Golden Share Amends Band-Ore Property Options Agreement with Delta Resources Limited

Rhea-AI Summary

Golden Share Resources (TSXV: GSH) has amended its option agreement with Delta Resources (TSXV: DLTA, OTC Pink: DTARF, FSE: 6GO1) regarding the Band-Ore property. The amendment sets a minimum share price of $0.075, capping the maximum issuance at 9,333,333 shares to Golden Share. The Band-Ore property, located west of Thunder Bay, Ontario, spans 2,115 hectares with 126 mining claims. Delta must make payments totaling $2,000,000 over five years to acquire a 100% interest. Golden Share retains a 2% Net Smelter Return Royalty, with Delta having the option to buy back 1% for $3M. Golden Share will receive bonuses if Delta defines significant gold resources on the property. Regulatory approval is pending.

Positive

• The amendment secures a minimum share price of $0.075, capping Delta's share issuance to Golden Share.
• Golden Share will retain a 2% Net Smelter Return Royalty with a buyback option for Delta at $3M.
• $2,000,000 in payments will be made to Golden Share over five years.
• Potential bonuses for Golden Share if significant gold resources are defined by Delta.

Negative

• The agreement is still subject to regulatory approval.

Toronto, Ontario--(Newsfile Corp. - July 10, 2024) - Golden Share Resources Corporation (TSXV: GSH) ("Golden Share" or the "Company")  is pleased to announce that it has amended the option agreement with Delta Resources Limited (TSXV: DLTA) (OTC Pink: DTARF) (FSE: 6GO1) ("Delta")  announced on May 23, 2024, in which the Company has granted an option to Delta to earn a 100% interest in the Band-Ore property (the "Property" or "Band-Ore"). The objective of the amendment is to fix the absolute maximum number of shares that could possibly be issued by Delta to Golden Share by fixing the minimum price per share that Delta would issue as part of the agreement. The minimum price of the Delta shares was therefore fixed at $0.075 for a maximum possible issuance of 9,333,333 shares that could be issued to Golden Share.

The Property is located west of Thunder Bay, Ontario and covers approximately 2,115 hectares and comprises 16 patented mining claims, one mining claim lease, and 109 staked mining claims in Hagey and Conacher Townships of Ontario.

Agreement Details: In order to acquire a 100% interest in the Property, the Company is required to make aggregate cash and security payments to Golden Share in the amount of $2,000,000 as below:

On signing:	$100,000 in cash
Anniversary 1:	$150,000 in cash and $100,000 in Delta shares
Anniversary 2:	$150,000 in cash and $100,000 in Delta shares
Anniversary 3:	$200,000 in cash and $100,000 in Delta shares
Anniversary 4:	$300,000 in cash and $200,000 in Delta shares
Anniversary 5:	$400,000 in cash and $200,000 in Delta shares

 

*All share prices are based on 20-day VWAP, with a minimum price of $0.075 per share.

Golden Share will retain a 2% Net Smelter Return Royalty ("NSR"). Delta will have the option to buyback a 1.0% NSR at anytime for $3M and will have a right of first refusal on the second 1.0% NSR.

If Delta defines a NI 43-101 mineral resource on the property after earn-in, Golden Share will be entitled to a bonus of $500,000 for an estimate of 500,000 gold ounces contained up to 1,000,000 ounces and a bonus of $1,000,000 for an estimate of greater than 1,000,000 contained gold ounces. There are no work commitments on the property.

The agreement is subject to regulatory approval.

Qualified Persons

The technical content disclosed in this press release was reviewed and approved by Wes Roberts, P. Eng., a Qualified Person as defined under NI 43-101.

About Golden Share

Golden Share Resources Corporation is a mineral exploration company focusing on the province of Ontario, Canada, a mineral rich and politically stable jurisdiction.

WARNING: Certain statements in this press release may be forward-looking, including those with respect to the timing and content of up-coming work programs, geological interpretations, etc. Forward-Looking statements address future events and conditions and therefore involve inherent risks, uncertainties and assumptions. Actual results may differ materially from those currently anticipated in such statements. The Company relies upon litigation protection for forward-looking statements. The reader is warned against undue reliance on these forward-looking statements.

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.

For more information, please visit www.goldenshare.ca or contact:

Golden Share Resources Corporation
Wes Roberts, P.Eng. CEO
E-mail: info@goldenshare.ca

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216038

FAQ

What is the minimum share price set for Delta Resources 's shares in the amended agreement?

The minimum share price set for Delta Resources 's shares is $0.075.

How many shares can Delta Resources issue to Golden Share according to the amended agreement?

Delta Resources can issue up to a maximum of 9,333,333 shares to Golden Share.

What is the total amount Delta Resources will pay to Golden Share over the five-year period?

Delta Resources will pay a total of $2,000,000 to Golden Share over five years.

What Net Smelter Return Royalty does Golden Share retain?

Golden Share retains a 2% Net Smelter Return Royalty.

What bonuses will Golden Share receive if significant gold resources are defined on the Band-Ore property?

Golden Share will receive a bonus of $500,000 for 500,000 to 1,000,000 contained gold ounces and $1,000,000 for more than 1,000,000 contained gold ounces.

What is required for the agreement between Golden Share and Delta Resources to be finalized?

The agreement is subject to regulatory approval.