Vancouver, BC / TheNewswire / March 30, 2017 – BonTerra Resources Inc. (TSX.V-BTR, US: BONXF, FSE: 9BR1) (“BonTerra”) and Durango Resources Inc. (TSX.V-DGO, OTC: ATOXF, FSE:86A1), (“Durango”) are pleased to announce that they have entered into an option agreement (the “Agreement”) under which BonTerra can earn a 100% interest in Durango’s Trove Windfall Lake Property located in the Windfall-Urban Gold Camp district of northern Québec (the “Trove Property”).
The Trove Property, surrounded by properties held by Osisko Mining Inc. (TSX: OSK) (“Osisko”) and Beaufield Resources Inc. (TSXV: BFD) (“Beaufield”), is a direct extension of the south west mineralized trend that BonTerra is currently exploring on its Gladiator Gold Deposit and Coliseum Gold Property. The BonTerra technical team is experienced and very familiar with the type of geology hosted by the Trove Property.
Pursuant to the Agreement, BonTerra may earn a 100% interest in the Trove Property from Durango in exchange for making the following payments and undertaking the following exploration work on the Trove Property:
- BonTerra must pay Durango CDN$150,000 in cash and issue Durango 1,500,000 BonTerra common shares within 2 business days of the date the TSX-V approves of the transaction (the “Closing Date”);
- on or before the first anniversary of the Closing Date, BonTerra must pay Durango a further CDN$150,000 in cash and issue Durango an additional 1,500,000 common shares;
- on or before the second anniversary of the Closing Date, BonTerra must pay Durango $200,000 and complete a minimum of CDN$1,000,000 in exploration expenditures, upon which BonTerra will have exercised its option and full title of the Property will be transferred from Durango to BonTerra;
- BonTerra will issue an additional 2,000,000 common shares to Durango as a discovery bonus if, and when, BonTerra produces a technical report compliant with National Instrument 43-101 showing a minimum 500,000 ounces inferred resource of gold; and
- Durango will retain a 2% net smelter return royalty in respect of the Trove Property. BonTerra may purchase 50% of this royalty at any time for $1,000,000.
Marcy Kiesman, CEO of Durango, stated “The next exploration stage of the Trove Property requires immediate expenditures for drilling, which Durango’s management is unwilling to finance at current share prices due to the dilution which would result for our shareholders. Entering into this transaction with BonTerra provides Durango with cash flow and allows Durango to share in BonTerra’s potential success in working the Trove Property as a shareholder of BonTerra. BonTerra brings a strong management team and a talented exploration team for future exploration on the Trove, having made a significant gold discovery in the Windfall Lake area on the eastern section, making this partnership an exciting opportunity for Durango. Durango recently acquired additional strategically located ground in the Windfall Lake area adjacent to Osisko and within a few kilometres of the Trove Property boundary, and plans to advance this newly-acquired property in the same manner as the Trove Property was advanced. If Bonterra has success exploring the Trove Property, Durango may be better positioned finance large exploration drilling programs on its other projects. We are very excited about this transaction and the year ahead.”
The Agreement is subject to TSX Venture Exchange approval and will be filed on SEDAR under the profiles of each of Durango and BonTerra at www.sedar.com.
Durango is a natural resources company engaged in the acquisition and exploration of mineral properties. The Company has a 100% interest in the Mayner’s Fortune and Smith Island limestone properties in northwest British Columbia, the Decouverté and Trove gold properties in the Abitibi Region of Quebec, and certain lithium properties near the Whabouchi mine, the Buckshot graphite property near the Miller Mine in Québec, the Dianna Lake silver project in northern Saskatchewan, and the Whitney Northwest property near the Lake Shore Gold and Goldcorp joint venture in Ontario.
For further information on Durango, please refer to its SEDAR profile at www.sedar.com.
Marcy Kiesman, Chief Executive Officer
Telephone: 604.428.2900 or 604.339.2243
This document may contain or refer to forward-looking information based on current expectations, including, but not limited to the acquisition of additional ground, the option of the Trove Property or any other properties held by Durango, the entering into of any transaction with any third parties, exploration results on the Trove Property or the New Windfall Property and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties relating to Durango, please refer to the Company’s prospectus filed on its SEDAR profile at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.