Frontline Gold provides update on Red Lake Net Smelter Royalties
Frontline Gold Corporation has released an update on its Red Lake Net Smelter Royalties arising from the optioning of four Red Lake Property groups to Pacton Gold Inc., between November 2018 and October 2019. The optioning of these four Red Lake Property groups does not include other gold properties that Frontline owns 100% within the Red Lake Mining Division, Ontario.
In summary, the 4 option agreements to purchase entered into between Pacton and Frontline cover 262 mineral claims totaling approximately 4,900 Ha. Frontline retains net smelter return royalties ranging from 0.25% to 2.25% on all of the Red Lake properties optioned. The 4 option agreements, (summarized see Frontline press release dated May 21, 2020 ) are all in good standing with all scheduled cash and share payments per the option agreements' terms have been made.
In addition Pacton announced on May 27th, 2020 (see press release) that it had entered into a $2.16 MM financing package with Sandstorm Gold Ltd. Which primarily includes the purchase of royalties by Sandstorm on all of the Pacton mineral properties in Red Lake.
Frontline's President and CEO, Mr. Walter Henry, "These 4 option agreements and the associated NSR's puts the Company in a position to capitalize on the Red Lake Properties developments through Pacton's exploration programs and through Pacton's cash and share payments and the potential future net smelter return benefits. The option payments provide Frontline with working capital and funds to complete additional property acquisitions."
Summary and Description of NSR's:
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November 2018 - Pacton (see Pacton press release dated November 6, 2018) announces that it has entered into an option agreement to purchase 12 mineral claims strategically located between Pure Gold's Madsen and Wedge zone ground and Great Bear Resource's Dixie discovery in Red Lake area, Ontario ("Red Lake"). The claims are subject to net smelter return royalties ranging from 0.25% to 2.25%, half of which can be purchased by Pacton for $250,000.
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January 2019 - Pacton (see Pacton press release dated January 30, 2019) entered into an acquisition agreement with Frontline to acquire additional mineral claims in Red Lake. The property is comprised of 88 mineral claims totaling 1,760 Ha. The property is subject to net smelter return royalties totaling 2.25%. Pacton has the option to buy back a portion of the royalties for $250,000.
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February 2019 - Pacton (see Pacton press release February 26, 2019) to acquire an additional 12 mineral claims strategically located between Pure Gold's Madsen property, including the Wedge Zone, and Great Bear Resource's Dixie discovery. The property is subject to net smelter return royalties of 2.25%. Pacton has the option to purchase a portion of the royalties for $250,000 for each 0.25%.
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October 2019 - Pacton (see Pacton press release October 31, 2019) granted an option to acquire a 100% interest in 150 mineral claims known as the Gullrock Lake Property, located in the Red Lake. The Gullrock Lake Property acquisition increased Pacton's land position by 2,700 Ha in the Red Lake district. Frontline will retain net smelter return royalties ranging from 0.25% to 2.25% on the Property, half of which can be purchased by the Company for an aggregated payment of $1,000,000.
Commentary
"We will continue to provide more detailed information along with a corporate update in the very near term on all our properties, existing option agreements, and new option agreements entered into," said Walter Henry, CEO and President of Frontline.
Frontline is in discussions with various parties regarding property acquisitions and net smelter return royalties and news will be forthcoming.
About Frontline Gold Corporation
Frontline is a Canadian junior mineral exploration company. The Company's properties include the optioned gold projects in Red Lake area of Ontario, and Menderes gold project in the Izmir province of Western Turkey. Other Canadian exploration properties include other gold property groups in Ontario and include the Whitehorse Island Mining Patents.
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