Spruce Ridge Resources (TSXV: SHL) this morning announced that it has amended an option agreement related to its Viking and Kramer properties, located near White Bay, Newfoundland. The original agreements date back to February 2016, wherein Spruce Ridge agreed to option out the properties to Anaconda Mining.
The amended option arrangement has now been assigned to that of Magna Terra Minerals (TSXV: MTT), following a transaction that saw Magna Terra acquire the interest in the property from Anaconda. The company has since initiated an exploration program focused on the larger Viking and Great Northern properties, which Spruce Ridge’s Viking and Kramer properties are a part of.
The amended option agreement is focused on the exploration of the properties, enabling Magna Terra to focus on the current and historic mineral resources on site. The Viking property hosts a historical indicated mineral resource of 63,000 ounces of gold at a grade of 2.09 grams per tonne, plus inferred resources of 20,000 ounces at 1.79 grams per tonne gold.
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Under the terms of the option agreement, Magna Terra can acquire a 100% interest in the properties via paying a total of $300,000 over four periods ending February 15, 2023. Up to 50% of this figure can be paid through the issuance of common share units, with each unit containing one common share and one half of a purchase warrant. The company will also retain a 0.5% net smelter royalty on the Viking Property, and a 2.0% net smelter royalty on the Kramer property.
Spruce Ridge Resources last traded at $0.075 on the TSX Venture.
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