- Brascan Gold (BRAS) has signed a letter of intent (LOI) with Quinlan Prospector’s Group respecting seven prospective gold properties in Newfoundland
- The option agreement will allow Brascan to earn a 100 per cent interest in the properties
- The properties cover a total of 13,125 hectares spread broadly across Newfoundland
- The letter of intent is expected to lead to a definitive option agreement between the two parties
- Brascan Gold Inc. was up to $0.225 with a gain of $0.045 or 25 per cent at 2:59 PM ET
Brascan Gold Inc. (BRAS), together with subsidiary Baie Verte Resources, has signed an LOI with Quinlan Prospector’s Group.
The LOI is in respect to a proposed option agreement over seven prospective gold properties in Newfoundland.
The properties cover a total of 13,125 hectares spread broadly across Newfoundland.
The option agreement will allow Brascan to earn a 100 per cent interest in the properties upon the completion of the following within 48 months of execution of the definitive agreement: (i) making aggregate cash payments to Quinlan in the amount of $281,000; (ii) issuing an aggregate of 2,100,000 common shares of the company to Quinlan or its nominee; and (iii) incurring an aggregate of $400,000 in exploration expenditures to fully complete an exploration program.
The share and cash payments will gradually increase over the term of the definitive agreement.
Upon signing the definitive agreement, Brascan intends to immediately conduct field programs including drilling to expand on the gold potential of the properties.
“Brascan is building a large portfolio of gold properties, carefully selected across Newfoundland,” stated Balbir Johal, CEO and Director of Brascan.
“The company has hired Full Circle Drilling Inc. to begin several drilling programs in the coming months.”
Harrison Cookenboo Ph.D., P.Geo. and a qualified person by the standards of Canadian National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein.
The company is a gold-exploration issuer that holds options over the Middle Arm Fault, Black Cat, Birchy Lake and Mountain Pond properties, located in the Baie Verte region of the North of Newfoundland and the Miguel’s Lake property, located in central Newfoundland. The company also holds an option over the Alegre project in Pará state in northeastern Brazil.
Brascan Gold Inc. was up to $0.225 with a gain of $0.045 or 25 per cent at 2:59 PM ET.