Endurance Gold Corporation (EDG - TSX.V) announces that it has entered into an option agreement with Mount Logan Resources Ltd. ("Mount Logan"), a private Ontario corporation, whereby Mount Logan can earn up to a 70% interest in the Pardo Property.
The Pardo Property, located 65 kilometres northeast of Sudbury, Ontario, covers 2,864 hectares, and is largely underlain by flat lying, Proterozoic aged conglomerates resting unconformably on Archean aged metasediments. Gold mineralization defined to date on the property is spatially associated pyritic and quartz pebble bearing portions of the conglomerates, at or proximal to the unconformity. Endurance has completed approximately $1 Million in exploration on the claim block, including two drilling campaigns totaling 1,626 metres in 97 holes. Intercepts to 1.67 grams per tonne ("gpt") Au over 8.4 metres have been returned to date.
Endurance is currently in the fourth year of a four year option to earn a 100% interest in the property, subject to a 3% NSR, of which 1.5% can be purchased for $1.5 Million at any time. Immediately upon TSX Venture Exchange acceptance of this transaction, Endurance will complete its obligations to earn that interest, by making a final cash payment of $40,000 and 100,000 share issuance of Endurance Gold Corporation common stock to the underlying vendors. Duncan McIvor, President and CEO of Endurance Gold Corporation, is a minority underlying vendor of the property.
Under the terms of the Option Agreement, Mount Logan can earn an initial 55% interest in the property by completing $1,000,000 in exploration expenditures and making cash payments totaling $200,000 to Endurance over a three year period.
On completion of its 55% earn-in, Mount Logan has a one-time option to increase its ownership interest to 70%, by completing an additional $1,000,000 in exploration, and making a further cash payment of $250,000 to Endurance.
On completion of either its 55% or 70% earn-in, Mount Logan will form a joint venture with Endurance to continue the exploration and development of the project. In the event either party dilutes to a 10% or less joint venture interest, that interest will convert to a 1.5% Net Smelter Royalty, and a one time cash payment of $500,000 on the commencement of commercial
The transaction is subject to TSX Venture Exchange acceptance.
Duncan McIvor, P. Geo, is the Qualified Person as defined by National Instrument 43-101, and is responsible for the content of this news release.
ENDURANCE GOLD CORPORATION
The TSX Venture Exchange or any other regulatory authority has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this news release.