about management‘s efforts to develop the Cheechoo, Aquilon, Pontax, Niska, Maskwa and Tilly2 projects and, more generally, its expectations and plans regarding the future. Readers are cautioned not to place undue reliance on these forward-looking statements as a number of important risk factors and future events could cause actual results to differ materially from beliefs, plans, objectives, expectations, anticipations, estimates , assumptions and expressed intentions. in such forward-looking statements. All forward-looking statements made in this press release are qualified by these cautionary statements and those made in our other filings with Canadian securities regulators. The Company disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material differences between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the rules of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Dominique Doucet, President and CEO, Eng.
Phone. : (514) 918-2867
website : www.sirios.com
1 Sirios’ Cheechoo gold project was named Discovery of the Year in 2016 by the Quebec Mineral Exploration Association (AEMQ).