Delta Resources has agreed to acquire full ownership of 11 claims on strike with the Eureka Gold Deposit in Canada from Metals Creek Resources (MEK).
Additionally, Delta has the option to fully own eight claims from Gold Cache (GC) by taking over an underlying agreement between MEK and GC.
This acquisition is poised to expand Delta's Delta-1 Property by approximately 233ha, with the claims situated in Horne and Dawson Road Lots Township.
Located west of the Eureka Gold Deposit in the Eastern Shebandowan Greenstone Belt, these claims host a number of gold occurrences.
Under the terms of the agreement, Delta will compensate MEK with $55,000 (C$76,509) and issue 1,250,000 common shares of Delta upon Toronto Stock Exchange (TSX) approval.
These shares will be vested in increments of 312,500 every four months post-issuance. Additionally, MEK will issue 425,000 of its own shares to Gold Cache, and Delta will make two payments of $20,000 to Gold Cache on 14 March 2025 and 14 March 2026, respectively.
Metals Creek president and CEO Alexander (Sandy) Stares said: “Making this deal with Delta allows Metals Creek to focus on our flagship Ogden Gold Project (50/50 JV with Newmont) and our Tillex Copper Project, where we have completed drilling with great success and [are] awaiting additional results.
“In addition, Metals Creek and its shareholders will remain exposed to Delta's success with the share holding and the NSR on these claims. We believe that Delta is best positioned with their commanding land package to advance this exciting portion of the Shabandowan greenstone belt and we are very pleased to be a shareholder of Delta into the future.”
Metals Creek will retain a 1% NSR on the claims. Delta retains the option to buy back half of this NSR at any time for $500,000 and will have the right of first refusal on the remaining 50% NSR, up to a maximum of $500,000.
The completion of this acquisition is contingent upon regulatory approval.
Delta Resources president and CEO André Tessier said: “Having already made a significant discovery at the Eureka Gold deposit, which remains open on strike and to depth, the Delta technical team is as keen on expanding the mineralised envelope at Eureka while it now sets its sights on furthering the potential of multiple gold deposits within this commanding land package.
“It is also noteworthy that Delta has no work commitments on the complete property package, allowing the team to focus where the data is pointing to areas of best potential. A potential that we are just starting to uncover.”
