- Ethos Gold (ECC) has signed a definitive agreement to option its Fuchsite Lake gold project in Ontario to CSE-listed Cross River Ventures
- Under the terms of the deal, Cross River will issue a total of C$300,000 in cash and two million common shares to Ethos, and will assume $2 million in exploration expenses
- Ethos will also retain a two per cent net smelter return royalty on the project, half of which may be purchased by Cross River for $1 million
- Following completion of the transaction, Cross River will hold a 60 per cent stake in the project, while Ethos will own the remaining 40 per cent
- Ethos Gold (ECC) is currently steady at $0.27 per share
Ethos Gold (ECC) has signed a definitive agreement to option its Fuchsite Lake gold project in Ontario to CSE-listed Cross River Ventures.
Under the terms of the staged deal, Cross River may acquire up to a 60 per cent stake in the project by issuing a total of C$300,000 in cash and 2 million common shares to Ethos. Cross River will also be required to assume at least $2 million in exploration expenses.
This consideration will be paid out in instalments according to the satisfaction of certain milestones over a four-year period.
Ethos will also retain a two per cent net smelter return royalty on the Fuchsite Lake Gold Project, half of which may be purchased by Cross River for a fee of $1 million.
Rob Carpenter, Chief Technical Advisor to Ethos Gold, said he looks forward to starting work at the project in the next several weeks in partnership with Cross River.
“The Fuchsite Lake claims represent a new greenfield fault zone gold target that has been overlooked and under-explored despite reasonable access and favourable rock types and alteration that commonly accompany large gold discoveries,” he added.
Located approximately 20 kilometres north of the town of Armstrong, the project covers roughly 3,750 hectares and features the Archean shear zone, which is thought to host gold within deformed and altered ultramafic and magic volcanic rocks.
This rock type is considered to be a major indicator of gold mineralisation, as seen in many world-class gold camps across Ontario and Quebec.
These shear zones extend for more than five kilometres along trend, and were originally discovered during regional mapping programs in the 1970s by the Ontario government.
However, the only recorded work in the area consists of five drill holes, no more than 40 metres deep, which focused on the Lett occurrence in 1981. No follow-up work has been carried out in the last 30 years.
John Fraser, President and CEO of Cross River Ventures, also commented on the option agreement.
“We’re very pleased to work with Ethos. The track record of their technical team is obviously impressive, and their involvement and endorsement of the project was a critical factor in Cross River’s decision to enter the earn-in agreement,” he said.
Ethos Gold (ECC) is currently steady at $0.27 per share, as of 3:17pm EDT.