Delta Amends Band-Ore Gold Property Option with Golden Share in Thunder Bay
Delta Resources Limited announces that, at the request of the TSX Venture Exchange regulators, it has amended the option agreement announced on May 23, 2024 with Golden Share Resources Corporation ("Golden Share"). The objective of the amendment is to fix the absolute maximum number of shares that could possibly be issued by Delta to Golden Share by fixing the minimum price per share that Delta would issue as part of the agreement. The minimum price of the Delta shares was therefore fixed at $0.075 for a maximum possible issuance of 9,333,333 shares that could be issued to Golden Share.
On May 23, 2024, Delta announced that it was acquiring the exclusive rights to earn a 100% interest in the Band-Ore property (the "Property"). The Band-Ore property is located approximately two (2) kilometres west of the Delta-1 property which in turn lies 50 kilometres west of Thunder Bay.
The 10 kilometre long property covers approximately 2,115 hectares and comprises 16 patented mining claims, one mining claim lease, and 109 staked mining claims in Hagey and Conacher Townships of Ontario, on strike with the Delta-1 gold mineralization (see Figure 1). Both the Main Zone and the No. 4 Zone are open at depth and along strike.
The terms of the original agreement are as follows:
On signing: $100,000 in cash
Anniversary 1:$150,000 in cash and $100,000 in Delta shares
Anniversary 2:$150,000 in cash and $100,000 in Delta shares
Anniversary 3:$200,000 in cash and $100,000 in Delta shares
Anniversary 4:$300,000 in cash and $200,000 in Delta shares
Anniversary 5:$400,000 in cash and $200,000 in Delta shares
*All share prices are based on 20 day VWAP and as a function of the amendment announced herein, the minimum price of the shares to be issued by Delta is fixed at $0.075.
Golden Share will retain a 2% Net Smelter Return Royalty ("NSR"). Delta will have the option to buyback a 1.0% NSR at anytime for $3M and will have a right of first refusal on the second 1.0% NSR.
If Delta defines a NI-43-101 resource on the Property after earn-in, Golden Share will be entitled to a bonus of $500,000 for an estimate of 500,000 gold ounces up to 1,000,000 ounces and a bonus of $1,000,000 for an estimate of greater than 1,000,000 gold ounces. There are no work commitments on the property.
With this option, Delta now controls an area of 220 square-kilometres in the central-north portion of the Shebandowan Greenstone Belt, which includes the gold-endowed, crustal-scale Shebandowan structural zone that hosts Delta's Eureka Gold Zone.
"Delta is building a commanding land position in the Eastern portion of the Shebandowan Greentone Belt. We are very excited about putting all these pieces together in a highly prospective and under explored area where we believe that the potential for multiple deposits exists. We look forward to updating our shareholders and stakeholders with our plans to advance this growing land package," stated Andre Tessier, President and CEO of Delta Resources Limited.
Tags: Northern Ontario / Deals & Financial / Gold / All Articles