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Home > News > Stone Gold finalizes...

Stone Gold finalizes acquisition of projects in Batchewana Bay

Mar 11, 2021


Stone Gold Inc. has entered into an option agreement with current claims holders  to earn a 100% interest in certain mineral claims in Batchewana Bay, Ontario making up the East Breccia project and a second option agreement with current claims holders to earn a 100% interest in certain mineral claims making up the Tribag project.

Option Agreement Terms
        
East Breccia Option Agreement

Under the terms of the East Breccia Option Agreement, Stone Gold has the option to acquire a 100% interest in the East Breccia Project by making the following cash payments and shares issuances:

  1. cash payment of $15,000 on the day of acceptance of the transaction by the TSX Venture Exchange (the “Closing”);
  2. issuance of 200,000 common shares of the Company (“Shares”) by the 30th day following the Closing;
  3. cash payment of $25,000 and issuance of 200,000 Shares by the first anniversary of the Closing;
  4. cash payment of $35,000 and issuance of 200,000 Shares by the second anniversary of the Closing;
  5. cash payment of $40,000 and issuance of 100,000 Shares by the third anniversary of the Closing; and
  6. cash payment of $50,000 and issuance of 100,000 Shares by the fourth anniversary of the Closing.

To further maintain the East Breccia Option Agreement in full force and effect, Stone Gold shall also incur cumulative exploration expenditures on the East Breccia Project of $300,000 as follows: (1) $100,000 on or before the second anniversary of the Closing; (2) $100,000 on or before the third anniversary of the Closing; and (3) $100,000 on or before the fourth anniversary of the Closing.

Under the terms of the East Breccia Option Agreement, Stone Gold will pay a 2.0 % Net Smelter Return royalty (the “East Breccia NSR”) to the vendors on commencement of commercial production. Stone Gold will have the right, at any time until one year after commercial production to purchase 1.0 % of the 2.0% East Breccia NSR for $1,000,000.



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