Plato Gold acquires Good Hope niobium project in Ontario

29 August 2019 (Last Updated August 29th, 2019 12:06)

Exploration company Plato Gold has acquired 100% ownership of the Good Hope niobium project in Ontario, Canada, after it met the terms of two option agreements.

Exploration company Plato Gold has acquired 100% ownership of the Good Hope niobium project in Ontario, Canada, after it met the terms of two option agreements.

In May 2017, the company signed KL226 and KL37 option agreements to acquire 100% interest in the project.

The niobium project comprises 19 claims, 263 claim units and 4208ha in Killala Lake area and Cairngorm Lake area townships, to the north-west of Marathon, Ontario.

To meet the terms of the KL226 agreement, Plato paid $106,600 and issued 7.5 million common shares, while the company made a total payment of $2,000 and issued 1.6 million common shares towards the KL37 agreement.

Plato Gold CEO Anthony Cohen said: “I am also very pleased to announce our continuing work on the project with both Dr Rudy Wahl, the discoverer of the project and Dr Roger Mitchell, one of the world’s foremost experts on carbonatite rocks and niobium.

“With our world-class team of experts, I am looking forward to further development of the Good Hope Niobium Project releasing further news of its continuing development when we have completed important work.”

In addition, exploration expenditures of $400,000 on the KL226 and KL37 properties exceeded with a total of $1.1m exploration work, completed as of June.

Under the KL226 and KL37 option agreements, Plato will provide a 3% net smelter return (NSR) royalty with conditions that the company has the right to buy back 50% of the royalty for $1.5m.

The company holds a portfolio of properties in Northern Ontario and Santa Cruz, Argentina.