- Romios Gold Resources (RG) has signed a letter of intent (LOI) to sell an 80 per cent stake in its five claim blocks in the Thunder Bay silver district
- The agreement for the properties in northwestern Ontario is with Honey Badger Inc
- Romios acquired the five claim blocks by online staking over the past year
- The five blocks consist of 87 cell claims covering 1869.5 hectares or 4619.7 acres
- Romios Gold Resources is down 10.00 per cent on the day, with the company’s shares trading at $0.045 at 9:52 am ET
Romios Gold Resources (RG) has signed a Letter of Intent (LOI) to sell an 80 per cent stake in its five claim blocks in the Thunder Bay silver district.
The agreement for the properties in northwestern Ontario is with Honey Badger Inc.
Romios acquired the five claim blocks by online staking over the past year.
They cover five historic silver prospects: the former Victoria, Federal and Lily of the Valley silver mines, and the Cariboo and Cloud Bay prospects.
The five blocks consist of 87 cell claims covering 1869.5 hectares or 4619.7 acres.
The three past producing properties have been largely unexplored by modern methods. There is no record of any modern exploration efforts being used to trace these veins along strike.
Honey Badger owns some of the larger former producers on the mainland in the Thunder Bay camp, including the Beaver Mine, and has large holdings immediately adjacent to the former Silver Mountain deposits.
The Romios management team believes the sale of a majority interest in the silver prospects to Honey Badger significantly increases the commercial potential of the prospects. Honey Badger’s numerous silver assets in the district provide a greater opportunity to eventually sustain a central mill that could process ore from the numerous prospects concentrated in the area.
By retaining a 20 per cent interest in its claims, Romios maintains exposure to the potential production from these prospects.
The terms of the LOI form the basis for a definitive agreement between Romios and Honey Badger expected to be signed by July 30, 2021.
In consideration for an 80 per cent interest in the five claim blocks, Honey Badger agrees to issue shares of Honey Badger to Romios for a value of C$150,000and free-carry all costs and expenses related to the maintenance and advancement of the project to pre-feasibility.
Romios shall grant a right of first refusal to Honey Badger on its 20 per cent remaining interest, post-transaction.
Romios Gold Resources is down 10.00 per cent on the day, with the company’s shares trading at $0.045 at 9:52 am ET.