CR Capital Corp. Options Mount Jamie North Property in Red Lake
CR Capital Corp. has entered into an option agreement with Bounty Gold Corp., a private company, to purchase a 100% interest in the Mount Jamie North property in Red Lake, Ontario. The Property consists of 30 mineral claims totaling 445 hectares located in Todd Township, Red Lake Mining Division, District of Kenora (Patricia portion), Northwestern Ontario.
The Red Lake greenstone belt is famous for high grade gold mineralization and has produced, from 1930 to the present, more than 25 million ounces of gold.
The Property occupies the trend of an interpreted fold structure that hosts significant mineral resources. Confederation Minerals Ltd. holds the Newman-Todd property and West Red Lake Gold Mines Inc. (“West Red Lake”) hosts the former producing Mount Jamie Mine and Rowan Mine, both of which lie along the same prospective structural feature.
The Mount Jamie #2 Shaft is situated approximately 300 meters along strike east of the Property boundary and was put down on the North Vein, an auriferous quartz vein showing extensive lateral continuity along strike. Three additional historic past-producing mines (West Red Lake’s Mount Jamie #1 Shaft, Rowan Mine and Red Summit Mine) are found along strike to the east, all of which are within West Red Lake’s regional Pipestone Bay-St. Paul's Bay Deformation Zone corridor that transects the Property. West Red Lake has interpreted five gold "trends", four of which (West Mount Jamie Trend, North Vein Trend, Golden Tree Trend and North Golden Tree Trend) are mapped as trending towards within several hundred meters of the eastern property boundary.
The Property occupies the boundary between the Balmer Assemblage (2.99-2.96 Ga) and the Ball Assemblage (2.94-2.92 Ga). Contacts between major metavolcanic assemblages in Red Lake have proven to be highly prospective, and most major gold deposits in Red Lake have been found within several hundred meters of similar contacts.
It is noted that geological information on the Property is limited and that the Qualified Person has been unable at this time to determine the significance of the above information. Accordingly, there is no assurance that the information is necessarily indicative of the mineralization on the Property.
Terms of the Option Agreement
Under the terms of the Option Agreement, CR Capital has the option to acquire a 100% interest in the Property by making the following cash payments and share issuances:
- An initial cash payment of $7,500 and issuing 150,000 common shares of the Company (“Common Shares”) by the seventh (7th) day following acceptance of the TSX Venture Exchange (the “TSXV”) (the “Closing”);
- A cash payment of $7,500 and issuing 150,000 Common Shares within 180 days after the Closing; and
- A cash payment of $10,000 and issuing 200,000 Common Shares within one year after the Closing.
CR Capital can, at its option, accelerate the cash payments and Common Share issuances described above. All Common Share issuances by CR Capital will be subject to a statutory 4-month hold period as per Canadian securities law.
In addition, CR Capital will pay a 2.0% Net Smelter Return royalty (the “NSR”) to the Vendor on commencement of commercial production. CR Capital will have the right, at any time and upon 30 days’ notice, to purchase 1.0% of the 2.0% NSR for $1,000,000.
In connection with the Transaction, CR Capital will pay a finder’s fee of 50,000 Common Shares to Michael Dehn, an arm’s length third party, who aided the Company in identifying the Property.
The information in this press release has been reviewed and approved by Trevor Boyd, P. Geo., and a Qualified Person for the technical information under NI 43-101 – Standards of Disclosure for Mineral Projects.
The Transaction contemplated above is subject to acceptance of the TSXV.
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