- Portofino Resources (TSXV:POR) has executed a binding agreement to acquire up to a 100 per cent interest in the Melema West Gold Property
- The company will issue 700,000 common shares for the acquisition, as well as C$62,000 in cash paid out over a four-year period
- The property will remain subject to a net smelter return royalty of 1.5 per cent, although 0.75 per cent of this may be repurchased for a one-time fee
- Previously collected exploration data is now being compiled ahead of a summer field program
- Portofino Resources (POR) is currently up 9.09 per cent and is trading at six cents per share
Portofino Resources (TSXV:POR) has executed a binding agreement to acquire up to a 100 per cent interest in the Melema West Gold Property.
As consideration for the acquisition, the company will issue 700,000 common shares to the vendors of the property along with a cash payment of C$62,000, which will be paid out over a four-year period.
The property will also be subject to a 1.5 per cent net smelter return royalty, although half of this may be re-purchased by Portofino at any time prior to the commencement of production for a one-time cash payment of $500,000.
Located in Ontario, the Melema West Gold Property is host to six claims over total land package of 869 hectares. It is entirely underlain by the Archean-age Marmion Pluton, which is thought to hold a number of varying gold deposits.
Agnico Eagle’s Hammond Reef gold deposit, located roughly 19 kilometres northwest of Melema West, is also underlain by the Marmion Pluton on a similarly north-west trending structure.
Hammond Reef is reported to hold a large, near-surface deposit, with a measured and indicated resource of 4.5 million ounces of gold.
David Tafel, CEO of Portofino Resources, noted that the site’s gold-bearing area is extensive, well-documented and traceable for more than 30 kilometres.
“The recent land acquisitions by Agnico Eagle in the area and contiguous to the Melema West Property adds support that Portofino is strategically placed.
“The undocumented and unexplored Young-Corrigan Shear Zone is a compelling exploration target with strong merit. We are very excited to commence our initial field work on this well-situated project,” he said.
The company is now working to compile previously collected data in order to establish exploration targets for an upcoming summer field program.
Portofino Resources (POR) is up 9.09 per cent and is trading at six cents per share at 1:56pm EDT.