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Home > News > Victory Resources signs...

Victory Resources signs agreement to acquire 100% of Hammond Reef South Project near Atikokan

Aug 10, 2020


Victory Resources Corporation has entered into an option agreement for Victory to acquire 100% interest in the Hammond Reef South Project, which adjoins Agnico Eagle's Hammond Reef Project near Atikokan.

"Hammond Reef South represents the first major advance in Victory's recently announced objective to embark on a significant gold, silver and precious metals acquisition strategy," said David Lane, President and CEO of Victory.

The Hammond Reef South Project adjoins Agnico Eagle's Hammond Reef Project, which contains an open pit measured and indicated mineral resource of 208 million tonnes grading 0.67 gpt gold (containing 4.5 million ounces of gold), as well as open pit inferred mineral resource of 0.5 million tonnes grading 0.74 gpt gold (containing 12,000 ounces of gold), using a cut-off grade of 0.32 gpt, as of December 31, 2019 (see Agnico Eagle news release dated February 13, 2020 for further information). An Amended Environmental Assessment was submitted in January 2018 and the project subsequently received environmental approval from both Federal and Provincial agencies (see notice of approval dated May 16, 2019 on Agnico Eagle's website).

"The Hammond Reef south property is immediately adjacent to this zone and may contain extensions of the Hammond Reef zone or parallel structures. Agnico has staked a large area which completely surrounds the property, suggesting they consider the area prospective," said Victory geologist, Mr. Helgi Sigurgeirson. "A program of magnetometer and soil surveys, along with geological mapping and prospecting, is proposed with the purpose of locating zones of Hammond Reef style mineralization on the Hammond Reef South Property."

Terms of the Agreement

Victory Resources may earn a 100% interest in the project (subject to a 2% NSR payable to Abitibi Royalties) and subject to receiving regulatory approval, by making the following cash and share payments, including exploration commitments:

Cash and Share Payments

  • Option Agreement Signing: 500,000 Victory common shares and $50,000 cash
  • Year 1 Anniversary: 750,000 Victory s common shares and $75,000 cash
  • Year 2 Anniversary: 1,500,000 Victory common shares and $150,000 cash

Exploration Commitments

  • On or Before Year 1 Anniversary: $100,000 ($25,000 firm commitment)
  • On or Before Year 2 Anniversary: $150,000
  • On or Before Year 3 Anniversary: $300,000


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