Golden Share Options Band-Ore Property to Delta Resources Limited

Rhea-AI Summary

Golden Share Resources (TSXV: GSH) has entered into an option agreement with Delta Resources (TSXV: DLTA) for the Band-Ore property, located near Thunder Bay, Ontario. The property includes two historic high-grade gold resources, totaling approximately 251,396 ounces of gold, though these figures are not NI 43-101 compliant.

The Band-Ore property spans 2,115 hectares, comprising 16 patented mining claims, one mining claim lease, and 109 staked mining claims. Delta Resources will take charge of exploration efforts, enhancing synergies with its existing projects.

Delta can acquire 100% interest in the property by making cash and share payments to Golden Share totaling $2 million over five years. Golden Share will retain a 2% Net Smelter Return Royalty (NSR) and is entitled to additional bonuses based on future gold resource estimates. The agreement is pending regulatory approval.

Positive

• Delta Resources to lead exploration efforts, leveraging their expertise.
• Potential synergies with Delta's existing projects in the Shebandowan greenstone belt.
• Golden Share retains a 2% Net Smelter Return Royalty (NSR).
• Future bonuses for Golden Share based on NI 43-101 compliant resource estimates.

Negative

• Historic gold resource estimates are not NI 43-101 compliant.
• Agreement is subject to regulatory approval, which may delay proceedings.
• Golden Share's future revenue dependent on Delta's successful exploration and resource definition.

Toronto, Ontario--(Newsfile Corp. - May 24, 2024) - Golden Share Resources Corporation (TSXV: GSH) ("Golden Share" or the "Company") is pleased to announce that it has entered into an option agreement with Delta Resources Limited (TSXV: DLTA) (OTCBB: DTARF) (FSE: 6G01) ("Delta"), 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 Property is located west of Thunder Bay, Ontario and hosts two historic high-grade gold resources (the resources of which are not considered National Instrument 43-101 compliant, nor is the Company treating them as such).

Table 1: Band-Ore Historic Mineral Resources

	Tonnes	Average Grade	Ounces
Band-Ore Main Zone	706,000	6.86 g/t	155,728
Band-Ore Zone No. 4	616,000	4.84 g/t	95,668

 

The 10 km long property 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, on strike with the Delta-1 gold mineralization. Both the Main Zone and the No. 4 Zone are open at depth and along strike.

Wes Roberts, CEO of Golden Share, commented, "We are very pleased to have Andre Tessier, an experienced exploration specialist, and the geological team at Delta take charge of the Band-Ore exploration program. In addition, we welcome Delta's efforts to consolidate the Shebandowan greenstone belt and obvious synergies it will generate for our collective stakeholders."

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.

 

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/210364

FAQ

What is the total historic gold resource estimate for the Band-Ore property?

The Band-Ore property has a historic gold resource estimate totaling approximately 251,396 ounces, though these figures are not NI 43-101 compliant.

What are the financial terms of Delta Resources' option agreement for the Band-Ore property?

Delta Resources must make aggregate cash and share payments to Golden Share totaling $2 million over five years to acquire a 100% interest in the Band-Ore property.

What royalties and bonuses will Golden Share retain under the agreement for the Band-Ore property?

Golden Share will retain a 2% Net Smelter Return Royalty (NSR) and bonuses based on future NI 43-101 compliant gold resource estimates.

Where is the Band-Ore property located?

The Band-Ore property is located west of Thunder Bay, Ontario, and includes 16 patented mining claims, one mining claim lease, and 109 staked mining claims.

What is the stock symbol for Delta Resources ?

Delta Resources is listed on TSXV under the symbol DLTA and on OTCBB under the symbol DTARF.