The project area includes parts of the Net-Vermilion and Link Lake Deformation Zones, both of which have yielded significant gold values. Credit: Phawat/Shutterstock.

Solstice Gold has announced the acquisition of the Strathy Gold Project (SGP) in Ontario, Canada.

The company reached an option agreement with 1544230 Ontario and Gravel Ridge Resources, securing the option to purchase a 100% interest in the SGP.

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Under the agreement, Solstice is required to pay $20,000 (C$27,356) within ten days post the effective date and issue 750,000 common shares following approval from the TSX Venture Exchange (TSXV).

To fully exercise the option, Solstice must make additional cash payments totalling $85,000 across three anniversaries of the agreement.

Upon exercising the option, the Optionors will retain a 1% net smelter return (NSR) royalty on six claims, half of which can be bought out for $600,000.

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Additionally, a third party holds a separate 1% NSR on the Youngs claims, with buyout options of $500,000 for half and $800,000 for the remaining half.

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For the other claims, the optionors will hold a 2% NSR, with 1% buyable for $1m. No finder’s fees are associated with this agreement, which is still pending TSXV approval.

The SGP spans 45 claims in a region known for its gold prospectivity, underlain by the Archean-age Temagami Greenstone Belt, the southernmost extension of the Abitibi Subprovince in Ontario.

The project area includes parts of the Net-Vermilion and Link Lake Deformation Zones, both of which have yielded significant gold values in surface sampling and drilling, indicative of the gold-bearing potential typical of Abitibi gold systems.

Solstice CEO Pablo McDonald said: “Over the course of the last several months our technical team’s diligent work led us to acquire this highly prospective land package in the Abitibi Subprovince.

“This is in keeping with our acquisition approach: to secure dominant land positions with significant exploration potential in established Gold Districts. Extensive high grade gold mineralisation is documented over a wide area on Solstice claims, which we believe may be evidence of a larger mineralising system.

“The project area has only ever been explored piecemeal until now, and by assembling this land package we now intend to fast-track systematic exploration over our Strathy claims for the first time in their history.”