Newrange Gold Corp. (NRG:TSX.V; NRGOF:OTC) announced in a news release it signed an option agreement to earn a 100% interest in Bounty Gold Corp.'s H Lake property, thereby expanding its property holdings in Ontario's Red Lake District.
"With this second option we have secured what we believe to be the most favorable geology in the northwestern part of the Birch-Uchi Greenstone Belt," Newrange CEO Robert Archer said in the release.
"Although the main iron formation has never been drill-tested, there is gold in the area and this geological setting is considered to be highly prospective for a new discovery. Given that we are now well financed through 2020, this will only add to the Company’s valuation as we continue to advance our flagship Pamlico Project in Nevada," Archer added.
H Lake encompasses 1,500 hectares and abuts the western edge of the Western Fold property that Newrange recently optioned. One portion of the folded iron formation is covered by both H Lake and Western Fold, and together they span the entire, 3,850 hectare iron formation package. Newrange will refer to the combined properties as the North Birch project.
As for the deal terms, to earn 100% of the H Lake property, Newrange will pay $50,000 in cash and issue 400,000 common shares to Bounty Gold, both in tranches over one year. Bounty will retain a 2% net smelter return royalty on the property, half of which Newrange may buy for $1 million.
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