Canadian Orebodies has signed an agreement to purchase the Goodchild Lake mining property from Benton Resources.
The Property consists of 31 claim cells totaling approximately 500 hectares, and covers a prospective trend adjacent to the northwest portion of the Company’s 100% owned Black Raven Property. As consideration for the purchase, the Company will issue Benton 100,000 common shares in the capital stock of the Company and grant Benton a 1.5% net smelter returns royalty (“NSR”). The Company will have the option to buy-down 50% of the NSR at any time for the sum of $750,000. Closing of the acquisition is conditional upon the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange.
Additionally, the Company is pleased to report that it has staked a further 55 mining claim cells contiguous to the northeast portion of the Black Raven Property, which were staked to cover prospective geology based on initial prospecting in the area. Combined with the Property acquisition, these additions have increased the Company’s land holding in the immediate area to over 21,000 hectares.
The Company’s geological mapping and generative prospecting program has been underway since the beginning of June and is proceeding as planned. An update on the program and further field plans for the remainder of the year will be provided in the near future, once assay data has been received and compiled.
Source: Company Press Release