Falcon Gold Proceeds Viernes Project for Porphyry Copper-Molybdenum Mineralization

Falcon Gold Corp said it has received final approval from TSX Ventures to advance an option to acquire the Viernes project 122 kilometers southeast of the city of Antofagasta, Chile, during which it will undertake the Viernes porphyry copper-molybdenum mineralization and gold-silver project. The company will issue 500,000 shares and make a minimum expenditure of $250,000 for an 80% interest in the project.

The Viernes project consists of 13 claim blocks covering 3,300 hectares adjacent to Yamana Gold's El-Peñón gold and silver mine. The company said the project offers a "tremendous opportunity to explore for potential mineralized, low- to moderate-sulfide gold-silver and porphyry copper-molybdenum mineralization in the Paleocene-Eocene belt, one of the largest mineral resources in South America."

As per its Memorandum of Understanding (MOU) signed on October 20, 2021, Falcon Gold has agreed to pay for shares, totaling 500,000 shares, and issue 500,000 stock purchase warrants over a four-year period. The company's CEO issued a letter to shareholders stating that he looks forward to a strong exploration season in 2022.

Each warrant will entitle the vendor to purchase one share of Falcon common stock for a period of 24 months at a purchase price set at 125% of the closing price on each issue date, weighted average - with a minimum of $0.10. During the four-year option period, Falcon will make a minimum expenditure of $250,000 on the gold-silver and porphyry copper-molybdenum mineralization. Upon completion of share payments and expenditures, Falcon will hold an 80% interest and the vendor will retain 20%.

Falcon will then have the exclusive right to purchase the supplier's 20% ownership interest in the property for an additional $1.5 million over a 30-month period, which includes a 1% net smelter return (NSR) buyback, with the supplier retaining 1% of the NSR.

Viernes includes 13 mines covering 3,300 hectares adjacent to Yamana Gold's El-Peñón gold and silver mine. Falcon added that since the 1990s, the region has produced 30.6 million tons of copper, 57 times the annual Canadian production. It has produced 9.2 million ounces of gold, 1.5 times the Canadian production, and 129.3 million ounces of silver, 8.6 times the Canadian production. It has also produced multiple discoveries.

Falcon Gold's flagship Central Canada Gold Project, located 20 kilometers southeast of Agnico Eagle's Hammond Reef gold mine, currently has estimated mineral reserves of 3.32 million ounces of gold (123.5 million tonnes grading 0.84 grams per tonne gold) and 2.3 million ounces of measured and indicated mineral resources (133.4 million tonnes grading 0.54 grams of gold).

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