Silver Range Resources has signed a letter of intent (LoI) for the acquisition of GGL Resources' providence greenstone belt (PGB) project in the Northwest Territories (NWT), Canada.

The project comprises a 140km long by 10km-30km wide belt and is located 250km northeast of Yellowknife and 80km west of the Ekati Mine.

It comprises ultramafic and mafic volcanic rocks capped by turbidites, which are metamorphosed to greenschist and lower amphibolite facies.

Silver Range Resources president and CEO Mike Power said: “Acquisition of the gold and base metal prospects within the PGB project is a milestone step for Silver Range as it strives to become one of the major explorers in NWT and Nunavut.

“The PGB project is an excellent complement to Silver Range’s very prospective gold projects in the Ennadai-Rankin Greenstone Belt of Nunavut.”

"The PGB project is an excellent complement to Silver Range’s very prospective gold projects in the Ennadai-Rankin Greenstone Belt of Nunavut."

The agreement will see Silver Range make a payment of $1.03m and issue 1,000,000 common shares to GGL to earn the right to explore the project for all metals and minerals, except diamonds.

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The payment includes $33,200 to be paid on signing of a binding LoI, and a further $1m milestone payment after the completion of a positive preliminary economic assessment related to the project.

Silver Range will need to undertake a survey of certain mineral claims in order to convert them to mining leases, in addition to making mining lease payments for the entire project for a period of at least one year.

Additionally, the company will be required to make annual mining lease payments for the site.

The ownership of the PGB project and the exploration camp located within it will remain with GGL, which also reserves the right to explore for diamonds.

Silver Range will offer a 1% net smelter return royalty (NSR) to GGL on any production created from the deposits it discovers within the project.

However, Silver Range has the option to repurchase 50% of the NSR for a sum of $1m.