Vulcan Minerals Inc. (VUL) has entered into an option agreement with Sassy Resources Corporation (CSE:SASY).
Under the terms of the agreement, total aggregate consideration payable by Sassy to Vulcan is C$400,000 in cash over four years (C$100,000 payable immediately), exploration expenditures of C$2 million over four years (C$200,000 in year 1), and 2.5 million shares of Vulcan over four years.
Vulcan will retain a 3 per cent net smelter royalty (NSR) covering the 624 claims.
Sassy has the right to repurchase one-half of that NSR (1.5 per cent) for C$2,000,000 in cash and 500,000 common shares within one year following delivery of a Feasibility Report to Vulcan on any deposit advanced on the properties.
Vulcan had strategically staked eight properties for gold potential in central Newfoundland, where a staking rush occurred due to New Found Gold’s Corp’s very high-grade gold discovery at the Keats zone.
A drill permit application has been submitted to the provincial government about the Gander North property where compelling gold in till anomalies warrant testing.
Patrick Laracy, the President, noted, “We are very pleased to have a partner of Sassy’s quality with the exceptional team and resources to pursue the exploration of this land package."
"Given our equity exposure to Sassy as a result of this deal, our shareholders will have the leverage to Sassy’s other projects, including their gold-silver exploration in the Eskay Camp in British Columbia,” added Laracy.
It maintains its interest in the Red Cross Lake gold-nickel property adjacent to Marathon Gold Corporation in central Newfoundland and its copper-gold Springdale/Colchester property in north-central Newfoundland adjacent Maritime Resources Corp.
Vulcan Minerals is a precious and base metals exploration company based in St. John’s, Newfoundland.
It also holds 57 per cent of the shares in Red Moon Resources Inc. (TSXV:RMK), an active industrial minerals company in Newfoundland and Labrador.
Vulcan Minerals (VUL) is in the grey and is trading at C$0.075 at 1:54 pm EST.