Delta options Band-Ore property and expands land position in Thunder Bay

Delta Resources Limited (TSXV: DLTA) (OTC PINK: DTARF) (FSE: 6G01) ("Delta" or "The Company") is pleased announce that it has entered into an agreement with Golden Share Resources Corporation ("Golden Share") acquiring the exclusive rights to earn a 100% interest in the Band-Ore property (the "Property"). The Bandore property is located approximately two (2) kilometres west of the Delta-1 Property which in turn lies 50 kilometres west of Thunder Bay, Ontario. The Property hosts two historic high-grade gold resources that are not considered National Instrument 43-101 compliant1.

TABLE 1: Band-Ore Historical Resources

The 10 km 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.

André Tessier, President, and CEO commented: "This is an important acquisition for Delta, adding another 21 square kilometres of very prospective ground to our Delta-1 property but also adding to Delta's growing gold inventory in the area. Delta's team is looking forward to applying its exploration criteria to this new property."

The terms of the 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.

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 152 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.

Tags: Northern Ontario / Deals & Financial / Gold / All Articles