McFarlane Lake firms up High Lake, West Hawk sale deal

Executive Summary

• McFarlane Lake Mining Ltd. has entered into a definitive asset purchase agreement to sell its High Lake and West Hawk Lake properties to Total Metals Corp. for total consideration of $9.25 million.
• The transaction is contingent upon Total Metals raising at least $10 million in gross proceeds from a concurrent financing, with closing expected on or before October 31, 2025.
• The sale divests specific assets while McFarlane Lake continues to focus on its flagship Juby gold project, which recently received a NI 43-101 compliant resource estimate.

Key Details

• Transaction Structure: Total consideration of $9.25 million, composed of:
  • $7.25 million in cash, payable on closing.
  • 3,333,333 common shares of Total Metals, issued at a deemed price of $0.60 per share, issuable on closing.
• Closing Conditions: Completion is conditional on Total Metals raising at least $10 million in gross proceeds from a concurrent financing, along with customary regulatory and third-party approvals.
• Expected Closing Date: On or before October 31, 2025.
• Assets Sold: High Lake and West Hawk Lake properties, located in close proximity east and west of the Ontario-Manitoba border.
• Company Context (Juby Project): McFarlane Lake holds its flagship Juby gold project near Gowganda, Ont., within the Abitibi greenstone belt.
  • Indicated Resource: 1.01 million ounces at 0.98 g/t Au (31.74 million tonnes) at a $2,500/oz gold price.
  • Inferred Resource: 3.17 million ounces at 0.89 g/t Au (109.48 million tonnes) at a $2,500/oz gold price.
  • Sensitivity Analysis ($3,750/oz): Indicated resource increases to 1.20 million ounces at 0.94 g/t Au; Inferred resource increases to 4.23 million ounces at 0.85 g/t Au.
  • Technical Report: Prepared by BBA E&C Inc.; full report to be filed on SEDAR+ within 45 days.
• Other Assets: McFarlane retains 100% ownership of other gold assets including the past-producing McMillan gold mine, Mongowin properties, and Michaud/Munro properties.

Notable Quotes

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