xercise of the option, upon completion of a cash payment, will result in Dynasty acquiring 100% of Teck's interest in the Thundercloud gold property
Dynasty Gold acquires 100% Teck’s interest in the Thundercloud gold property in Ontario. (Credit: PublicDomainPictures from Pixabay)
Dynasty Gold Corp. (TSXV: DYG) (FWB: D5G) (OTC: DGDCF) (“Dynasty” or the “Company”) is pleased to announce that it has signed an Amending Agreement with Teck Resources Limited (“Teck”) whereby Dynasty will be deemed to have exercised its option, pursuant to an option agreement dated January 30, 2018 (see press release dated February 1, 2018), on the Thundercloud gold property (the “Property”). Exercise of the option, upon completion of a cash payment, will result in Dynasty acquiring 100% of Teck’s interest in the Thundercloud gold property (“the Property”), subject to Teck retaining a 2% net smelter returns royalty (“NSR”).
“We are delighted to have secured 100% of Teck’s interest in the Thundercloud property in one of the most desirable mining camps in Canada,” stated Ivy Chong, Dynasty’s President and CEO. “We appreciate Teck’s cooperation and support as well as that of all other stakeholders since signing the option agreement. We look forward to developing the project and building relationships with local communities for the benefit of all.”
Historic drilling on the Property intersected 14 g/t Au over 3 m including 192.7 g/t Au over 0.55 m. Other notable drill results include:
- 13.0 m @ 1.72 g/t Au
- 60.30 m @ 1.46 g/t Au
- 55.25 m @ 2.19 g/t Au, including 1 m @ 37.5 g/t Au, 9.34 m @ 7.91 g/t Au and 21.73 m @ 4.63 g/t Au
- 29.66 m @ 0.77 g/t Au including 9.04 m @ 2.20 g/t Au
- 68.8 m @ 1.55 g/t Au
- 81.0 m @ 1.31 g/t Au
The Thundercloud property is in the Archean Manitou-Stormy Lakes Greenstone belt in Ontario. The belt contains numerous gold showings, several large high grade mines discovered in the area, including the Big Master Mine (1902-1943) and the Laurentian Mine (1906-1909), as well as recent gold discoveries including New Gold’s Rainy River Mine (6.4 million oz gold and 18.7 million oz silver), and Agnico Eagle’s Hammond Reef deposit (5.8 million oz gold). Potential discoveries for Thundercloud include bulk-tonnage orogenic gold mineralization or high grade deposits.
Terms
In consideration of Dynasty being deemed to have exercised its option and Teck waiving its back-in right, the Company will make a $100,000 payment, and will pay $2,000,000 upon a production decision. Teck retains a 2% NSR that can be reduced to a 1.5% NSR for $1,000,000. The Company has also granted Teck the right to receive 40% of any net sale proceeds if the Property is sold or optioned within six years of signing the Amending Agreement.
Source: Company Press Release