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White Metal Signs Letter of Intent to Option the Tower Stock Gold Project, Northwestern Ontario
Thunder Bay, Ontario--(Newsfile Corp. - June 25, 2020) - White Metal Resources Corp. (TSXV: W...
About this update from Thunder Gold Corp.
[{"type":"text","content":"White Metal Signs Letter of Intent to Option the Tower Stock Gold Project, Northwestern OntarioThunder Bay, Ontario--(Newsfile Corp. - June 25, 2020) - White Metal Resources Corp. (TSXV: WHM) (\"White Metal\" or the \"Company\") is pleased to announce that it has signed a binding letter of intent (\"LOI\") with prospector Melvin Stewart (the \"Optionor\") in regards to the option acquisition of the Tower Stock Gold Project (the \"Project\" or the \"Property\"), located in Conmee Township about 40 km west-northwest of the port city of Thunder Bay, Ontario. The Project currently covers approximately 2,010 ha comprising both unpatented and patented mining claims.Under the LOI, White Metal has the option to acquire 100% of the Project subject to a 2% underlying royalty on some of the claims comprising the Property (the \"Underlying Royalty\") by issuing to the Optionor 1,200,000 common shares of the Company and making cash payments totalling $145,000 over a period of three (3) years. More specifically, details of the three year option are:On receipt of regulatory approval : $25,000 cash payment, issuance of 300,000 shares.1st Anniversary: $30,000 cash payment, issuance of 300,000 shares.2nd Anniversary: $40,000 cash payment, issuance of 300,000 shares.3rd Anniversary: $50,000 cash payment, issuance of 300,000 shares.The Optionor has reserved a 1% net smelter returns royalty on certain claims that are not in conflict with the Underlying Royalty and the Optionor will be given a 2% net smelter returns royalty on additional claims that the Company has staked (collectively the \"Optionor NSR\"). The Company has the right to purchase 50% of such Optionor NSR for $1 million and advanced royalty payments of $5,000 per year (payable in cash or shares of the Company at its option) are payable on the Optionor NSR commencing on the fourth anniversary of the LOI.Commented Michael Stares, President and CEO of White Metal, \"This is a great opportunity for the Company to explore an advanced-stage, drill-ready gold property in Ontario which has been dormant for some eight years. With excellent access and infrastructure, great geology, very encouraging intercepts of gold from historical drilling, and two historical mineral resource estimates, we begin our work on a strong foundation. Once initial data compilation, geo-modelling, and interpretation a...