X-Terra Resources (XTT) has entered an exploration and option agreement with a group of four prospectors to acquire up to 60% of an undivided ownership interest in 234 mining claims in the Eeyou Istchee/Baie-James territory, Québec, Canada.
This agreement was signed based on a letter of intent previously signed. These 234 mining claims form a part of the newly discovered Veronneau gold property.
The agreement is subject to customary closing conditions, including approval of the TSX Venture Exchange.
In 2015, geologists of Ministère de l'Énergie et des Ressources naturelles (Québec) discovered gold in this area when completing regional mapping of the property. Assay results returned 6.89g per tonne of gold.
Further channel sampling work was completed by the optioners on the Veronneau property during mid-2016, returning additional results of 2.39g per tonne Au over a width of 4.65m.
Further grab and channel samples were obtained by X-Terra throughout its due diligence process and returned positive results.
X-Terra president and CEO Michael Ferreira said: “The signing of the exploration and option agreement to have an option to acquire up to a 60% interest in the Veronneau property is a pivotal moment for X-Terra as it begins to lay its foundation in the James Bay area in the province of Québec.
“X-Terra’s strategy is to explore and develop the Veronneau discovery and build shareholder value.”
Under the agreement, X-Terra can earn up to 60% undivided ownership interest in the 234 mining claims by paying $250,000 in cash over three years, and issuing five million common shares to the optionors over four years. The deal also requires X-Terra to invest $3.5m in mining exploration within a four-year period.
After fulfilling all these requirements, X-Terra will enter a 60%-40% joint venture agreement with the optionors.
Under the exploration and option agreement, X-will also transfer and assign to the optionors 70 mining claims located adjacent to the Veronneau property against a consideration of $5,000.