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Delta Resources Expands Land Package at Delta-1 Property with Strategic Acquisition

Oct 29, 2024


Delta Resources Limited is pleased to announce the acquisition of a 100% interest in 11 mining claims from Metals Creek Resources Corp., along with the right to earn a 100% interest in an additional 8 claims held by Gold Cache Inc. (“GC”). This agreement positions Delta to further strengthen its foothold in the highly prospective Shebandowan Greenstone Belt, contiguous with its Delta-1 Property, located in Horne and Dawson Road Lots Townships.

 

The newly acquired claims, covering approximately 233 hectares, bring significant exploration potential to Delta’s property. The area, located to the west of Delta’s Eureka Gold Deposit, is rich in gold occurrences, including the Echo Zone, which has demonstrated impressive results such as 1.04 g/t gold over 18.7 meters in surface channel sampling, and 0.45 g/t gold over 21 meters in drilling. Additional highlights include the Gold Cache Main Zone, where a surface channel sample returned 29.4 g/t gold over 0.6 meters, with other grab samples ranging from 4.16 g/t gold to 50.1 g/t gold.

 

“Delta has been aggressive in its strategy to control the eastern Shebandowan Greenstone Belt,” said André Tessier, President and CEO of Delta Resources. “With each addition to our land package, we’re inching closer to our goal of controlling this gold-rich region. We’ve already made a significant discovery at the Eureka Gold Deposit, which remains open both on strike and at depth. Our team is eager to expand the mineralized footprint at Eureka while exploring the full potential of this commanding land package. What’s more, we have no work commitments on the entire property package, allowing us to focus our efforts where we see the greatest potential for new discoveries.”

 

The transaction allows Delta to bolster its exploration activities without the pressure of immediate work commitments, providing a strategic advantage in its exploration efforts. This acquisition adds to Delta’s impressive landholdings in an area with a proven track record of high-grade gold occurrences.

 

Alexander (Sandy) Stares, President and CEO of Metals Creek, commented: “This deal enables Metals Creek to focus on our flagship Ogden Gold Project, a 50/50 joint venture with Newmont, and our Tillex Copper Project. We’re excited to remain involved with Delta’s future success through both our shareholding and the NSR on these claims. Delta is well-positioned to unlock further value from the Shebandowan Greenstone Belt, and we’re pleased to support their efforts.”

 

Key Terms of the Agreement

 

As part of the agreement, Delta will pay $55,000 and issue 1,250,000 common shares to Metals Creek upon TSX approval. The shares will vest in four equal installments of 312,500 shares every four months following issuance. Additionally, Delta will make payments of $40,000 to Gold Cache in two equal installments on March 14, 2025, and March 14, 2026.

 

Metals Creek will retain a 1% Net Smelter Return Royalty (NSR) on the acquired claims, with Delta holding an option to buy back 50% of the NSR for $500,000 at any time. Delta also retains the right of first refusal on the remaining 50%, up to a maximum of $500,000. The claims are further subject to a 2% NSR tied to underlying agreements, of which Delta has the right to purchase 1% for $1 million.

 

The transaction is subject to regulatory approval, and with no work commitments attached, Delta is in a strong position to allocate resources and focus on high-priority targets.

 

About Delta Resources Limited

 

Delta Resources is focused on discovering gold and base metal deposits in Canada. The Company holds a 100% interest in the Delta-1 Property, located 50 km west of Thunder Bay, Ontario, and the Delta-2 Gold and Delta-2 VMS Properties, located near the Chibougamau mining district in Quebec.

 

With this latest acquisition, Delta is poised to continue advancing its exploration efforts in the highly prospective Shebandowan Greenstone Belt, with a goal to identify and expand high-grade gold deposits across its extensive land package.



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