Montoro signed a Property Acquisition Agreement with Falcon Gold Corp. (TSX.V: FG) to acquire a 51% interest in five claims comprising 109 cell units (approx. 2,250 hectares/5,559 acres) in the Red Lake mining district in Northwestern Ontario.
The claims are contained within the Birch-Uchi-Confederation Lakes greenstone belt which host the world-renowned Red Lake gold deposits and includes the Dixie project currently being drilled by Great Bear Resources Ltd.
The Camping Lake properties are located approximately 20 km southerly, of Great Bear Resources recent Dixie Lake high-grade gold discoveries. Great Bear Resources has recently reported exciting drill results with mineralized intersections commonly returning bonanza gold intersections in association with coarse visible gold grains.
Throughout 2010 to 2013 the Camping Lake property area saw extensive programs completed by Laurentian Goldfields Ltd., Kinross Gold Corporation, and Anglo Gold which included petrographic studies; diamond drilling; rock, soil, and lake sediment samples; IP/Ground Geophysics, etc.
Option Agreement Terms:
To earn a 51% interest, Montoro agrees to issue 1,000,000 million common shares upon TSX Venture Exchange (the “Exchange”) approval; and 500K shares on the first anniversary of Exchange approval. Montoro will also assume Falcon Gold’s payments totaling $65,000 over a four-year period.
Montoro also agrees to complete $100,000 in exploration expenditures – on or before October 31, 2020; and a further $200,000 (total $300K) in exploration on or before October 31, 2021. Any additional work completed in the first year will be credited to the 2nd year work commitment.
Upon Montoro acquiring the initial 51%, they have the option to acquire a further 24% interest (total 75%) for $500K in cash. The Agreement contains a 2% NSR, with the original vendor holding 1.5% and Falcon Gold 0.5%.