West Australian exploration company Olympio Metals has entered a binding letter of intent with Canada-based Bullion Gold Resources for an option to acquire up to an 80% stake in the Bousquet Gold Project on the Cadillac-Lake Larder Fault Zone in Quebec, Canada.
The project’s strategic location near the prolific Rouyn-Noranda gold-copper mining centre and the Bousquet Mining Camp positions it amidst some of the most productive mines in the area.
Bullion is divesting Bousquet to prioritise its large Bodo polymetallic project, giving Olympio the opportunity to explore a top gold region.
Under the terms of the agreement, the initial consideration includes C$100,000 ($70,052) in cash and C$50,000 worth of Olympio shares, to be completed within five business days after the formal option agreement is executed.
Deferred payments structured over eight years include cash and share components, with the potential for Olympio to accelerate these payments.
Notably, any shares issued will be subject to a four-month voluntary escrow.
Olympio retains the option to withdraw from the agreement at any stage, with a joint venture formed if it chooses not to continue after the third year.
The company is also obligated to make performance payments upon announcing a JORC gold resource with an average grade of at least 1.4 grams per tonne.
The payments are scaled based on the announced ounces, with a maximum payable amount for different ounce thresholds.
To exercise the option, Olympio must meet exploration expenditure commitments ranging from C$300,000 in the first year to a cumulative C$2m by the eighth year.
Olympio Metals managing director Sean Delaney said: “Acquiring the advanced Bousquet Gold Project presents a significant opportunity for Olympio to expand our exposure to one of the world’s premier gold-bearing structures – the renowned Cadillac Break.
“The project is strategically positioned between substantial gold deposits to the east and west, with numerous high-grade gold prospects featuring gold both at surface and in drilling. This makes Bousquet an exceptional exploration target.
The Bousquet Gold Project offers numerous drill-ready targets, with immediate plans to begin permitting for drilling at several prospects, including Paquin East and Decoeur.
Further work includes modelling of historical geophysical data and structural analysis for drill targeting.
