Delta Resources Receives $250,000 Cash Payment from Yorkton Ventures

Rhea-AI Summary

Delta Resources Limited has announced a $250,000 cash payment from Yorkton Ventures as part of the sale of its Bellechasse-Timmins Gold Deposit in Quebec. Remaining cash payments from Yorkton are structured at $350,000 by February 1, 2021, $450,000 by June 1, 2021, and $550,000 by September 1, 2021. Yorkton will also pay a 1% Net Smelter Return royalty on commercial production. Delta Resources holds a 100% interest in the Bellechasse-Timmins project, which has an indicated resource of 171,000 oz at 1.83 g/t gold.

Positive

• $250,000 cash receipt from Yorkton Ventures enhances liquidity.
• Remaining payments totaling $1.35M scheduled through 2021 provide financial visibility.
• 1% NSR royalty ensures future revenue from the Bellechasse-Timmins deposit.

Negative

• None.

KINGSTON, ON / ACCESSWIRE / October 15, 2020 / Delta Resources Limited ("Delta" or "the Company") (TSXV:DLTA) (OTCBB:GOLHF)(Frankfurt:6G01) is pleased to announce that it has received a $250,000 cash payment from Yorkton Ventures as a second tranche for the sale of its Bellechasse-Timmins Gold Deposit in southeastern Quebec, Canada and as per the terms of the agreement previously announced on July 7, 2020.

To acquire a 100% interest in the Property, Yorkton's remaining cash payments to Delta are as follows:

• $350,000 cash payment before February 1^st, 2021,
• $450,000 cash payment no later than June 1, 2021; and
• $550,000 cash payment no later than September 1^st, 2021.

Yorkton has also committed to paying Delta a 1% Net Smelter Return (NSR) royalty on any and all commercial production derived from the Bellechasse-Timmins property. Yorkton may re-purchase 0.5% of the NSR for $1 Million at any time.

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, located 50km west of Thunder Bay, Ontario where a 1000m drilling program was completed in Nov. 2019, testing the newly discovered Eureka Gold prospect. Results so far show very wide intercepts of low-grade gold in a km-scale alteration zone.
• DELTA-2, located 35km SE of the Chibougamau, Quebec, where preliminary due diligence and prospecting work discovered two new gold occurrences where grab samples returned up to 55,8 g/t Au and 11,45 g/t Au.

Delta also owns a 100% interest in the Bellechasse-Timmins gold deposit in SE Quebec, which contains a 43-101 gold resource of 171,000 oz @1.83 g/t gold (indicated) and an additional 95,000 oz @1.36 g/t gold (inferred). On July 3, 2020, Delta signed an agreement with Yorkton Ventures Inc for the sale of the Bellechasse-Timmins project for $1,7M payable over 15 months of signing.

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:
Contact Delta Resources Limited

Frank Candido, Chairman
Tel: 514-969-5530
fcandido@deltaresources.ca

or

Andre Tessier, President and CEO
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 include, but are not limited to, statements regarding the use of proceeds of the non-brokered private placement and payment of the debt settlements. 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/610612/Delta-Resources-Receives-250000-Cash-Payment-from-Yorkton-Ventures

FAQ

What recent payment did Delta Resources receive related to the Bellechasse-Timmins Gold Deposit?

Delta Resources received a $250,000 cash payment from Yorkton Ventures as a second tranche for the sale of the Bellechasse-Timmins Gold Deposit.

What are the upcoming cash payments from Yorkton Ventures to Delta Resources?

Yorkton Ventures is scheduled to make remaining payments of $350,000 by February 1, 2021, $450,000 by June 1, 2021, and $550,000 by September 1, 2021.

Does Delta Resources receive any royalties from the Bellechasse-Timmins project?

Yes, Delta Resources will receive a 1% Net Smelter Return royalty on any commercial production from the Bellechasse-Timmins project.

What is the indicated resource at the Bellechasse-Timmins deposit?

The Bellechasse-Timmins deposit has an indicated resource of 171,000 oz at 1.83 g/t gold.