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Avidian Gold unit to acquire Goethite Bay iron ore project from Altius Resources

Avidian Gold Corp.'s 73%-owned subsidiary High Tide Resources is on track to become a publicly listed company in Canada after it has agreed to acquire the Goethite Bay iron ore project in Newfoundland and Labrador through an option deal with Altius Resources Inc., a subsidiary of Altius Minerals Corp.

Altius has granted High Tide an exclusive option to purchase the project by spending at least C$2.0 million by Dec. 31, 2021, issuing 19.9% of its common shares immediately following cumulative equity financing of no less than C$5.0 million, and by becoming a publicly listed company in Canada within 24 months from the execution date, Avidian said Aug. 28.

Upon the acquisition, Altius shall receive a 2.75% gross sales royalty on all iron ore produced, removed, and recovered from the Goethite project.

High Tide has issued 9,146,666 common shares in its capital payable to arm's length parties as consideration for the assumption of the rights to the option, priced at 10 Canadian cents per share.

The project is located 17 kilometers northeast of the Carol Lake operations, but mineralization hosted on Carol Lake is not necessarily reflective of mineralization that may be hosted on the Goethite project.

The Goethite project formed a portion of an iron ore exploration joint venture between Rio Tinto and Altius that ran from 2008 to 2019, which subjected the project to advanced exploration techniques including airborne and ground geophysics and diamond drilling.

Significant iron mineralization was intersected in multiple drill holes, wherein one hole yielded 279 meters at 29.8% iron, including 157 meters at 31.9% iron, and 90 meters at 31.9% iron, during the 18 NQ diameter holes drilling in 2010, 2011, and 2012.