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GoldON Enters into option agreement with BTU Metals on Bruce Lake SE of Red Lake

Mar 25, 2021

GoldON Resources Ltd. has entered into an agreement with BTU Metals Ltd. granting BTU an option to acquire up to an 80% ownership interest in GoldON's Bruce Lake property.

The Property is comprised of 152-cell mining claims covering 3,103 hectares (ha) and is located approximately 36 kilometres (km) southeast of the town of Red Lake in an underexplored area of the Uchi Greenstone Belt. (see Figure 1). Pursuant to underlying agreements on the Property, EMX Royalty Corporation will retain a 1.5% net smelter returns royalty, of which the companies may repurchase 0.75% for $400,000. 

Under the cumulative terms of the agreement, GoldON shall receive cash payments of up to $75,000 and the issuance of up to 1,400,000 common shares of BTU, and BTU will incur qualified exploration expenditures on the Property of up to $1,000,000 within 36-months. BTU, at its discretion, may elect to stay at certain, fixed percentages over the course of the option at which time a definitive joint venture agreement will be entered into by the companies. 

"This transaction is a win-win for both companies and enables us to retain an interest in any future exploration success at Bruce Lake," said Mike Romanik president of GoldON. "This deal also allows us to focus on our other Red Lake properties including the drilling program in progress at our West Madsen Gold Project."

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