Retains 100% Interest in N1-N2 Gold Project, Quebec
Vancouver, Mar 6, 2016 AEST (ABN Newswire) - Balmoral Resources Ltd. ("Balmoral" or the "Company") (
TSE:BAR) (BALMF:OTCMKTS) advised its shareholders that the Company will retain a 100% interest in its N1 and N2 gold properties, located along the Casa-Berardi-Douay Gold Trend in Quebec. The previously announced (see NR15-02, Feb. 2, 2015) Option Agreement between the Company and Wealth Minerals Ltd. (CVE:WML)("Wealth") has been terminated with Wealth having chosen to focus on opportunities in the lithium space. Balmoral will therefore retain a 100% interest in the properties and examine other options to move the properties forward.
Balmoral and Wealth have entered into an Agreement (the "Termination Agreement") whereby Wealth will settle certain obligations originally contemplated under the Option Agreement by making to Balmoral certain cash and/or common share payments in installments between April 1 and October 1 of 2016. Any common shares to be delivered under the terms of the Termination Agreement shall be valued at the average price of Wealth's common shares for the proceeding 20 trading days and maybe subject to prior approval of the TSXV and standard hold provisions. Balmoral received a payment of 1,000,000 common shares of Wealth in February of 2015 and currently retains 425,000 shares for investment purposes.
"Given the rising tide in the gold market, in particular in relation to gold opportunities in Canada, we are pleased to get the N1 and N2 properties back unencumbered" said Darin Wagner, President and CEO of Balmoral. "This provides Balmoral with the flexibility to find an alternative path to advance the properties while having captured some benefit for the shareholders over the last 12 months."
The Properties
Balmoral's N1 and N2 Properties are located along the Casa-Berardi-Douay Gold Trend which hosts the multi-million ounce Casa-Berardi gold mine and the immediately adjacent Vezza gold deposit. Work by previous operators has identified 6 separate zones of gold mineralization on the N2 Property. The most extensive of these zones, the A Zone, has been traced in shallow drilling for well over 1,000 metres along strike. Drill testing to date has been limited to depths of 25 to 350 vertical metres. All known zones of gold mineralization remain open for expansion. In 2011 the Company completed a VTEM airborne survey of the N2 Property which outlined several areas of interest which remain to be tested.
The project is road accessible and located 25 kilometres south of Mattagami, Quebec, approximately 55 kilometres east of the now dormant Sleeping Giant mill complex and roughly 100 kilometres south of Balmoral's Detour Trend Gold Project.
Mr. Darin Wagner (P.Geo.), President and CEO of the Company, is the non-independent qualified person who has approved the scientific and technical information contained in this news release. Mr. Wagner has reviewed the historic work on the N1 and N2 Properties and visited the N2 Property.
About Balmoral Resources Ltd
Balmoral Resources Ltd. (
TSE:BAR) (OTCMKTS:BALMF) is a Canadian-based discovery company focused on high-grade nickel and gold discoveries on its wholly owned, 700+ square kilometre Detour Trend Project in Quebec, Canada. With a philosophy of creating value through the drill bit and a focus on proven productive precious/base metal belts, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery and definition of high-grade, Canadian base metal and gold assets.
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