Rocky Shore signs deals for 128 claims in Newfoundland

Executive Summary

• Rocky Shore Gold Ltd. acquired an additional 128 mining claims in central Newfoundland through two separate purchase agreements, strengthening its Gold Anchor project.
• The acquisitions involve earning a 100% interest in 58 claims via share issuance and purchasing 70 claims for cash and shares, with vendors retaining 2.0% NSR royalties on both tranches.
• The company views these additions as strategically critical, placing them on trend with existing Mosquito Hill and Reid gold deposits and near the high-grade Lane Pond target ahead of an inaugural drill program.

Key Details

• Transaction 1 (Earn-Interest):
  • Target: 58 mining claims.
  • Consideration: Issuance of 750,000 common shares.
  • Royalty: Vendor retains an aggregate 2.0% Net Smelter Return (NSR) royalty.
  • Buyback Option: Company may repurchase 50% of the NSR for $1 million cash and holds a right of first refusal on the remaining royalty.
• Transaction 2 (Cash/Share Purchase):
  • Target: 70 mining claims.
  • Consideration: $45,000 cash plus issuance of 750,000 common shares.
  • Royalty: Vendor retains an aggregate 2.0% NSR royalty.
  • Buyback Option: Company may repurchase 50% of the 2.0% NSR for $1 million cash and holds a right of first refusal on the remaining royalty.
• Strategic Context:
  • The new claims are located on trend to the intrusion-hosted Mosquito Hill and Reid gold deposits.
  • The properties host a section of the prolific Appleton fault corridor, located immediately north of the high-grade Lane Pond gold target.
  • The acquisition supports the company's preparation for an inaugural drill program at Lane Pond.
  • The Gold Anchor project is described as hosting multiple gold systems, including bulk-tonnage intrusion-related gold systems (IRGS) and high-grade fault-related targets.
• Regulatory/Compliance:
  • Shares issued under the second agreement are subject to exemptions under National Instrument 45-106.
  • Ken Lapierre, PGeo, is identified as the Qualified Person under NI 43-101.

Notable Quotes

• "We are thrilled to come to an agreement to purchase a property on trend to both of our intrusion-hosted Mosquito Hill and Reid gold deposits, which also hosts a section of the prolific Appleton fault corridor, located immediately north of our high-grade Lane Pond gold target. This is particularly timely as we prepare our inaugural drill program at Lane Pond." — Ken Lapierre, President and CEO