Acquisition of Vent d'Or
On March 4, 2013, we entered into an option agreement to earn a 100% undivided interest in the Vent d'Or property. Vent d’Or, which consists of 44 mineral claims covering an area of 2,461 hectares, is located southwest of the town of Chibougamau in the Druillettes and Hazeur Townships, in central Quebec. The claims are located on strike to the southwest of the Monster Lake Property gold discovery, recently made by TomaGold Corp. and Quinto Real Capital Corporation, who have reported drilling results of up to 42 g/t Au over 7.2 m.
A map showing the location and layout of the claims may be found in the Maps and Geology section for this property.
The Property has previously yielded numerous gold surface occurrences as well as gold intersections in shallow drill holes. Altered volcanics, shear zones and smokey quartz veins have been reported to occur on the Property. Surface grab samples from highly sheared, intensely altered volcanic rocks have returned values as high as 9.1 g/t Au while shallow drill hole intersections of smokey quartz returned up to 11.3 g/t Au over 1.3 m.
Under the terms of the option agreement, the Company is required to pay a total of $90,000 cash and issue 1,000,000 common shares to the optionor as follows – (i) an initial payment of $15,000 and 400,000 shares (completed on March 4 and 21, 2013, respectively); (ii) $30,000 and 300,000 common shares on or before June 1, 2014; and (iii) $45,000 and 300,000 common shares on or before June 1, 2015. In addition, the Company has agreed to grant a 2% NSR royalty to the optionor. The Company may acquire 50% of the NSR by making a payment of $1,000,000.