Eliminating Future Cash Payments and Work Commitments
Kingston, Ontario--(Newsfile Corp. - August 26, 2024) - Delta Resources Limited (TSXV: DLTA)(OTC Pink: DTARF) (FSE: 6GO1) ("Delta" or "The Company") is pleased announce that it reached an agreement with the original vendors of the Horne and Laurie properties at the Delta-1 property in Thunder Bay, Ontario. The new agreement will eliminate the future cash payments of $350,000 and work commitments of $1,000,000 over the next three years.
Under this new agreement dated August 22, 2024, Delta will acquire a 100% interest in both Horne and Laurie properties by issuing a total of 2,000,000 shares (25% of the shares will vest every 4 months from the date of issuance) and issue 1,500,000 warrants of Delta, at a price of $0.12, for a period of 24 months.
The vendors will retain Net Smelter Return Royalty ("NSR") on the properties. This NSR Royalty will be covered under the same agreement as the NSR Royalty on the original Delta-1 property option dated October 02, 2019 whereby the Vendors retain a 1.75% NSR Royalty on all three (3) properties. Delta will have a right to buyback a 0.75% interest until October 2nd, 2026 for $500,000 and the remaining 1.00% interest thereafter for the sum of $4,000,000. Delta also retains a right of first refusal on any offer to buy any NSR interest by a third party after October 2nd, 2026.
Under the Sky Gold and Delta agreement, dated April 30, 2024, Sky also retains a 1% NSR royalty with Delta having the option to buyback a 0.5% NSR at anytime for $1M and having a right of first refusal on the second 0.5% NSR.
Together, the properties consist of 113 claim units covering approximately 24 square kilometres. The claims are contiguous with the original Delta-1 property (see map figure 1).
The agreement is subject to regulatory approval.
"This is another strategic acquisition for Delta. The property package assembled in the Shebandowan Belt covers over 306 square kilometres of very prospective ground in the belt. With this agreement, none of the properties require any work commitments and minimal cash and share payments in the future. This provides Delta with enormous flexibility about where to spend its exploration dollars. Delta will therefore continue to grow the gold inventory at Eureka while exploring this expansive land package," said André Tessier, President and CEO.
Figure 1: Map showing the location of the Horne and Laurie properties relative to the Delta-1/Eureka Property and Delta's complete property package in the Shebandowan belt.
Daniel Boudreau, P.Geo. and Manager of Exploration at Delta Resources Limited, is a Qualified Persons as defined by NI-43-101 and has reviewed the technical information presented in this press release.
About Delta Resources Limited
Delta Resources Limited is a Canadian mineral exploration company focused on growing shareholder value through the exploration of two very high-potential gold and base-metal projects in Canada.
DELTA-1 is Delta's flagship project, where the company is building on a large gold inventory 50 kilometres west of Thunder Bay, Ontario, at surface and adjacent to the Trans-Canada highway. To date, the gold mineralization is defined over a strike length of 2.0 km, from surface to a vertical depth of 250 m. Highlights include drill intercepts such as 5.92 g/t Au over 31 m (incl. 14.8 g/t Au over 11.9 m), and 1.79 g/t Au over 128.5 m. The property covers 306 square kilometres where Delta has identified multiple corridors of intense alteration and deformation, on strike with, and to the south of the Eureka gold zone and that has yet to be thoroughly explored.
The DELTA-2 property covers 205 square kilometres in the prolific Chibougamau District of Quebec. The property holds excellent potential for gold-rich polymetallic VMS deposits as well as hydrothermal-gold deposits. Delta targets VMS deposits such as the LeMoine past producer where 0.76 Mt were mined between 1975 and 1983, grading 9.6% Zn, 4.2% Cu, 4.5 g/t Au and 84 g/t Ag.
ON BEHALF OF THE BOARD OF DELTA RESOURCES LIMITED.
We seek safe harbor. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not approved nor disapproved of the information contained herein.
For Further Information:
Delta Resources Limited Andre C. Tessier, CEO and President Tel: 613-328-1581 [email protected]
Cautionary Note Regarding Forward Looking Information
Some statements contained in this news release are "forward looking information" within the meaning of Canadian securities laws. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Investors are cautioned that forward-looking information is inherently uncertain and involves risks, assumptions and uncertainties that could cause actual facts to differ materially. There can be no assurance that future developments affecting the Company will be those anticipated by management. The forward-looking information contained in this press release constitutes management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event.
