Delta Resources buys back NSR royalty from the OEC at Delta-1 / Eureka in Thunder Bay, Ontario

Rhea-AI Summary

Delta Resources Limited has successfully bought back 50% of a Net Smelter Return (NSR) royalty on its Delta-1 Property from the Ontario Exploration Corporation for $35,000. This acquisition gives Delta the option to purchase the remaining 50% NSR for an additional $50,000, potentially eliminating future royalty payments on key claims, including the Eureka Gold prospect. Delta's CEO, André Tessier, emphasized the importance of this move after recent exploration successes. The company remains focused on maximizing shareholder value through its mineral exploration projects.

Positive

• Acquisition of 50% NSR royalty for $35,000 strengthens financial position.
• Ability to buy remaining NSR for $50,000 could eliminate future royalty liabilities.
• Recent exploration success at Delta-1 property increases asset value.

Negative

• None.

KINGSTON, ON / ACCESSWIRE / June 2, 2021 / Delta Resources Limited ("Delta" or "the Company") (TSX-V:DLTA) (OTC PINK:DTARF) (FRANKFURT:6G01) is pleased to announce that it has bought back 50% of a Net Smelter Return ("NSR") royalty held by the Ontario Exploration Corporation ("OEC"), on its Delta-1 Property, by making a cash payment of $35,000. By doing so, Delta has also secured the exclusive right to buy back, at anytime, the remaining 50% NSR royalty held by the OEC, for the additional sum of $50,000. Should Delta elect to purchase the second 50% tranche, it will have purchased the entire royalty currently held by the OEC. The NRS royalty amounts to 0.5% to 1.0% on key claims of its Delta-1 Property, which include the Eureka Gold prospect.

The transaction was carried-out under the terms of an agreement announced December 27, 2019, between Delta and the Ontario Exploration Corporation ("OEC").

When Delta acquired the Eureka Gold Prospect (Now the Delta-1 property), the OEC owned between 0.5% and 1.0% NSR royalty on certain claims of the Delta-1 property. More specifically, the OEC owned a 1.0% NSR on the claims covering the Eureka Gold prospect, Matawin and Kaspar gold occurrences and a 0.5% NSR on the claims surrounding the Kaspar occurrence. Should Delta elect to purchase the second 0.5% NSR, Delta will have purchased the entire NSR royalty currently held by the OEC on the Delta-1 property and the Eureka gold occurrence.

"With Delta's recent exploration success at the Delta-1 property it was very important for us to minimize the potential royalties payable down the road" says André Tessier, President and CEO of Delta. "Delta would like to take the opportunity to thank the Ontario Prospector's Association and the Ontario Exploration Corporation for facilitating this transaction".

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/650065/Delta-Resources-buys-back-NSR-royalty-from-the-OEC-at-Delta-1-Eureka-in-Thunder-Bay-Ontario

FAQ

What does Delta Resources Limited's NSR royalty buyback entail?

Delta Resources bought back 50% of the NSR royalty for $35,000 and has the option to buy the remaining 50% for $50,000.

How does the NSR royalty affect Delta's financial position?

By buying back the NSR royalties, Delta aims to minimize future royalty payments, enhancing its financial outlook.

What is the significance of the Eureka Gold prospect for Delta?

The Eureka Gold prospect is a key area within Delta's Delta-1 Property, contributing to the company's growth potential.

When did Delta announce the buyback of the NSR royalty?

The buyback was announced on June 2, 2021.

What are the next steps for Delta following the buyback?

Delta may consider purchasing the remaining 50% NSR royalty to further reduce potential royalty liabilities.