Gold Line Resources completes acquisition of Oijärvi and Solvik gold projects

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VANCOUVER, BC, June 24, 2021 / CNW / – Gold Line Resources Ltd. (TSXV: GLDL) (“Golden line“or the”Company“) is pleased to announce that it has completed the previously announced asset purchase transaction pursuant to which Gold Line has acquired a 100% interest in Agnico Eagle Mines Limited (NYSE and TSX: AEM) (“Agnico“) Oijärvi gold project located in the center Finland and the Solvik gold project located in the south Sweden (collectively, the “Projects“) for an aggregate purchase price of $ 10 million composed of cash and shares of Gold Line and EMX Royalty Corp. (US NYSE and TSX-V: EMX) (“EMX“) (the “Transaction“). As part of the transaction, Agnico will retain a 2% net smelter yield (“RSN“) royalty on the Projects, of which 1% can be purchased at any time by EMX for US $ 1 million.

Adam cegielski, President, CEO and Director of Gold Line comments: “We are extremely happy to have concluded our transaction with Agnico for the Oijärvi and Solvik projects. These are district-wide opportunities in excellent mining jurisdictions, and we are now moving quickly to secure drilling permits for projects. We expect a very busy year for GoldLine as we work to advance our substantial portfolio in Sweden and Finland. We look forward to developing promising exploration results on these projects and strengthening the relationship with our strategic partners, EMX and Agnico. “

The Transaction was carried out under an asset purchase agreement dated March 19, 2021 (the “Agreement“) from the Company, EMX, Agnico, Agnico Eagle Finland Oy and Agnico Eagle Sweden AB.

The counterparty of the Transaction is $ 10 million, composed of US $ 7 million in liquid, US $ 1.5 million in ordinary shares of EMX (“EMX shares“) and 1.5 million US dollars in ordinary shares of Gold Line (“Gold Line Shares“), which must be paid to Agnico as follows:

Dated

Cash payments (USD)

EMX shares
(USD)

Gold Line Shares (USD)

Upon signing of the purchase contract

$ 750,000 (paid)

$ 375,000 (issued)

$ 375,000 (issued)

On the first anniversary of the purchase contract

$ 1,500,000

$ 500,000

$ 500,000

On the occasion of the second anniversary of the purchase contract

$ 1,750,000

$ 625,000

$ 625,000

On the occasion of the third anniversary of the purchase contract

$ 3,000,000

Total

$ 7,000,000

$ 1,500,000

$ 1,500,000

In addition, EMX will receive cash and stock payments from Gold Line as shown in the table below:

Dated

Cash payment
(USD)

Gold Line shares
(USD)

Upon signing of the purchase contract

$ 375,000 (issued)

On the first anniversary of the purchase contract

$ 250,000

$ 250,000

On the second anniversary of the purchase contract

$ 312,500

$ 312,500

Total

$ 562,500

$ 937,500

In connection with the Transaction, the Company paid a finder’s fee of 2% to two arm’s length parties, Fiore Management & Advisory Corp. and Winchester Securities Corporation, who helped facilitate the Transaction, for a total of approximately $ 200,000, which was paid for by issuing a total of 423,050 Gold Line shares equally between the two parties. These securities are subject to a holding period of four (4) months plus one day, expiring on 25 October 2021.

All Gold Line and EMX Shares issuable in connection with the Transaction are based on the volume weighted average price for the 20 trading days (the “20 day VTBI“) before the date of issue, with the exception of the first tranche, which was based on the VWAP 20 days before the date of entry into force of the Agreement, being CA $ 0.59 and CA $ 4,056, respectively, on March 18, 2021.

About Gold Line Resources Ltd.

Gold Line focuses on advancing gold projects with significant exploration potential in prolific gold producing regions Sweden and Finland. Gold Line operates in one of the world’s leading mining jurisdictions and emerging exploration frontiers due to its high mineral endowment, stable tenure, simple permits, favorable tax regime and landscape. favorable geopolitics.

Gold Line currently holds a potential portfolio of five gold exploration projects at Sweden: a project is in the Skelleftea belt of the center-north Sweden and four projects, including the Långtjärn property, are located in the North Central Gold Line mineral belt Sweden. The projects are located on a 200 kilometer Proterozoic greenstone sedimentary belt that hosts several gold showings and deposits.

On behalf of the Board of Directors of Gold Line Resources,

Adam cegielski
CEO and director

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements”. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Gold Line’s actual results, performance or achievements or developments to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements are statements which are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”. , “Believes”, “potential” and similar expressions, or that events or conditions “will”, “would”, “could”, “could” or “should” occur.

The forward-looking statements contained in this press release include, among other things, statements relating to expectations regarding the Transaction, Gold Line’s business, exploration and development plans after the completion of the Transaction, the results of the activities of Gold Line. exploration and development, the anticipated benefits and synergies. of the Transaction, and other statements which are not historical facts. Forward-looking statements are based on Gold Line and EMX’s current beliefs and assumptions about the outcome and timing of future events, including, but not limited to, that the Transaction will be completed as expected, and that the anticipated benefits and synergies of the transaction will be completed. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or other future events, to be materially different from results, performances. or future achievements expressed or implied by these forward-looking statements. These factors and risks include, among others: that there is no assurance that the Transaction will be completed as expected, or not at all, or that the anticipated benefits or synergies of the Transaction will be realized; after completion of the Transaction, Gold Line may require additional funding from time to time in order to continue operations which may not be available when needed or on acceptable terms; compliance with extensive government regulations; domestic and foreign laws and regulations could adversely affect Gold Line’s business and operating results; stock markets have experienced volatility that has often not been linked to company performance and these fluctuations can negatively affect the price of Gold Line or EMX securities, regardless of its operating performance; and the impact of COVID-19.

The forward-looking statements contained in this press release represent the expectations of Gold Line and EMX as of the date of this press release and, therefore, are subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely on such information as of any other date. Neither Gold Line nor EMX undertakes to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

SOURCE Gold Line Resources Ltd.

For more information: Email: [email protected], Telephone: 1-800-858-9710



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