Trillium Gold Mines (TSXV: TGM) announced on Tuesday that is has signed an agreement to acquire the Rivard Property, contiguous to its Newman Todd Property, in the Red Lake Mining District in Ontario.
The Rivard Property consists of one lease of six contiguous minerals claims encompassing 90 hectares. Gold is observed in quartz veins in drill core, outcrops and in trenches across the property. Alteration and wide-spread gold mineralization occur extensively within structurally and chemically favorable rocks. According to Trillium, the property is underexplored and has not been drilled below 300m vertically.
“The property includes an on-strike extension to the Newman Todd Zone to the southwest of our current landholding and adds a new exploration dimension with the high-grade gold veins that have been mined on surface,” CEO Russell Star said in a media statement.
The company plans to initiate exploration by updating the geologic mapping and surface sampling in advance of drilling later this year.
Upon completion of the transaction, Trillium will acquire a 100% interest in the property, subject to a 1.5% NSR royalty, by completing payments totalling C$400,000 and 400,000 shares over 3.5 years.
The company has the right to repurchase 1/2 of the royalty (0.75%) for consideration of C$1.2 million, payable in cash or shares.
Trillium recently announced that it is restarting exploration drilling on the Newman Todd property, after a seven-year hiatus.
Midday Tuesday, Trillium’s stock was up 21% on the TSXV. The company has a C$54 million market capitalization.