Business
Option Acquired on Pelangio Exploration's Grenfell Gold Property
Calgary, Alberta--(Newsfile Corp. - September 7, 2022) - Silk Road Energy Inc. (TSXV: SLK) rep...
About this update from Record Resources Inc
[{"type":"text","content":"Option Acquired on Pelangio Exploration's Grenfell Gold PropertyCalgary, Alberta--(Newsfile Corp. - September 7, 2022) - Silk Road Energy Inc. (TSXV: SLK) reports that Silk Road has acquired an option agreement on gold exploration properties held by a private exploration company and constitutes a non-arms-length transaction pursuant to an option agreement conveyed on September 6, 2022.The vendor of the option agreement on the gold properties is Record Gold Corp (\"Record Gold\"), an Ontario-based private exploration company. The transaction is a \"related party transaction\" as defined under MI 61-101 as Michael C. Judson is CEO, director and shareholder of Silk Road and President, director and shareholder of Record Gold. David Johnson is Corporate Secretary, director and shareholder of Silk Road and Corporate Secretary and shareholder of Record Gold. Dr. Paul Craig is a director and shareholder of Silk Road and a shareholder of Record Gold.The private company will exchange its option agreement with Pelangio Exploration Inc. (PX.V) in return for 40 million shares of Silk Road at a price of $0.05 per share. Following the transaction Silk Road will have 68,076,104 issued and outstanding shares.The Grenfell gold property is comprised of 38 mining cells and eight leased claims covering an area of approximately 6.7 square kilometres and is located approximately ten kilometres northwest of Agnico Eagle's Macassa Mine (2021 production: 210,192 oz gold) in Kirkland Lake Ontario. Grenfell is also located eight kilometres west of Record Gold's newly acquired Kenogami East (see August 10, 2022 news release)Following the conveyance of the option agreement to Silk Road, the option agreement with Pelangio will have the following terms:Record Gold has the right to earn an undivided 80% interest in Grenfell by completing a total of $2,000,000 in work costs or exploration expenditures to be incurred within five years and by making one-time cash payment to Pelangio.The work costs shall be completed in accordance with the following schedule: $250,000 must spent on the property twenty-four (24) months from the date of the signing of the Agreement; $500,000 on or before the third anniversary; $750,000 on or before the fourth anniversary; and, $500,000 on or before the fifth anniversary. In addition to the work costs associated with the earn-in agree...