Affinity Metals Corp. Enters into Option Agreement to Acquire Northline Gold Property Located in Ontario

Rhea-AI Summary

Affinity Metals (OTC:ARIZF) entered a three-year option agreement to acquire a 100% interest in the Northline Gold property in Ontario’s Patricia Mining Division, between the Red Lake and Pickle Lake gold camps.

To exercise the option, Affinity will pay $99,000 and issue 300,000 shares. The vendors retain a 1.5% NSR royalty, of which 0.5% can be repurchased for $500,000. Securities issued will be subject to a four‑month-plus‑one‑day hold period.

AI-generated analysis. Not financial advice.

Positive

• Option to acquire 100% interest in Northline Gold property
• Acquisition cost limited to $99,000 cash over three years
• Equity component capped at 300,000 common shares
• Right to buy back 0.5% NSR royalty for $500,000

Negative

• 300,000 new shares could dilute existing shareholders
• Vendors retain 1.5% NSR royalty on future production
• Four‑month‑plus‑one‑day hold period limits liquidity of issued securities

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Vancouver, British Columbia--(Newsfile Corp. - June 1, 2026) - Affinity Metals Corp. (CSE: AFF) (the "Company" or "Affinity Metals") announces that it has entered into a property option agreement to acquire a 100% interest in the Northline Gold property ("the Property") located within the Patricia Mining Division in the Province of Ontario, Canada.

The Property lies in the region between the Red Lake and Pickle Lake gold camps and is located approximately 10 kilometers south of the Golden Patricia Mine. This area within the southwestern extension of the Meen-Dempster Greenstone Belt is hosted within the Uchi Subprovince, one of the most metal-endowed Archean greenstone assemblages in the world with resources and past production now exceeding 65 million ounces of gold.

Figure 1- Northline Gold Project Map

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5458/299602_7f64e613540df930_001full.jpg

Terms of the Transaction

The Company has signed a three-year option agreement (the "Agreement") with Gravel Ridge Resources Ltd. and a private company owned by Perry English (the "Optionors") pursuant to which the Company may acquire a 100% interest in the Northline Gold property. In order to fully exercise its option and acquire the Northline Gold property, over a three year period the Company will pay an aggregate of $99,000 and issue 300,000 common shares of the Company. The Optionors will retain a 1.5% net smelter returns production royalty ("Royalty"). The Company or its assigns will have the right to purchase a 0.5% Royalty for $500,000, leaving the Optionors with a 1.0% Royalty. All securities issued in connection with the Agreement will be subject to a hold period expiring four months and one day from their date of issuance in accordance with the policies of the CSE and applicable securities laws.

About Affinity Metals Corp.:

Affinity Metals is focused on the acquisition, exploration and development of strategic metal deposits within North America.

The Company holds the 100% owned Regal high grade silver property located near Revelstoke, British Columbia and has also recently optioned the Discovery Lake property located near Sioux Lookout, Ontario.

ON BEHALF OF AFFINITY METALS CORP.

"Robert Edwards"
Robert Edwards, President & CEO

The Company can be contacted at: info@affinity-metals.com

Further information about Affinity Metals can be found on its website at: www.affinity-metals.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Statements

This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. The forward-looking statements in this news release are based on a number of key expectations and assumptions made by the Company as of the date hereof. Although the forward-looking statements contained in this news release are based on what the Company's management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such statements.

The forward-looking statements in this news release are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including those identified in the Company's most recent Management's Discussion and Analysis, which is available on SEDAR+ at www.sedarplus.ca. Readers, therefore, should not place undue reliance on any such forward-looking statements. These forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, The Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299602

FAQ

What did Affinity Metals (ARIZF) announce about the Northline Gold property on June 1, 2026?

Affinity Metals announced a three-year option to acquire a 100% interest in the Northline Gold property. According to Affinity Metals, the project lies between the Red Lake and Pickle Lake gold camps in Ontario within the Meen-Dempster Greenstone Belt of the Uchi Subprovince.

What are the financial terms of Affinity Metals’ option agreement for the Northline Gold property (ARIZF)?

The option requires total cash payments of $99,000 and issuance of 300,000 common shares over three years. According to Affinity Metals, these commitments allow full acquisition of the property while the optionors retain a 1.5% net smelter returns royalty on future production.

What royalty terms apply to the Northline Gold property in Affinity Metals’ (ARIZF) option deal?

The optionors keep a 1.5% net smelter returns royalty on production from the Northline Gold property. According to Affinity Metals, the company or its assigns can repurchase 0.5% of this royalty for $500,000, reducing the ongoing royalty burden to 1.0%.

Where is Affinity Metals’ Northline Gold property located and why is it significant for ARIZF investors?

The property is in Ontario’s Patricia Mining Division, about 10 km south of the Golden Patricia Mine. According to Affinity Metals, it sits in the Meen-Dempster Greenstone Belt within the Uchi Subprovince, a region with more than 65 million ounces of gold resources and past production.

How might the Northline Gold property option impact Affinity Metals’ (ARIZF) share structure?

Exercising the option will require issuing 300,000 common shares, increasing the company’s outstanding equity. According to Affinity Metals, all securities issued under the agreement will be subject to a hold period of four months and one day from issuance.

What is the timeline for Affinity Metals (ARIZF) to exercise its option on the Northline Gold property?

Affinity Metals has a three-year period to meet all option conditions and acquire 100% of the property. According to Affinity Metals, completing the staged cash payments and share issuance within this timeframe is required to fully exercise its option rights.