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O3 Mining Acquires Chalice Gold Mines Pursuant to Purchase Agreement

O3 Mining Inc. takes great pleasure in announcing that it has acquired, as informed previously, Chalice Gold Mines (Québec) Inc., in accordance with the terms of a share purchase agreement dated July 2nd, 2019, between O3 Mining and Chalice Gold Mines (Ontario) Inc.

As per the Purchase Agreement, the Corporation secured Chalice Gold Mines (Québec) Inc. in exchange for (i) 3,092,784 common shares of the Corporation (collectively, “Consideration Shares”), which were given at an estimated value of C$3.88 per common share, for total share consideration of C$12 million; and (ii) a 1% net smelter returns royalty on all of the obtained claims that were not conditional on a pre-existing royalty (the “Transaction”).

Chalice Gold Mines (Québec) Inc., the registered holder of the East Cadillac and Kinebik Gold Projects in Québec, Canada, also possesses the underlying option agreements on the East Cadillac Gold Project with Globex Mining Enterprises Inc. and Renforth Resources Inc.

Due to the completion of the Transaction, Chalice Gold Mines (Québec) Inc. has become a 100% owned subsidiary of O3 Mining.

Pursuant to the limitations under Canadian securities laws and conditional on some exclusions, Chalice Gold Mines (Ontario) Inc. will have to restrain from trading the Consideration Shares for a period of four months from the date hereof.


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