Canada-based exploration and development company Ranchero Gold has completed an option agreement with Recharge Resources, acquiring a full interest in the Pinchi Lake Nickel Project in British Columbia.

Under the terms finalised in November 2023, Ranchero Gold agreed to issue 835,000 common shares to Recharge Resources.

The shares have now been issued, initiating a four-month hold period that will end on 13 July 2024. The transaction is pending final approval from the TSX Venture Exchange.

In addition to the share issuance, Ranchero Gold committed to a series of cash payments to Recharge Resources over the next three years.

These include C$25,000 ($18,531.62) by the first anniversary, C$2m by the second, and C$3m by the third anniversary of the agreement.

The option agreement also stipulates that Ranchero must fund exploration and development work on the property, amounting to C$1.2m before 30 November 2026.

The funding schedule for the exploration and development work is structured with specific milestones.

Ranchero is required to invest at least C$40,000 by 30 June 2024, followed by an additional C$60,000 by 30 November 2024, and C$100,000 by 30 November 2025.

Pinchi Project is a prospective nickel exploration, containing awaruite, a natural alloy consisting of around 75% nickel and 25% iron, with no sulphur content.

Previous exploration activities on the property include a comprehensive helicopter-borne survey and a geochemical sampling programme conducted by the prior property holder in 2011.

Recharge Resources carried out additional geochemical sampling in 2021, further establishing the project's potential.