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Storm Exploration has signed an option agreement with Prospector Metals to earn up to 100% in the latter’s Toogood Gold Project on New World Island, approximately 65km north of Gander, Newfoundland, Canada.

Under the agreement, Storm can earn up to a 100% interest in the Toogood Gold property in two options.

As part of the initial option, Storm can earn a 55% stake in the project in exchange for paying $10,000 (C$13,479) in cash within 90 days of the option agreement execution and issuing four million Storm Exploration shares to Prospector in phases.

Storm will also incur exploration expenditures of up to $3.5m at the property over a period of 36 months.

To exercise the second option and earn the remaining stake in the project, Storm will issue 19.9% of its non-diluted share capital or $12m worth of Storm shares, whichever is less, to Prospector.

Covering an area of 11,825 hectares, the Toogood Project lies at the north-east extent of the Exploits Subzone, which is said to be a major structural corridor in central Newfoundland.

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Strom said that the project’s gold mineralisation is hosted by a suite of Devonian felsic dykes. 

The gold mineralisation at the property is associated with arsenopyrite, pyrite, trace chalcopyrite and fine-grained native gold.

Storm president and CEO Bruce Counts said: “The Toogood Gold Project is an exceptional opportunity for Storm.

“The drill-confirmed high-grade gold at the Quinlan Zone underscores the potential for the discovery of a multimillion-ounce gold deposit. In addition, plans and permits are in place to expand and extend mineralisation at the Quinlan Zone, allowing Storm to begin advancing the project quickly.”

Storm is planning to undertake a two-pronged exploration approach on the Toogood project, including drilling and target generation.