Thunder Gold has entered strategic agreements to option significant interests in two properties, Seagull Lake and Startrek.
The company announced a binding LOI with Rift Minerals to option an 80% interest in the Seagull Lake property in Ontario and a DA to option a 100% interest in the Startrek property in Newfoundland.
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Under the LOI with Rift Minerals, a private company based in Thunder Bay, Ontario, Rift may earn an 80% interest in the Seagull Lake property.
The terms include a payment of C$10,000 ($7,317) in cash and the issuance of 250,000 common shares to Thunder Gold within five business days following regulatory approval.
Rift will also be required to make additional payments and share issuances on the first, second and third anniversaries of the closing date, culminating in a payment of C$50,000 and 250,000 common shares.
Furthermore, upon the declaration of commercial production, Rift will make five annual payments based on 20% of earnings before interest, taxes and amortisation (EBITA), proportional to their property interest.
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By GlobalDataThe agreement with Rift is contingent upon due diligence, the execution of a definitive agreement and any necessary regulatory approvals.
In a separate transaction, Thunder Gold reached a definitive agreement with Stares Contracting to option a 100% interest in the Startrek property.
Stares Contracting is obligated to complete exploration expenditures on various claims by specified dates, with the total expenditures amounting to more than C$200,000.
Additionally, Stares Contracting must issue one million common shares if it becomes publicly listed or if the interest in the property is transferred to a publicly listed entity.
A one-time cash payment of C$1m is also required upon achieving commercial production from the property.
Meanwhile, Thunder Gold disclosed that its chairman Dr Elliot Strashin is filing an early warning report indicating that he now holds more than 16% of the outstanding common shares of the company.
