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Medallion Options the Amazing Grace Gold Property
Medallion Options the Amazing Grace Gold Property.
About this update from Gamma Resources Ltd.
[{"type":"text","content":"\n\n\n\nTSX-V: MDL\n\n\nVANCOUVER, Nov. 1 /CNW/ - Medallion (TSX.V: MDL) announces that it has\nsigned a Letter Agreement to option the Amazing Grace gold-exploration\nproperty, located 15 kilometres southeast of Castlegar, British Columbia. The\nproperty comprises 17 Crown mineral claims covering approximately 4867\nhectares (48.67 square kilometres). Forestry roads provide good access from a\nnearby paved highway.\n\n\nBulk-Tonnage Open-Pit Target - Medallion believes that the Amazing Grace\nsurface exposure of gold-bearing veins and altered wall rock holds the\npotential for a significant, easily accessible bulk-tonnage open-pit gold\ntarget. Free gold occurs with minor sulfide minerals in multiple vein\nsequences, which are spatially related to a regional, north-trending fault\nalong the west side of the property. Over four kilometres of this favourable\nstructure occur on the property. Numerous prospect pits expose at least two\nparallel sequences of gold-bearing veins that lie along an easily accessible\nridge top and vein dip slope, which is of significant size. One such sequence\nranges up to 75 metres in width with an open-ended strike-length of 150\nmetres.\n\n\nLetter Agreement and Option - The Letter Agreement requires that\nMedallion initially pay the vendor $2,500, for which the Company is granted a\n60-day due-diligence period. During the due-diligence period, the Company and\nthe vendor will complete a definitive Option-to-Purchase Agreement, which, at\nexecution, will require the Company to pay to the vendor $7,500 in cash and\nissue to him 50,000 common shares of Medallion at a deemed price of $0.50 per\nshare. In order to exercise the Option and acquire a 100% interest in the\nProperty, subject to a 2% Net Smelter Return royalty (NSR), Medallion must pay\nto the vendor, over a period of five years, an aggregate of $140,000 and issue\nto the vendor an aggregate of 150,000 common shares of Medallion. Of the 2%\nNSR royalty in favour of the vendor, 1% can be purchased by Medallion for $1\nmillion. Medallion must also perform $70,000 in work on the property during\nthe first year of the Option Agreement. The Option Agreement will be subject\nto the acceptance of the TSX Venture Exchange.\n\n\nMedallion will pay a finder's fee of $5,000 on the date that the TSX\nVenture Exchange accepts the Option Agreement and Fin...