LaFleur Minerals Announces Option Agreement

Rhea-AI Summary

LaFleur Minerals Inc. (CSE: LFLR) (OTC Pink: WPNNF) has entered into an Option Agreement with Bull Run Capital Inc. to acquire a 100% interest in the Monarch Property, part of the Swanson Gold Project in Quebec's Abitibi Gold Belt. To exercise the option, LaFleur must:

• Issue 8,000,000 shares to the Optionor in two tranches
• Pay $800,000 in cash over one year
• Incur $2,500,000 in exploration expenditures over three years

Upon exercising the option, LaFleur will grant a 2% gross metals returns royalty. The company must also issue 4,000,000 additional shares if it announces an Inferred Mineral Resource Estimate of at least 500,000 gold equivalent ounces. The transaction is considered a "related party transaction" under MI 61-101, as the Optionor's principal is a LaFleur director.

Positive

• Acquisition of 100% interest in the Monarch Property, expanding the Swanson Gold Project
• Potential for significant gold resources in the Abitibi Gold Belt
• Structured payment and exploration commitments spread over three years

Negative

• Significant share dilution with potential issuance of up to 12,000,000 new shares
• Cash payment of $800,000 required within one year
• Commitment to $2,500,000 in exploration expenditures over three years
• 2% gross metals returns royalty to be granted upon option exercise

Vancouver, British Columbia--(Newsfile Corp. - September 24, 2024) - LaFleur Minerals Inc. (CSE: LFLR) (OTC Pink: WPNNF) ("LaFleur Minerals" or the "Company") is pleased to announce that it has entered into an Option Agreement (the "Agreement") with Bull Run Capital Inc. (the "Optionor") regarding the acquisition by the Company from the Optionor of the exclusive option (the "Option") to acquire a 100% interest in and to certain mining claims and a mining lease located in the Province of Quebec, collectively known as the Monarch Property (the "Property"). The Property forms part of the Company's Swanson Gold Project in the Abitibi Gold Belt near Val-d'Or, Québec.

Pursuant to the terms and conditions of the Agreement and in order to acquire a 100% interest in and to the Property, the Company must:

1. issue the Optionor an aggregate of 8,000,000 common shares in the capital of the Company ("Shares"), as follows:

1. an initial 4,000,000 Shares within fifteen (15) business days of the effective date of the Agreement (the "Effective Date"); and

2. a further 4,000,000 Shares on or prior to the one (1) year anniversary of the Effective Date;

2. pay the Optionor $800,000 in cash as follows:

1. an initial $250,000 within forty-five (45) days of the Effective Date; and

2. a further $550,000 on or before the date that is one (1) year from the Effective Date; and

3. incur an aggregate of at least $2,500,000 in exploration expenditures, as follows:

1. $400,000 of exploration expenditures by the date that is one year from the Effective Date;

2. $600,000 of exploration expenditures by the date that is two years from the Effective Date; and

3. $1,500,000 of exploration expenditures by the date that is three years from the Effective Date.

Following the Company's exercise of the Option the Company will grant the Optionor a two percent (2%) gross metals returns royalty on the Property. Additionally, the Company is required to issue the Optionor a further 4,000,000 Shares (the "Additional Shares") on or prior to the date which is thirty (30) business days following the date on which the Company announces an Inferred Mineral Resource Estimate (as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) of no less than 500,000 ounces gold equivalent on the Property and all adjoining mineral claims owned or over which the Company has the option to acquire in the Province of Québec. The obligation of the Company to issue the Additional Shares survives indefinitely following the Effective Date, however, the Company is not required to issue the Additional Shares in order to exercise the Option.

The Company's entry into the Agreement constitutes a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transaction ("MI 61-101") as the principal of the Optionor is Kal Malhi, a director of the Company. The Company is obtaining a valuation for the Property and its acquisition of the Option and the Property is subject to the Company's compliance with MI 61-101.

About LaFleur Minerals Inc.

LaFleur Minerals Inc. (CSE: LFLR) (OTC Pink: WPNNF) is focused on the acquisition and development of district-scale gold projects in the Abitibi Gold Belt near Val-d'Or, Québec. Our mission is to advance mining projects with a laser focus on our resource-stage Swanson Gold Project, which has significant potential to deliver long-term value. The Swanson Gold Project is over 15,000 hectares in size and includes several prospects rich in gold and critical metals previously held by Monarch Mining, Abcourt Mines, and Globex Mining. LaFleur has recently consolidated a large land package along a major structural break that hosts the Swanson, Bartec, and Jolin gold deposits and several others. The Swanson Gold Project is easily accessible by road with a rail line running through the property allowing direct access to several nearby gold mills, further enhancing its development potential.

LaFleur is currently acquiring high-resolution airborne geophysics (mag VLF-EM) to help identify mineralized structures at Swanson and completing detailed soil surveys and prospecting/geological mapping for the purpose of drill hole targeting with the goal to commence diamond drilling on several targets within the next several months.

ON BEHALF OF LAFLEUR MINERALS INC.

Paul Ténière, P.Geo.
Chief Executive Officer
E: info@lafleurminerals.com

LaFleur Minerals Inc.
1500-1055 West Georgia Street
Vancouver, BC V6E 4N7

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

Cautionary Statement Regarding "Forward-Looking" Information

This news release includes certain statements that may be deemed "forward-looking statements". All statements in this new release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/224381

FAQ

What is the Monarch Property that LaFleur Minerals (WPNNF) is acquiring?

The Monarch Property consists of certain mining claims and a mining lease located in Quebec, forming part of LaFleur Minerals' Swanson Gold Project in the Abitibi Gold Belt near Val-d'Or.

How much will LaFleur Minerals (WPNNF) pay to acquire the Monarch Property?

LaFleur Minerals will issue 8,000,000 shares, pay $800,000 in cash, and incur $2,500,000 in exploration expenditures over three years to acquire a 100% interest in the Monarch Property.

What royalty will LaFleur Minerals (WPNNF) grant after exercising the Monarch Property option?

After exercising the option, LaFleur Minerals will grant the Optionor a two percent (2%) gross metals returns royalty on the Monarch Property.

Why is the Monarch Property acquisition considered a related party transaction for LaFleur Minerals (WPNNF)?

The acquisition is considered a related party transaction because the principal of the Optionor, Kal Malhi, is a director of LaFleur Minerals.