Golden Valley Mines granted an option to O3 Mining (formerly Alexandria Minerals Corporation) to acquire an 80% interest in the Centremaque Gold Prospect (see press release dated April 25, 2017).
O3 Mining may earn the 80% interest in Centremaque by issuing treasury shares to Golden Valley over a four-year period from date of signing with a total value of $250,000 (of which shares with deemed consideration of $100,000 have been issued to date, and additional shares with deemed consideration of $50,000 will be issued in April 2020, and $100,000 in April 2021), and by conducting exploration activities totaling $4 million over the same four-year period, of which $250,000 had to be spent in the first year of the option agreement, and an additional $500,000 by the 2nd anniversary (extended to July 31, 2019 and completed). If vested, Golden Valley will retain a 20% Free-Carried Interest, which means that Golden Valley Mines shall not be responsible for any project costs, including without limitation, construction costs, exploration costs, mine costs and operating costs on the property, until the commencement of commercial production. In addition, Golden Valley Mines retains a 1.5% Net Smelter Royalty, of which 0.5% may be purchased by O3 Mining for $1,000,000.
A 5,200-metre drilling program is ongoing and recent results include 18.8 g/t Au over 1.3 metres in O3-C-19-011; 5.30 g/t Au over 1.9 metres in O3-C-19-010 and 3.65 g/t Au over 2.25 metres in O3-C-19-008 (see O3 press release dated October 21, 2019 for further information) as well as 9.3 g/t Au over 6.0 metres, including 25.7 g/t Au over 1.9 metres in CAX-19-016 (see O3 press release dated December 12, 2019).
For additional details with respect to the exploration and fieldwork programs completed to date on the Centremaque Gold Prospect, as well as for the details on the expenditures made to date by Alexandria (previously) and O3 (currently) on the project, please refer to Alexandria’s and O3’s continuous disclosure documents available at the SEDAR website (www.sedar.com) by accessing Alexandria’s and O3’s issuer profiles.