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News Update


Precious Metals Explorer Signs Option and Royalty Agreement for Quebec Property
News Update

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UrbanGold Minerals entered into a purchase option agreement with Northcore Resources for its 8,375-hectare Monaco property located 80 km south of Chibougamau, Quebec.

In a news release, UrbanGold Minerals Inc. (UGM:TSX.V) and Northcore Resources Inc. announced "the signing of an option agreement between the companies regarding the acquisition of the Monaco property (the Property)." The report indicated that the Monaco property is located in Quebec's Lower James Bay area and encompasses about 8,375 hectares consisting of 149 largely contiguous map-designated cells.

The terms of the property acquisition agreement require that upon signing Northcore Resources must make a $10,000 cash payment to UrbanGold Minerals. Northcore must then issue 2.8 million common shares of its capital and then make a second and final $10,000 payment to UrbanGold within a period of one year from the date the agreement was executed. After the completion of these requirements and listing of the Northcore shares on an exchange within one year of the signature, 100% ownership of the property will pass from UrbanGold to Northcore.

The firms reported that under the terms of the agreement Northcore will also be required to pay a 1.0% net smelter return (NSR) royalty to UrbanGold, but may reduce the royalty to 0.5% in exchange for a $1 million cash payment to UrbanGold. In addition, Northcore will be honoring a previously existing 1.0% NSR royalty to unnamed third parties.

The firm noted that the Monaco property covers a 20-kilometer segment along the Urban-Barry volcanic belt. The area is situated to the west and on-strike with the Windfall Lake gold project that the firm commented that in recent years has been the location of an unprecedented amount of successful exploration work. The company pointed out that Osisko Mining Inc. (OSK:TSX) and Bonterra Resources Inc. (BTR:TSX.V; BONXF:OTCQX; 9BR2:FSE) are both active in the area and have jointly drilled in excess of 1.3 million meters to date.

The company stated that the area the property is in has been subject to only very limited prospecting and no prior drilling. The firm noted though that it appears to cover the Urban-Barry "deformation zone" trend, which seems to control the gold mineralization.


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of UrbanGold, a company mentioned in this article.

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