Trillium Gold Mines (TSXV:TGM) has signed an option agreement to acquire a 100% interest in Bounty Gold Corp.’s Wenasaga Gold Property. The acquisition extends Trillium Gold’s dominant land position along the Confederation belt and is on trend with Kinross Gold’s LP Fault Zone of the Dixie Deposit. The Wenasaga Gold Property spans 1,692 hectares and is located 30 kilometres northeast of Ear Falls and 55 kilometres southeast of Red Lake, a prolific mining district.
Historical drilling at the property to the west and on strike along the crystal fault structure intercepted highly deformed, chloritic and carbonate altered green basic metavolcanic rocks. It contains similar regional geology to the Dixie Project; it is underlain with felsic intrusive and metasedimentary rocks in the north. Trillium Gold’s exploration program at the property will be focused on delineating the fault structure transecting the Wenasaga Gold Property.
The Option Agreement
Pursuant to the terms of the Agreement, in order to keep the option thereunder in good standing, Trillium is required to pay Bounty Gold an aggregate amount of Cdn $25,500 over a period of two years, issue an aggregate 64,500 common shares in the capital of Trillium over a period of two years, and grant to Bounty Gold a 2.0% Net Smelter Returns royalty on the claims comprising the Property upon exercise of the option. The Company has the right to repurchase 50% of the royalty (being 1.0%) by paying the holder an aggregate amount equal to $1,000,000. The Common Shares of Trillium Gold issued under the Agreement will be subject to a four-month holding period from the closing date. The Agreement is subject to the approval of the TSXV and other applicable regulatory authorities, as well as the approval of the Ontario Mining Recorder to extend the due dates for assessment work.
Source: Trillium Gold