Victory Resources Corp (CSE:VR) (OTCMKTS:VRCFF) announced on Monday that it has struck an option agreement to acquire an 100% interest in Abitibi Royalties’ Hammond Reef South gold project, which adjoins Agnico Eagle's Hammond Reef gold project in northwestern Ontario.
"Hammond Reef South represents the first major advance in Victory's recently announced objective to embark on a significant gold, silver and precious metals acquisition strategy," said Victory Resources CEO David Lane in a statement.
The Hammond Reef South gold deposit adjoins Agnico Eagle's Hammond Reef Project, which contains an open pit measured and indicated mineral resource of 208 million tonnes grading 0.67 grams per tonne (g/t) gold (containing 4.5 million ounces of gold), as well as open pit inferred mineral resource of 0.5 million tonnes grading 0.74 g/t gold (containing 12,000 ounces of gold), using a cut-off grade of 0.32 g/t as of December 31, 2019.
"The Hammond Reef south property is immediately adjacent to this zone and may contain extensions of the Hammond Reef zone or parallel structures. Agnico has staked a large area which completely surrounds the property, suggesting they consider the area prospective," noted Victory geologist Helgi Sigurgeirson.
"A program of magnetometer and soil surveys, along with geological mapping and prospecting, is proposed with the purpose of locating zones of Hammond Reef style mineralization on the Hammond Reef South property," he added.
Terms of the agreement
According to the deal, Victory Resources may earn a 100% interest in the project subject to a 2% net smelter royalty payable to Abitibi Royalties. It is also contingent on receiving regulatory approval, by making a series of cash and share payments, including exploration commitments.
On signing the option agreement, Victory will give 500,000 shares and $50,000 in cash. On the one-year-anniversary it will provide 750,000 Victory shares and $75,000 cash. On the second anniversary, it will issue 1.5 million Victory shares and $150,000 in cash.
Vancouver-headquartered Victory Resources is advancing a project in south central British Columbia, Canada and is on the hunt for other opportunities for minerals in the clean energy sector.
Contact the author Uttara Choudhury at [email protected]
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