PRB-V
Probe Metals Completes Sale of Certain Properties in the Casa-Cameron Project, Quebec
|   TORONTO, ONTARIO -- (Marketwired) -- 07/27/16 -- Probe Metals Inc. (TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce that it has completed the previously announced agreement to sell three blocks of mining claims forming part of the Casa-Cameron Project, being the Vezza Extension Property, the Vezza North Property and the Bachelor Extension Property (each a "Property" and together, the "Properties") to GFK Resources Inc. (TSX VENTURE:GFK) ("GFK") (see press release dated July 20, 2016).
Pursuant to the agreement, in consideration for the Properties, GFK issued to Probe 3,000,000 common shares ("GFK Shares") at a deemed issue price of $0.13 per GFK Share, for a total of $390,000. The common shares are subject to a hold period of four months from closing. Upon closing, GFK granted to Probe a 2% net-smelter-return royalty over the Properties, of which 1% can be purchased by GFK, at any time, for $1,000,000. Additionally, Probe and GFK terminated the option agreement dated December 11, 2013, pursuant to which GFK had the right to earn a 100% interest in the Casa-Cameron Project. In consideration for termination of the option agreement, GFK paid Probe an amount of $275,000 to keep the mining claims in the Casa-Cameron Project in good standing for 2016 and 2017.
Following the transaction, Probe owns an aggregate of 5,000,000 GFK Shares, representing 12.3% of the outstanding GFK Shares. Prior to the above-described transaction, Probe owned 2,000,000 GFK Shares, representing 5.3% of the outstanding GFK Shares. Probe acquired the GFK Shares pursuant to the transaction for investment purposes. Probe may, depending on market and other conditions, increase or decrease its ownership of securities of the Issuer, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.
The transaction has received all necessary approvals, including the approval of the TSX Venture Exchange. An early warning report will be filed by Probe in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact Patrick Langlois, Vice President of Corporate Development of Probe, at (416) 777-9470.
Probe's head office is located at 56 Temperance Street, Toronto, Ontario, M5H 3V5. GFK's head office is located at 14 - 3650 Hammonds Plains Road, Suite 348, Upper Tantallon, Nova Scotia, B3Z 4R3.
About Probe Metals:
Probe Metals Inc. is a leading Canadian gold exploration company focused on the acquisition, exploration and development of highly prospective gold properties. The Company is well-funded and controls a strategic land package of over 1,000-square-kilometres of exploration ground within some of the most prolific gold belts in Ontario and Quebec: Val d'Or, West Timmins, Casa-Berardi and Detour Quebec. The Company is committed to discovering and developing high-quality gold projects, including its key asset the Val-d'Or East Gold Project. The Company was formed as a result of the sale of Probe Mines Limited to Goldcorp on March 13, 2015. Goldcorp currently owns a 15% stake in the Company.
On behalf of Probe Metals Inc.,
Dr. David Palmer, President & Chief Executive Officer
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