Delta Further Expands Its Land Position in Thunder Bay, Ontario

Rhea-AI Summary

Delta Resources has entered into four agreements to acquire a 100% interest in 330 claim units across 68 square kilometers in Thunder Bay, Ontario, contiguous to its Delta-1 Property. These acquisitions make Delta the largest landholder in the eastern Shebandowan greenstone belt, covering 220 square kilometers.

The agreements include payments totaling $186,000 in cash and 1,933,334 shares, plus Net Smelter Return Royalties (NSR) with buyback options. Delta’s CEO, André Tessier, stated that these acquisitions position the company strategically in a highly prospective area.

Positive

• Acquisition of 330 claim units covering 68 sq km in Thunder Bay, Ontario.
• Delta becomes the largest landholder in the eastern Shebandowan greenstone belt.
• Control over 220 sq km of prospective ground in the region.
• CEO André Tessier emphasized strategic positioning in a highly prospective area.
• Total acquisition cost includes $186,000 in cash and 1,933,334 shares, manageable financial outlay.

Negative

• Vendors will retain Net Smelter Return Royalties (NSR), impacting future profits.
• Buyback options for NSRs could require up to $4M.
• Significant share issuance (1,933,334 shares) may lead to shareholder dilution.
• Some agreements are subject to regulatory approval, introducing uncertainty.

• (4) Four purchase or option agreements totaling 330 cell units covering 68 square kilometres

Kingston, Ontario--(Newsfile Corp. - May 28, 2024) - Delta Resources Limited (TSXV: DLTA) (OTC PINK: DTARF) (FSE: 6G01) ("Delta" or "The Company")  is pleased announce that it has entered into four (4) four separate agreements (two purchase agreements and two option agreements) whereby Delta is acquiring the exclusive rights to earn a 100% interest in 330 claim units covering approximately 68 square kilometres, contiguous to its Delta-1 Property in Thunder Bay, Ontario see Figure 1).

Figure 1: Geological map of the Shebandowan Greenstone belt showing the position of the Delta-1 Property, the newly optioned Bandore property (in blue) and Delta's new property acquisitions/options in red.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8482/210755_0c12e368647c4b9e_001full.jpg

With these new options and acquisitions, Delta now controls 220 square kilometres in the eastern portion of the Shebandowan greenstone belt.

André Tessier, President, and CEO commented: "With these acquisitions, Delta becomes the largest land-owner in the eastern portion of the belt, covering what our team deems to be the most prospective ground in the belt. Delta is assembling the building blocks to secure a dominant presence in the under-explored Shebandowan greenstone belt."

The terms of the agreements are as follows: (Agreements for Properties 3 and 4 are subject to regulatory approval.)

PROPERTY 1: Delta has entered on May 8, 2024 into a mineral claims purchase agreement whereby the Corporation acquired a 100% interest in twenty-two (22) claims, covering approximately 458 hectares contiguous to its Delta-1 property in Duckworth Township, Thunder Bay, Ontario.

Delta paid the sum of $21,150.00 for 100% interest in the property. Vendors will retain a 2% Net Smelter Return Royalty ("NSR"). Delta will have the option to buyback a 1.0% NSR at anytime for $1M and will have a right of first refusal on the second 1.0% NSR up to a maximum of $4,000,000.

PROPERTY 2: Delta has entered on May 9, 2024 into a mineral claims purchase agreement whereby the Corporation acquired a 100% interest in thirty-seven (37) claims, covering approximately 790 hectares contiguous to Property 1 (above) in Duckworth Township, Thunder Bay, Ontario.

Delta paid the sum of $31,850.00 on TSX approval for 100% interest in the property. Vendors will retain a 2% Net Smelter Return Royalty ("NSR"). Delta will have the option to buyback a 1.0% NSR at anytime for $1M and will have a right of first refusal on the second 1.0% NSR up to a maximum of $4,000,000.

PROPERTY 3: THE GOLD-CREEK PROPERTY: Delta has entered into a mineral claims purchase agreement with Portofino Resources Corp. (the "Vendors"), whereby the Corporation earns the exclusive right to acquire a 100% interest in 16 unpatented claims (214 claim units), covering approximately 4,324 hectares west of its Delta-1 property in Duckworth and Lamport Townships, Thunder Bay, Ontario. Contiguous to Property 2 above.

The terms of the agreement are as follows:

On signing: $100,000 in cash and 666,667 shares of Delta
Anniversary 1: $100,000 in cash and 666,667 shares of Delta
Anniversary 2: $100,000 in cash and 666,667 shares of Delta
*One half of the shares issued by Delta will be locked-up for a period of 12 months after issuance.

Vendor will retain a 2% Net Smelter Return Royalty ("NSR"). Delta will have the option to buyback a 1.0% NSR at anytime for $1M and will have a right of first refusal on the second 1.0% NSR, to a maximum of $4,000,000.

Delta will assume the underlying agreements between Portofino and previous vendors on three different portions of the property, therefore retaining the right to buyback 0.75% NSR for $500,000, 0.5% NSR for $300,000 and 0.75% NSR for $200,000.

PROPERTY 4: Delta has entered into a mineral claims purchase agreement whereby the Corporation earns the right to acquire a 100% interest in 41 unpatented claims (57 claim units), covering approximately 1,224 hectares west of its Delta-1 property in Duckworth and Lamport Townships, Thunder Bay, Ontario. Contiguous to PROPERTY 3 above.

The terms of the agreement are as follows:

On signing: $12,000 in cash and 400,000 shares of Delta
Anniversary 1: $18,000 in cash and 200,000 shares of Delta
Anniversary 2: $24,000 in cash
Anniversary 3: $30,000 in cash
*One half of the shares issued by Delta will be locked-up for a period of 6 months after issuance.

Vendor will retain a 1.5% Net Smelter Return Royalty ("NSR"). Delta will have the option to buy back a 0.5% NSR at any time for $600,000 and will have a right of first refusal on the second 1.0% NSR, to a maximum of $4,000,000.

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 is Delta's flagship project, where the company is building on a large gold inventory 50 kilometres west of Thunder Bay, Ontario, at surface and adjacent to the Trans-Canada highway. To date, the gold mineralization is defined over a strike length of 2.0 km, from surface to a vertical depth of 250 m. Highlights include drill intercepts such as 5.92 g/t Au over 31 m (incl. 14.8 g/t Au over 11.9 m), and 1.79 g/t Au over 128.5 m. The property covers 220 square kilometres and Delta has identified a 5 km long corridor of intense alteration and deformation at the property, on strike with the gold zone, that has yet to be thoroughly explored.

The DELTA-2 property covers 205 square kilometres in the prolific Chibougamau District of Quebec. The property holds excellent potential for gold-rich polymetallic VMS deposits as well as hydrothermal-gold deposits. Delta targets VMS deposits such as the LeMoine past producer where 0.76 Mt were mined between 1975 and 1983, grading 9.6% Zn, 4.2% Cu, 4.5 g/t Au and 84 g/t Ag.

ON BEHALF OF THE BOARD OF DELTA RESOURCES LIMITED.

Andre Tessier
President and CEO
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

Andre C. Tessier, CEO and President
Tel: 613-328-1581
atessier@deltaresources.ca

or

Frank Candido, Chairman
Vice-President Corporate Communications
Tel: 514-969-5530
fcandido@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. 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/210755

FAQ

What land position did Delta Resources acquire in Thunder Bay, Ontario?

Delta Resources acquired 330 claim units covering 68 square kilometers in Thunder Bay, Ontario, increasing their land position in the eastern Shebandowan greenstone belt to 220 square kilometers.

How much did Delta Resources pay for the new acquisitions in Thunder Bay?

Delta Resources paid a total of $186,000 in cash and 1,933,334 shares for the new acquisitions in Thunder Bay.

What are the terms of the Net Smelter Return Royalties (NSR) in Delta's new agreements?

The Net Smelter Return Royalties (NSR) in Delta's new agreements include buyback options, with costs potentially reaching up to $4 million.

What is the strategic significance of Delta's new acquisitions in Thunder Bay?

Delta's new acquisitions make it the largest landholder in the eastern Shebandowan greenstone belt, covering 220 square kilometers of highly prospective ground.

Are there any regulatory approvals pending for Delta's new property acquisitions?

Yes, agreements for two of the new properties are subject to regulatory approval.