STLLR Gold Announces Proposed Sale of Loveland Nickel Property to Loyalist Exploration

STLLR Gold Inc. (TSX: STLR) (OTCQX: STLRF) (FSE: O9D) has announced its intention to sell the Loveland Nickel Property, a non-core asset, to Loyalist Exploration Limited (CSE: PNGC) in a strategic move to focus on its core gold projects. The proposed transaction aligns with STLLR's long-term vision of advancing its Tower and Colomac projects to shovel-ready status within 36 to 48 months.

The Loveland Nickel Property, located 45 km northwest of Timmins, Ontario, is a strategic asset for Loyalist Exploration, providing exposure to the prolific gold district and enhancing the company's portfolio. The transaction includes an upfront cash payment of C$250,000, 7,000,000 Loyalist common shares, and a 2.0% net smelter returns royalty (NSR) with a 1.0% buyback option for C$1,000,000 (CPI adjusted). The parties are required to finalize a definitive agreement by March 31, 2025.

The proposed sale of the Loveland Nickel Property brings several strategic benefits to STLLR Gold, including:

1. Streamlining operations and focusing on core assets: By divesting the Loveland Nickel Property, STLLR Gold can allocate more resources and capital to its core gold projects, the Tower and Colomac Gold Projects, and the Hollinger Tailings Project.
2. Strengthening the balance sheet: The upfront cash payment of C$250,000 and the issuance of 7,000,000 Loyalist common shares will bolster STLLR Gold's financial position, providing additional working capital to fund ongoing operations and exploration activities.
3. Securing a net smelter returns royalty: The 2.0% NSR granted to Loyalist Exploration provides STLLR Gold with potential future cash flows and upside potential, should the property prove to be economically viable.
4. Aligning with the company's long-term vision: The sale of the Loveland Nickel Property allows STLLR Gold to concentrate on its long-term goal of bringing its Tower and Colomac projects to shovel-ready status, creating significant value for shareholders.

The proposed sale of the Loveland Nickel Property is a strategic move for STLLR Gold, enabling the company to focus on its core gold projects and create value for shareholders. The transaction aligns with STLLR Gold's long-term vision and provides the company with additional working capital and potential future cash flows through the net smelter returns royalty.