Falcon Gold Corp. [FG-TSXV; 3FA-GR] has struck a joint venture deal with International Montoro Resources Inc. [IMT-TSXV, 04T1-FSE] that allows Montero to earn a 51% interest in five claim blocks, covering 2,200 hectares in the Red Lake mining district of northwestern Ontario.
The claims are situated within the Birch – Uchi – Confederation lake greenstone belt which hosts Newmont Goldcorp Corp.’s, [NGT-TSX, NEM-NYSE] Red Lake gold mine and includes the Dixie Project, which is currently being drilled by Great Bear Resources Ltd. [GBR-TSXV].
The Camping Lake properties are located approximately 20 km south of Great Bear’s recent Dixie Lake high-grade gold discoveries. Great Bear recently reported a series of high-grade targets with mineralized intersection commonly returning bonanza gold intersections in association with coarse visible gold grains.
From 2010 to 2013, the Camping Lake property area saw extensive work programs completed by Laurentian Goldfields Ltd., Kinross Gold Corp. [K-TSX; KGC-NYSE] and AngloGold Ashanti Ltd. [AU-NYSE; AGG-ASX; ANG-JSE], which included petrographic studies, diamond drilling; rock, soil and sediment samples and IP/ground geophysics.
“We were very fortunate to be able to tie this ground up in one of the most active exploration regions in Ontario,” said Falcon Gold CEO Karim Rayani.
To earn a 51% interest, Montoro will issue one million common shares upon TSX Venture Exchange approval; and 500,000 more shares on the first anniversary of exchange approval. Montoro will assume Falcon’s staged payment schedule of $65,000 over a four-year period.
Montoro has agreed to complete a $100,000, year one exploration work program, on or before October 31, 2020, and a further $200,000 in exploration on or before October 30, 2021. Any additional work completed in the first year will be credited to the second-year work commitment.
Upon exercising the option to earn an initial 51%, Montoro can acquire an additional 24% interest for $500,000 cash. The agreement is subject to a 2% NSR royalty, with the original vendor at 1.5% and Falcon at 0.5%.
Falcon Gold is an Americas-focused exploration company. In Ontario, its portfolio of projects includes the Central Canada gold, polymetallic project, the Wabunk gold, copper, nickel project, and the Burton gold property. Falcon also has an agreement to acquire 20,461 hectares within the Sierra de Las Minas District, Argentina, which has hosted several past producing gold, copper and silver mines.
International Montoro is an emerging resource company engaged in the acquisition, exploration and development of nickel, cobalt, and copper properties in Ontario and Quebec.
On Wednesday, International Montoro shares were unchanged at $0.045 and trade in a 52-week range of $0.03 and $0.085. Falcon Gold shares eased 12.5% or $0.005 to $0.03 on volume of 437,000. The shares are currently trading in a 52-week range of $0.02 and $0.06.