GoldON Enters into Option Agreement with BTU Metals on Bruce Lake Property Southeast of Red Lake
Victoria, British Columbia--(Newsfile Corp. - March 23, 2021) - GoldON Resources Ltd. (TSXV: GLD) ("GoldON" or the "Company") is pleased to announce it has entered into an agreement with BTU Metals Ltd. (BTU) granting BTU an option to acquire up to an 80% ownership interest in GoldOn's Bruce Lake property (the "Property").
The Property is comprised of 152-cell mining claims covering 3,103 hectares (ha) and is located approximately 36 kilometres (km) southeast of the town of Red Lake in an underexplored area of the Uchi Greenstone Belt. (see Figure 1). Pursuant to underlying agreements on the Property, EMX Royalty Corporation will retain a 1.5% net smelter returns royalty, of which the companies may repurchase 0.75% for $400,000.
Under the cumulative terms of the agreement, GoldON shall receive cash payments of up to $75,000 and the issuance of up to 1,400,000 common shares of BTU, and BTU will incur qualified exploration expenditures on the Property of up to $1,000,000 within 36-months. BTU, at its discretion, may elect to stay at certain, fixed percentages over the course of the option at which time a definitive joint venture agreement will be entered into by the companies.
“This transaction is a win-win for both companies and enables us to retain an interest in any future exploration success at Bruce Lake,” said Mike Romanik president of GoldON. “This deal also allows us to focus on our other Red Lake properties including the drilling program in progress at our West Madsen Gold Project.”
About GoldON Resources Ltd.
GoldON is an exploration company focused on discovery-stage properties located in the prolific gold mining belts of northwestern Ontario, Canada. Our current project portfolio includes four properties in the Red Lake Mining Division (West Madsen, Pipestone Bay, McDonough and Bruce Lake) and a fifth property in the Patricia Mining Division (Slate Falls). GoldON is fully funded to complete the Phase II drilling program in progress at West Madsen.
For additional information: please visit our website at goldonresources.com, you can download our latest investor presentation by clicking here and you can follow us on Twitter at https://twitter.com/GoldONResources.
ON BEHALF OF THE BOARD
Signed "Michael Romanik"
Michael Romanik, President
GoldON Resources Ltd.
Direct line: (204) 724-0613
Email: info@goldonresources.com
Suite 108 - 800 Kelly Road, Suite 416
Victoria, BC, V9B 6J9