Delta Announces Option Agreement to Acquire the Dollier Property from Cartier Resources to Add to Its VMS Property Package in Chibougamau, Quebec

Rhea-AI Summary

Delta Resources Limited has optioned the Dollier Property in Chibougamau, Quebec from Cartier Resources Inc. for a non-refundable payment of $10,000 and a commitment to issue 600,000 shares over four years, alongside $1 million in exploration expenditures. The agreement is pending TSX approval. The property, which contains significant gold prospects, will enhance Delta's existing VMS property package. Upon completion, Cartier is entitled to a 2% NSR royalty, with Delta having the right to buy back 1% for $2 million and the second 1% for $15 million.

Positive

• Acquisition of Dollier Property enhances Delta's VMS exploration potential.
• Strategic consolidation of property package in a highly prospective area.
• Significant gold grades reported at the Dollier Property, potentially increasing future revenue.

Negative

• The agreement is conditional on TSX approval, introducing uncertainty.
• Attracting investments may be challenging if exploration expenditures are not met.

KINGSTON, ON / ACCESSWIRE / May 13, 2021 / Delta Resources Limited ("Delta" or "the Company") (TSX-V:DLTA) (OTC PINK:DTARF) (FRANKFURT:6G01) is pleased to announce that it has optioned the Dollier Property in Chibougamau, Quebec from Cartier Resources Inc. ("Cartier"). The Dollier Property is immediately adjacent to the highly prospective VMS property package currently being explored by Delta.

Delta shall have the sole and exclusive right to earn a 100% Interest (the "Option") by paying Cartier a non-refundable amount of $10,000 in cash (the "Cash Payment") at signing; by completing the issuance in favour of Cartier of an aggregate of 600,000 Delta shares including 100,000 shares at signing, 100,000 shares at the one year anniversary, 200,000 shares at the two year anniversary and 200,000 shares at three year anniversary; and by incurring $1,000,000 in exploration expenditures over the four year Option period. The agreement is conditional on TSX approval.

Upon earning a 100% interest in the Dollier Property, Cartier will be granted a 2% NSR production royalty. Delta will have the exclusive right to purchase the first 1% NSR for $2,000,000 and the second 1% NSR for $15,000,000.

Delta may elect at any time, on or before the Option Deadline to terminate the Option by delivering notice in writing to that effect to Cartier.

The Dollier property consists of 40 claims covering 2,228 hectares and is contiguous to the Delta-2 VMS property in Chibougamau, Quebec. The property is host to the Delinel Gold-Pyrite VMS prospect where best results include 25.1 g/t gold over 1.0m, 13.3 g/t gold over 1.2m and 11.9 g/t gold over 1.0m (resourcecartier.com)

André Tessier, President and CEO commented as follows: "As we plan our next phase of exploration drilling to test our highly prospective VMS drill targets, it was imperative that we consolidate the property package in Chibougamau, Quebec. We look forward to beginning the drill campaign on a number of our high priority VMS targets in the coming weeks."

About Delta Resources Limited

Delta Resources Limited is a Canadian mineral exploration company focused on growing shareholder value through the exploration of two very high-potential gold and base-metal projects in Canada.

• DELTA-1, 45 km² located 50km west of Thunder Bay, Ontario where an extremely high gold-in-till anomaly and kilometre-scale gold-bearing alteration halo point to a never-tested regional structure.
• DELTA-2 GOLD and DELTA-2 VMS, 170 km² in the prolific Chibougamau District of Quebec, with a potential for hydrothermal-gold and gold-rich VMS deposits.

Delta has 35M shares outstanding has a fully funded exploration for 2021 and in addition, is set to receive $1 M in scaled payments, starting August 1st, 2021, through the sale of its Bellechasse-Timmins gold project in SE Quebec.

ON BEHALF OF THE BOARD OF DELTA RESOURCES LIMITED.

Andre C. Tessier
President, CEO and Director
www.deltaresources.ca

We seek safe harbor. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not approved nor disapproved of the information contained herein.

For Further Information:

Delta Resources Limited

Frank Candido, Chairman, VP Corporate Communications
Tel : 514-969-5530
fcandido@deltaresources.ca
or
Andre Tessier, CEO and President
Tel: 613-328-1581
atessier@deltaresources.ca

Cautionary Note Regarding Forward Looking Information

Some statements contained in this news release are "forward looking information" within the meaning of Canadian securities laws. Forward looking information includes, but is not limited to, statements regarding: the samples may be proximal to a rich bedrock source for the gold; the possibility of the same source for gold mineralization; and the initiation of a property-scale till survey in September. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Investors are cautioned that forward-looking information is inherently uncertain and involves risks, assumptions and uncertainties that could cause actual facts to differ materially. There can be no assurance that future developments affecting the Company will be those anticipated by management. The forward-looking information contained in this press release constitutes management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event.

SOURCE: Delta Resources Limited

View source version on accesswire.com:
https://www.accesswire.com/647181/Delta-Announces-Option-Agreement-to-Acquire-the-Dollier-Property-from-Cartier-Resources-to-Add-to-Its-VMS-Property-Package-in-Chibougamau-Quebec

FAQ

What is the purpose of Delta's acquisition of the Dollier Property?

Delta aims to enhance its exploration capabilities in Chibougamau, Quebec by acquiring the Dollier Property, adjacent to its existing VMS property.

What are the financial terms of the Dollier Property option agreement?

Delta will pay $10,000 in cash and issue 600,000 shares over four years, along with committing to $1 million in exploration expenditures.

What are the expected benefits of consolidating the property package?

The consolidation is expected to strengthen Delta's position in the exploration of high-value VMS targets in a mineral-rich area.

What is the strategic importance of the Dollier Property?

The property hosts significant gold grades, which could lead to increased future resource value and revenue.

Is the acquisition of the Dollier Property finalized?

No, the agreement is conditional on the approval from TSX.

What royalties are associated with the Dollier Property?

Upon earning a 100% interest, Cartier will receive a 2% NSR royalty, with Delta having the option to buy back portions of that royalty.