Labrador Gold signs deal to form JV with Nemo

Executive Summary

• Labrador Gold Corp. has entered into a letter agreement to form a corporate joint venture with Nemo Resources Inc. via a private exploration company, Elementary Minerals Inc., to explore the Watson Project in Northwestern Ontario.
• The joint venture involves the consolidation of mineral claims totaling 127,100 hectares in the underexplored Fort Hope greenstone belt, with Nemo serving as the operator and Labrador Gold providing significant capital for exploration.
• The transaction structure grants Labrador Gold an 80% interest and Nemo a 20% interest in Elementary Minerals Inc., based on capital contributions and claim transfers.

Key Details

• Joint Venture Structure: Labrador Gold and Nemo Resources are forming a joint venture through Elementary Minerals Inc. Nemo will act as the operator of the venture.
• Asset Acquisition: Elementary Minerals has acquired 127,100 hectares of mineral claims via map staking in the eastern Fort Hope greenstone belt, known as the Watson Project. The land is free of royalties, with no option payments or work commitments.
• Consideration and Equity Split:
  • Nemo Resources: Transferred 314 map-staked mining claims (6,300 hectares) and related exploration data to Elementary in exchange for 4 million common shares, representing a 20% ownership stake.
  • Labrador Gold: Contributed a total of $1.5 million to Elementary in exchange for 16 million common shares, representing an 80% ownership stake.
    • $303,842 contributed to cover the costs of staking 6,040 additional mining claims (120,800 hectares) surrounding the Watson property.
    • $1,196,158 contributed to cover general and administrative expenditures and to finance approved exploration programs and budgets.
• Governance: The board of Elementary Minerals will consist of three nominees: two from Labrador Gold and one from Nemo. Work programs will be approved by a technical committee comprising two representatives from LabGold and one from Nemo.
• Project Geology and Potential:
  • The Watson Project is located in the Fort Hope greenstone belt (FHGB), an Archean greenstone belt that is significantly underexplored compared to nearby Red Lake and Pickle Lake belts.
  • The geology includes mafic/felsic volcanic rocks, sedimentary sequences, and tightly folded/banded iron formations (BIF).
  • BIF-hosted gold mineralization is present in the western portion of the belt; however, the Watson property (eastern portion) has not yet been drill-tested.
  • Potential exists for both gold and critical minerals, including antimony, nickel, copper, and zinc.
• Exploration Plans: Elementary is establishing 2026 exploration plans, which will likely include a substantial airborne survey followed by soil sampling to identify large gold deposits.
• Infrastructure Catalyst: A proposed road to the Ring of Fire is expected to begin construction in mid-2026, running through the Watson property, which is expected to significantly reduce future exploration and development costs.

Notable Quotes

• Ryan Weston, LabGold Vice-President of Exploration: "We're very excited about this opportunity with Elementary. We see outstanding exploration potential at Watson, where favourable geology converges with major structural corridors that have historically received only limited base -- metal exploration. The presence of significant high-grade, BIF-hosted gold mineralization in the western belt strongly reinforces our exploration thesis. The district-scale land package comprises over 127,000 hectares of prospective greenstone belt, which we plan to systematically screen for large-scale mineral deposits."