Home > News > UrbanGold options Stargold...

UrbanGold options Stargold to Crest Resources

Feb 4, 2021

UrbanGold Minerals Inc. has signed an option agreement with Crest Resources Inc. where Crest has been granted an option to acquire a 100% interest in the Stargold project approximately 160 kilometres northeast of the Town of Val d'Or.

Pursuant to the terms of the Agreement, Crest shall have the right until the third anniversary of the Agreement to acquire 100% of UrbanGold's interest in the Claims (the "Acquisition") by:

(a) making a total cash payment of $25,000 to UrbanGold on the Closing Date (as defined in the Agreement); and

(b) issuing common shares in the capital stock of Crest (the "Option Shares") as follows:

(i) 400,000 Option Shares to UrbanGold on the Closing Date;

(ii) 400,000 Option Shares to UrbanGold within one year of the Closing Date;

(iii) 400,000 Option Shares to UrbanGold within two years of the Closing Date;

(iv) 1,250,000 Option Shares to UrbanGold within three years of the Closing Date.

A portion of the Claims are subject to a 1% net smelter returns ("NSR") royalty ("Existing Royalty"). Upon completion of the Option, UrbanGold will transfer a 100% stake in the Claims to Crest. At that time, Crest will grant a royalty to UrbanGold equal to 1% of the NSR on the Claims that are not subject to the Existing Royalty. 

UrbanGold is focused on advancing its Troilus-Frotet area properties where it has recently completed a drilling program (see UrbanGold's January 26, 2021 news release) immediately south of the Kenorland Minerals Ltd. Regnault gold discovery (see Kenorland's July 29, 2020 news release). Assay results for the UrbanGold drill program are pending.

About UrbanGold
UrbanGold Minerals Inc. is a precious metals exploration company with its activities focused on the Troilus-Frotet gold belt, Quebec. The Company specializes in project generation supported by substantial exploration expertise. The Company's common shares trade on the TSX Venture Exchange under the symbol "UGM".

About Crest Resources Inc.
Crest Resources Inc. is a British Columbia company listed on the Canadian Securities Exchange under the symbol CRES. Crest's principal business activity is the acquisition, exploration and evaluation of mineral property assets in Canada, Australia and Peru and the investment in mineral exploration companies and related mining technologies of merit. Crest's Canadian mineral property assets include various land and corporate ownership positions within the Exploits Subzone, the newest emerging district-scale gold exploration and mining district in the province of Newfoundland and Labrador.

Tags: Quebec / Deals & Financial / Gold / All Articles