Durango Receives First Option Payment For Trove Durango Receives First Option Payment For Trove Windfall Lake Property
(via TheNewswire)
Vancouver, BC / TheNewswire / April 20, 2017 - Durango Resources Inc. (TSX.V-DGO, OTC: ATOXF, FSE:86A1), ("Durango") is pleased to announce that it has received the first option payment in relation to the option agreement (the "Agreement") with BonTerra Resources Inc. ("BonTerra") as announced on March 30, 2016 in relation to Durango's Trove Property located in the Windfall-Urban Gold Camp district of northern Quebec (the "Trove Property").
The Trove Property is surrounded by properties held by Osisko Mining Inc. (TSX: OSK) ("Osisko") and Beaufield Resources Inc. (TSXV: BFD) ("Beaufield"), and is a direct extension of the south west mineralized trend that BonTerra is currently exploring on its Gladiator Gold Deposit and Coliseum Gold Property.
Pursuant to the Agreement, BonTerra has paid its first payment of C$150,000 in cash and 1,500,000 BonTerra common shares as a first step to earning a 100% interest in the Trove Property from Durango. In order for BonTerra to earn a 100% interest in the Trove Property, it has to pay an additional $150,000 in cash and 1,500,000 BonTerra common shares on the first anniversary of the Agreement, and a further $200,000 in cash and spend a minimum of $1,000,000 in exploration expenditures on or before the second anniversary of the Agreement. If BonTerra fully exercises its option pursuant to the Agreement, Durango will retain a 2% NSR on the Trove Property.
Marcy Kiesman, CEO of Durango, stated "Durango is pleased with the transaction with BonTerra as it is providing capital to Durango without any dilution to shareholders. Durango recently acquired additional strategically located claim blocks in the Windfall Lake area, some of which are adjacent to Osisko and within a few kilometres of the Trove Property boundary. Durango plans to advance the Windfall East and West properties in 2017. Durango is positioning to finance exploration drilling programs on its projects with the recent and future cash and share deposits due to the Trove option agreement."
The Agreement has been filed on SEDAR under the profile of Durango at www.sedar.com.