- UrbanGold Minerals (UGM) has signed an agreement to option its Lac James property in the Chibougamau region of Quebec to Goliath Resources
- Under the terms of the deal, Goliath may acquire a 100 per cent stake in the property for a total of C$75,000 in cash and an initial allotment of 200,000 common shares
- UrbanGold will retain a one per cent net smelter return royalty on the project
- The Lac James property consists of 28 claims over a total of 1,560 hectares, and sits adjacent to the high-grade Joe Mann deposit
- UrbanGold Minerals (UGM) is currently down 2.13 per cent and is trading at 23 cents per share
UrbanGold Minerals (UGM) has signed an agreement to option its Lac James property in the Chibougamau region of Quebec to Goliath Resources.
Consisting of 28 claims over a total land package of 1,560 hectares, the Lac James property sits roughly 50 kilometres south of the Chibougamau copper-gold mining camp, which produced 1.6 billion pounds of copper and 3.2 million ounces of gold between 1953 and 2008.
The property also sits adjacent to the high-grade Joe Mann deposit, which produced a total of 1.525 million tonnes of ore at 11 grams per tonne of gold, 0.28 per cent copper and 4.59 grams per tonne of silver.
Subject to final approval by the TSX Venture Exchange, Goliath Resources may acquire a 100 per cent stake in the Lac James property for a cash payment of C$75,000 before June 29, 2021, along with the issuance of 200,000 common shares upon approval of the transaction.
A further $40,000 worth of common shares will be issued to UrbanGold on the day preceding Goliath’s exercise of its option to acquire the property.
In addition, UrbanGold will retain a one per cent net smelter return royalty on the Lac James property and will receive a one-off cash payment of $500,000, following a mineral resource estimate of at least 250,000 ounces of gold.
Mathieu Stephens, President and CEO of UrbanGold, commented on the agreement with Goliath Resources.
“As we continue to advance our other gold properties, including the Troilus area projects, UrbanGold holds many other high-quality gold assets and we are always looking for solid partners for these assets.
“The Lac James property is one of these assets and we look forward to working with Goliath and their experienced technical team on this property,” he added.
UrbanGold Minerals (UGM) is down 2.13 per cent and is trading at 23 cents per share at 1:33pm EDT.