Toronto, Ontario--(Newsfile Corp. - July 17, 2024) - Florida Canyon Gold Inc. (TSXV: FCGV) ("FCGI", or the "Corporation") announced today that it has entered into a binding agreement to sell its interests in the San Agustin mine, El Castillo mine, La Colorada mine, Cerro del Gallo project and San Antonio project (collectively the "Mexican Business Unit") to Heliostar Metals Ltd. ("Heliostar") (the "Transaction").

The sale of the Mexican Business Unit is the result of the Corporation's previously announced review of strategic alternatives and consistent with the Corporation's stated objective to leverage the value of its portfolio of assets and manage risk.

At closing, Heliostar will pay cash consideration of US$5 million to the Corporation. In addition, the Corporation is entitled to cash generated by the Mexican Business Unit prior to July 11, 2024 and cash of US$5 million generated from operating cash flow after July 16, 2024, subject to a minimum of US$2 million of net working capital being left in the Mexican Business Unit on closing. The Transaction represents an important step in positioning the Corporation to explore alternatives to maximize shareholder value in connection with its Florida Canyon mine, which will be the primary asset of the Corporation after the sale of the Mexican Business Unit is completed. see & read more on
https://www.newsfilecorp.com/release/216812/