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Gold Line Resources Closes Acquisition of Oijärvi Exploration Licence

Gold Line Resources Closes Acquisition of Oijärvi Exploration Licence

VANCOUVER, BC, January 25, 2021 /CNW/ – Gold Line Resources Ltd. (TSX-V: GLDL) (OTCQB: TLLZF) (“Gold Line”) (the “Company” or “Gold Line”) is pleased to announce the closing of the previously announced acquisition of the Oijärvi exploration reservation (the “Oijärvi Reservation”), located in Finland (the “Transaction”), pursuant to a purchase and sale agreement dated April 1, 2019 (as amended, and as further amended by an agreement dated December 31, 2021, together, the “Agreement”) among the Company, Eurasian Minerals Sweden AB (“EMSAB”), Viad Royalties AB (“VRAB”, and together the “Sellers”, both of which are wholly-owned subsidiaries of EMX Royalty Corp. (“EMX”).

The acquisition of the Oijärvi Extension from EMX, will add approximately 16,000 hectares (ha) to the Company’s land position within the Oijärvi Greenstone Belt which, along with the Company’s 2021 acquisition of the Oijärvi Gold Project (or the “Project”) from Agnico Eagle Mines Ltd. (“Agnico”)  (see GLDL news release dated March 22, 2021) will establish Gold Line as the largest land package holder in the region, as well as the 100% controlling interest holder of the Oijärvi Greenstone Belt, an emerging gold belt in Finland.

In consideration for the acquisition of the Oijärvi Reservation, the Company has agreed to: (i) reimburse EMSAB for CDN$30,000 representing certain costs associated with the Oijärvi Reservation; (ii) issue 1,125,000 common shares (the “Consideration Shares”) to EMX within 15 business days of the closing date (being December 31, 2021, the “Closing Date”), subject to final approval of the TSX Venture Exchange (the “Exchange”); (iii) grant the Sellers an uncapped 3% net smelter return royalty (“NSR”), subject to a purchase right in favour of the Company exercisable within six years from the Closing Date to acquire 1% of the NSR (resulting in the Sellers holding a 2% NSR); and (iv) pay the Sellers annual advance royalty (“AAR”) payments of 30 ounces of gold commencing on the second anniversary of the Closing Date, with each AAR payment increasing by five ounces of gold per year up to a maximum of 75 ounces of gold per year.  In addition, the Oijärvi Reservation will be held by the Sellers, in trust for the Company, until such time as the Oijärvi Reservation has been converted into an exploration permit application (the “Exploration Permit Application”) registered in the name of Gold Line or an affiliate thereof. While holding the Oijärvi Reservation and the Exploration Permit Application in trust for Gold Line, the Company will have the right to conduct exploration and development activities on or with respect to the project area, for purposes of determining viability of the project.

The Consideration Shares will be subject to a hold period of four months plus one day.

The Company believes that the Oijärvi Extension will be a highly prospective addition to the Gold Line portfolio, and that the relatively low amount of exploration within the Belt to date could result in significant upside potential for Gold Line.  This is a rare opportunity for a single company to be able to control the entirety of an underexplored, yet highly prospective, greenstone belt. The Company plans to develop a robust exploration program within the region and build upon the promising data available to date.

“We have acquired 100% of an underexplored Greenstone belt in Finland which is one of the best places in the world to be exploring for gold.  The project has been meticulously maintained by Agnico Eagle for over a decade, with no other junior company to have touched the ground. The Company is incredibly well positioned with district scale projects in both Sweden and Finland, and an exciting work plan for 2022,” commented Adam Cegielski, Gold Line’s CEO.

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Cautionary Note Regarding Forward-Looking Statements

This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the terms and conditions of the Arrangement, timing for the hearing for the final order of the Supreme Court of British Columbia to approve the Arrangement and the timing and ability of Gold Line to complete the Arrangement. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflect Gold Line’s respective management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Gold Line believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of Gold Line. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to obtain necessary approvals in respect of the Arrangement, the ability to consummate the Arrangement,; the ability to obtain requisite court approvals and the satisfaction of other conditions to the consummation of the Arrangement on the proposed terms and schedule; the potential impact on exploration activities; the potential impact of the announcement or consummation of the Arrangement on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; the re-rating potential following the consummation of the Arrangement; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time on the Arrangement. This forward-looking information may be affected by risks and uncertainties in the business of Gold Line and market conditions. This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by Gold Line with the Canadian securities regulators, including Gold Line’s financial statements and related management’s discussion and analysis for the financial year ended December 31, 2022 and its interim financial reports and related management’s discussion and analysis for the period ended September 30, 2023 filed with the securities regulatory authorities in certain provinces of Canada and available at

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Gold Line has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

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