Sokoman Minerals has entered into an option agreement with Trans Canada Gold, to allow the latter to earn a 100% interest in the 121 claim Crippleback Lake Gold property.

Under the terms of the potion agreement, Trans Canada is entitled to acquire 100% of Crippleback Lake by issuing 1,250,000 common shares of the company, along with commitments totalling $600,000 for four years.

Sokoman will retain 1% net smelter returns royalty (NSR) on the Crippleback Lake project, that covers an area of 3,025ha.  Trans Canada Gold has the right to buy down 0.5% of the royalty for $1,000,000.

Trans Canada president and CEO Tim Coupland said: “By acquiring this strategically located block of gold claims in Central Newfoundland in this modern-day gold rush, our geological team of gold experts is extremely excited about optioning and forming a strategic alliance with Sokoman Minerals in this option agreement.

“We will be submitting exploration permit applications immediately with the Government of Newfoundland and Labrador. Trans Canada is excited about the new addition of this premier gold exploration asset to our growing gold asset portfolio situated in Canada.”

The Crippleback Lake Gold project is located close to the Trans-Canada Highway in north-central Newfoundland, accessible by a network of secondary logging roads.

The property covers a 13km strike length of the gold-rich Valentine Lake Structural Zone midway between Marathon Gold’s Valentine Lake project and Sokoman Minerals high-grade Moosehead project.

The agreement, including the share issuance of Trans Canada Gold, is subject to TSX Venture Exchange approval.

Sokoman Minerals is a discovery-oriented company with projects in Newfoundland and Labrador, Canada.

The company’s portfolio of gold projects includes Moosehead, Crippleback Lake and East Alder, which is optioned to Canterra Minerals along the Central Newfoundland Gold Belt.

Sokoman has also recently acquired district-scale Fleur de Lys project in northwestern Newfoundland, which is targeting Dalradian-type orogenic gold mineralisation.