Delta Resources Announces Agreement to Buy Back up to 1% NSR at Eureka, (Delta-1) in Thunder Bay, Ontario
KINGSTON, ON / ACCESSWIRE / January 7, 2020 / Delta Resources Limited (« Delta » or the « Company ») (DLTA.V) is pleased to announce that it has signed an agreement with the Ontario Exploration Corporation (the « OEC ») to buy back a Net Smelter Return (« NSR ») of up to 1% on its Delta-1 property in the Thunder Bay District, Ontario. The Delta-1 Property includes the recently drilled Eureka Gold prospect.
Under the terms of the agreement, Delta now has the exclusive right to purchase 50% of the OEC NSR at Delta-1 by paying the OEC the sum of $50,000 payable as follows:
- Payment of $15,000 before December 31st, 2019 (already paid)
- Payment of $35,000 before May 31st, 2021.
Once Delta exercises its right to buyback the first 50% of the OEC NSR, Delta shall have the right to purchase the second 50% tranche at anytime by paying the OEC an additional $50,000. Following the purchase of the second 50% tranche, Delta will have purchased the entire NSR Royalty currently owned by the OEC on the Eureka Property.
The OEC currently owns between 0.5% and 1.0% NSR royalty on certain claims of the Delta-1 property. More specifically, the OEC owns a 1.0% NSR on the claims covering the Eureka Gold prospect, Matawin and Kaspar gold occurrences and a 0.5% NSR on the claims surrounding the Kaspar occurrence.
« This was a very important part of the puzzle for Delta as we continue to invest in exploration at Delta-1 » says André Tessier, President and CEO of Delta. « Delta would like to take the opportunity to thank the Ontario Prospector’s Association and the Ontario Exploration Corporation for facilitating this transaction ».
About Delta Resources Limited
Delta Resources Limited is a Canadian mineral exploration company focused on growing shareholder value through the acquisition of high-potential gold and base-metal projects in Canada, exploring these projects with state-of-the-art methods, and potentially developing these projects into mines.
Delta owns a 100% interest in the Bellechasse-Timmins gold deposit in southeastern Quebec, Canada which contains a 43-101 gold resource of 171,000 ounces at an average grade of 1.83 g/t gold in the indicated category and an additional 95,000 ounces at an average grade of 1.36 g/t gold in the inferred category (SGS Canada Inc., Bellechasse-Timmins Property Resource Estimate, Southeastern Quebec, August 1, 2012).
The company’s focus is currently to build a strong portfolio of mineral exploration properties with a high potential for economic discoveries in Canada while evaluating the long-term potential of its 100% owned Bellechasse-Timmins gold deposit in southeastern Quebec.
On October 3rd, 2019, Delta announced the acquisition of the Eureka Gold Discovery in the Thunder Bay area and on October 16th, 2019, the acquisition of the Delta-2 Property which hosts the R-14 Gold Prospect in the Chibougamau Mining District of Quebec.
In October 2019, Delta acquired the exclusive rights to earn a 100% interest in the Eureka Gold Discovery (Delta-1) in the Thunder Bay area of Ontario and in the R-14 (Delta-2) gold property in the Chibougamau area of Quebec. Delta carried out a drilling program at Eureka in early November. Results from this initial drilling are pending and expected in early January 2020.
ON BEHALF OF THE BOARD OF DELTA RESOURCES LIMITED.
Andre C. Tessier
President, CEO and Director
We seek safe harbor. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not approved nor disapproved of the information contained herein.
For Further Information:
Contact Delta Resources Limited
Frank Candido, Chairman
Andre Tessier, President and CEO
Cautionary Note Regarding Forward Looking Information
Some statements contained in this news release are » « forward looking information » within the meaning of Canadian securities laws. Forward looking information include, but are not limited to, statements regarding the use of proceeds of the non-brokered private placement and payment of the debt settlements. Generally, forward-looking information can be identified by the use of forward-looking terminology such as « plans », « expects », « is expected », « budget », « scheduled », « estimates », « forecasts », « intends », « anticipates », « believes » or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results « may », « could », « would », « might » or « will be taken », « occur » or « be achieved » or the negative connotation thereof. Investors are cautioned that forward-looking information is inherently uncertain and involves risks, assumptions and uncertainties that could cause actual facts to differ materially. There can be no assurance that future developments affecting the Company will be those anticipated by management. The forward-looking information contained in this press release constitutes management’s current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event.