- Global Vanadium (GLV) has signed an option agreement with District Copper to acquire the Stony Lake East gold project in central Newfoundland
- Under the terms of the deal, the company may acquire a 75 per cent interest by paying a total of C$350,000 in cash, assuming $400,000 in exploration expenses and issuing 3.3 million common shares over a two-year period
- The remaining 25 per cent may then be acquired by paying a further $500,000 in cash and issuing two million common shares by the third anniversary of the agreement
- The Stony Lake East project covers a total of 13,625 hectares and includes eight mineral licenses
- Global Vanadium (GLV) is currently down 8.33 per cent and is trading at 44 cents per share
Global Vanadium (GLV) has signed an option agreement with District Copper to acquire the Stony Lake East gold project in central Newfoundland.
Located within the Cape Ray and Valentine Lake structural trend, the project consists of eight mineral licenses over a total of 13,625hectares.
According to the terms of the agreement, Global Vanadium may acquire an initial 75 per cent interest in the Stony Lake East project by paying to District Copper a total of C$350,000 in cash, assuming $400,000 in exploration expenses and issuing 3.3 million common shares.
These amounts will be made in various instalments from the date of signing until the second anniversary of such a date.
Global Vanadium will then be able to acquire the remaining 25 per cent stake, excluding any applicable net smelter return royalties, by paying to District Copper $500,000 in cash and two million common shares on or before the third anniversary date.
Pursuant to the terms of the deal, Global Vanadium has completed its first instalment, consisting of $75,000 in cash and 500,000 common shares at a deemed price of $0.19 each.
The Stony Lake East gold project covers 27 kilometres of the Cape Ray and Valentine Lake structural trend, from the Sokoman’s Moosehead discovery to the northeast and the Twilight zone to the southwest.
District Copper undertook a field program in 2019, which focused on prospecting, mapping and sampling in specific target areas, as well as a property-wide airborne magnetometer and radiometric survey.
The ground field work component of this work focused on the northern region of the property, primarily to expand known zones of gold mineralisation and identify promising new areas. The mineralisation in these zones remain open along strike.
Global Vanadium (GLV) is currently down 8.33 per cent and is trading at 44 cents per share at 2:05pm EDT.