Golden Ridge Resources TSX-V: GLDN Ltd. has signed an option agreement whereby Golden Ridge can acquire a 100-per-cent interest in the Royalle property located in British Columbia’s prolific Bralorne mining camp, by incurring certain exploration expenditures, and making cash and share payments over a four-year period.
About the Royalle property
From 1928 to 1971, the Bralorne and nearby Pioneer and King mines produced a total of 4.15 million ounces of gold from 7.9 million tons of ore, at an average head grade exceeding half an ounce per ton. Previous drilling on the Royalle property focused on the numerous bedrock gold showings exposed at high elevations. Recent Aeromag, AeroTEM II and ZTEM heliborne geophysical surveys have confirmed that government geology maps correctly interpreted the Cadwallader Break, the regional-scale fault structure responsible for gold mineralization at Bralorne, to be underlying Cadwallader Creek on the Royalle property. Drill holes have now been planned to target the interpreted second and third order fault splays which branch off the Cadwallader Break, since it is these structures that host the high-grade gold-quartz veins at Bralorne.
Chief executive officer Michael Blady comments: “The geological and structural setting of the Royalle property is analogous to that of the nearby Bralorne and Pioneer mines. The rocks which lie along the Cadwallader Break on the Royalle are similar to the serpentinites and Pioneer greenstones hosting veins at Bralorne. Most of the arsenic and gold anomalies on the property appear to be associated with the contacts of serpentinites along the Cadwallader Break. We believe the Royalle property has excellent potential for the discovery of a large-tonnage high-grade gold deposit. An aggressive diamond drilling program is planned for the fall/winter of 2018 to test the targets outlined by our geological team, which are hidden beneath the alluvial valley cover.”
The property is accessed via the all-season Lillooet-Pioneer road, making the property ideal for low-cost, year-round drilling. Golden Ridge will immediately begin the permitting process for a fall/winter diamond drilling program.
Tom Carpenter, PGeo, of Discovery Consultants, Vernon, B.C., is a consultant to the company, and is the qualified person as defined by National Instrument 43-101, who has reviewed the preparation of the technical data in this news release.
About the Royalle option agreement
Under the terms of the agreement, which is subject to TSX Venture Exchange approval, Golden Ridge can earn 100-per-cent interest in the Royalle property by issuing 480,000 common shares and $160,000 in cash to the property vendors and by incurring exploration work on the property of $580,000 over the term of the agreement.
- 240,000 shares upon exchange approval;
- 240,000 shares 365 days from signing.
- $15,000 upon exchange approval;
- $15,000 on or before Dec. 31, 2018;
- $30,000 on or before Dec. 31, 2019;
- $50,000 on or before Dec. 31, 2020;
- $50,000 on or before Dec. 31, 2021.
- $50,000 on or before Dec. 31, 2018;
- $100,000 on or before Dec. 31, 2019;
- $200,000 on or before Dec. 31, 2020;
- $230,000 on or before Dec. 31, 2021.
There is a 2.5-per-cent net smelter return royalty in favour of the vendors or which 1 per cent is purchasable by Golden Ridge for $1.7-million any time prior to the commencement of commercial production. In addition, the vendors will receive an additional $150,000 on completion of a positive feasibility study and an addition $250,000 upon achievement of commercial production.
The vendors include non-arm’s-length parties. Mr. Blady is a director and the president and CEO of the company, and Chris Paul is the company’s vice-president of exploration as such related party considerations pursuant to exchange Policy 5.9 and Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions will apply. The company proposes relying on Section 5.5 (a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7 (1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the transaction insofar as the transaction will involve interested parties will not exceed 25 per cent of the company’s market capitalization.
About Golden Ridge Resources Ltd.
Golden Ridge is a TSX Venture Exchange-listed exploration company engaged in acquiring and advancing mineral properties located in British Columbia. Golden Ridge currently has an option to acquire a 100-per-cent interest in the 1,700-hectare Hank gold-silver-lead-zinc property located in the Golden Triangle district, approximately 140 kilometres north of Stewart, B.C. Golden Ridge may earn the 100-per-cent interest by performing $1.7-million of exploration work by the end of 2018.