Caprock Mining has entered into a binding option agreement to acquire a 100% interest in the Destiny gold property near Val D’Or, Quebec.
The agreement with Big Ridge Gold outlines conditions for Caprock to fulfil over three years, including share issuance, cash payments and expenditures.
Under the agreement, Caprock will issue eight million common shares at $0.05 each on the closing date, valued at $400,000 (C$561,408). Additionally, Caprock will make cash payments and issue more shares over three years.
The total cash payments will amount to $750,000 and the shares will be valued based on market conditions.
Under the Option Agreement, Caprock has the option to acquire a 100% interest in the property by fulfilling a set of obligations over a period of three years.
These include a payment of $100,000 in cash, and $250,000 in common shares of the company may be made on or before the one-year anniversary of the closing date, with the number of shares determined based on a deemed per-share value.
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Payment of $250,000 in cash and $350,000 in common shares of the company can be made on or before the two-year anniversary of the closing date, with the number of shares determined based on a deemed per-share value.
Caprock is also required to invest $2.45m in qualified expenditures on the property, with specific amounts allocated each year.
The shares issued will be subject to a four-month statutory hold period. The transaction’s closing options are contingent on Caprock raising at least $400,000, completing due diligence and obtaining regulatory approvals, among others.
Upon fulfilling these obligations, Big Ridge Gold will retain a 1% net smelter return (NSR) on the property, which Caprock can purchase for $1m at any time.
The Destiny property consists of 127 mineral claims covering 5,013ha in the Abitibi greenstone belt, a region known for its significant gold deposits.
The project is situated near the Cadillac-Larder Lake and Destor-Porcupine fault zones, which host numerous gold deposits.
