Delta Resources Sells the Bellechasse-Timmins Property for $1.7M to Yorkton Ventures
KINGSTON, July 7, 2020 - Delta Resources Ltd. ("Delta") (TSXV:DLTA) is pleased to announce that it has signed an agreement with Yorkton Ventures Inc. ("Yorkton") to sell its 100% interest in the Bellechasse-Timmins property (the "Property") in southeastern Quebec for $1,700,000. To acquire a 100% interest in the Property, Yorkton will:
- Make a $100,000 cash payment within 10 days of signing of a definitive agreement,
- Make a $250,000 cash payment within 90 days after receiving Exchange Approval,
- Make a $350,000 cash payment within 200 days after receiving Exchange Approval,
- Make a $450,000 cash payment no later than June 1, 2021; and
- Make a $550,000 cash payment no later than September 1st, 2021.
Yorkton will also commit to paying Delta a 1% Net Smelter Return (NSR) royalty on any and all commercial production derived from the Bellechasse-Timmins property. Yorkton may re-purchase 0.5% of the NSR for $1 Million at any time.
A 6% finder's fee will be payable by Delta to an arm's length third party once the total amount of $1,700,000 has been paid by Yorkton.
"We are very pleased to have concluded this sale with Yorkton Ventures. Delta is thrilled to be passing the torch to Yorkton and we are confident that they can advance this project to the next level. We are also pleased to be adding funds to our treasury on a non-dilutive basis in order to advance our exploration efforts at Delta-1 in Thunder Bay, Ontario and Delta-2 in Chibougamau, Quebec." commented Andre Tessier, President and CEO of Delta.
The agreement is subject to regulatory approval.
About Delta Resources Limited
Delta Resources Ltd. is a Canadian mineral exploration company focused on growing shareholder value through the acquisition of high-potential gold and base-metal projects in Canada, exploring these projects with state-of-the-art methods, and potentially developing these projects into mines.
On October 3rd, 2019, Delta announced the acquisition of the Eureka Gold Discovery in the Thunder Bay area and on October 16th, 2019, the acquisition of the Delta-2 Property which hosts the R-14 Gold Prospect in the Chibougamau Mining District of Quebec.
Delta also owns a 100% interest in the Bellechasse-Timmins gold deposit in southeastern Quebec, Canada which contains a 43-101 gold resource of 171,000 ounces at an average grade of 1.83 g/t gold in the indicated category and an additional 95,000 ounces at an average grade of 1.36 g/t gold in the inferred category (SGS Canada Inc., Bellechasse-Timmins Property Resource Estimate, Southeastern Quebec, August 1, 2012).
The company's focus is currently to continue building a strong portfolio of mineral exploration properties with a high potential for economic discoveries in Canada.
ON BEHALF OF THE BOARD OF Delta Resources Ltd..
Andre C. Tessier
President, CEO and Director
www.deltaresources.ca
We seek safe harbor. 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. The TSX Venture Exchange has not approved nor disapproved of the information contained herein.
For Further Information:
Frank Candido, Director, VP Corporate Communications
Tel : 514-969-5530
fcandido@deltaresources.ca
or
Andre Tessier, CEO and President
Tel: 613-328-1581
atessier@deltaresources.ca
Cautionary Note Regarding Forward Looking Information
Some statements contained in this news release are " "forward looking information" within the meaning of Canadian securities laws. Forward looking information include, but are not limited to, statements regarding the use of proceeds of the non-brokered private placement and payment of the debt settlements. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Investors are cautioned that forward-looking information is inherently uncertain and involves risks, assumptions and uncertainties that could cause actual facts to differ materially. There can be no assurance that future developments affecting the Company will be those anticipated by management. The forward-looking information contained in this press release constitutes management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event, except as required by law.
SOURCE: Delta Resources Ltd.