Beschefer East Project, Quebec, Canada
Project Snapshot:
Ownership: Option to earn 100%
Location: The Beschefer East Project is located approximately 90 km west of Matagami and 100 km north of La Sarre, Québec, with good road access and a powerline running through the Project.
Surface area: 55 claims covering 2,906 hectares.
Highlights:
- Along strike of the Beschefer Project, where historical drilling has identified 55.63 g/t gold over 5.57 metres, including 224 g/t over 1.23 metres. The extension of this structure has seen limited testing on the Beschefer East side.
- Historical hole 1172-99-30 intercepted 2.03 g/t Au over 6.1 metres with limited follow-up drilling.
- Hole 1172-13-40 intercepted 2.1 g/t over 5.4 metres, including 7.9 g/t over 0.9 metres
- Systematic exploration has outlined three targeted gold structures, each 2-3 km in size, open for expansion that are largely untested. These targets also have Cu-Ag potential hosted in a felsic volcanic complex.
Drill Hole | From (m) | To (m) | Length (m)1 | Au (g/t) |
1172-98-24 | 196.0 | 197.5 | 1.3 | 3.2 |
1172-99-30 | 127.7 | 128.7 | 1 | 4.99 |
| 184.1 | 184.7 | 0.6 | 5.38 |
| 191.8 | 197.9 | 6.1 | 2.03 |
1172-13-40 | 92.1 | 97 | 4.9 | 2.1 |
Incl. | 92.1 | 93 | 0.9 | 7.88 |
1172-13-41 | 37 | 43 | 6 | 1 |
Drill Hole | From (m) | To (m) | Length (m)1 | Cu (%) |
1172-98-28 | 146.57 | 151.4 | 4.8 | 0.26 |
1172-13-34 | 171 | 175 | 4 | 0.24 |
Notes:
- True widths of mineralization are not known.
- Some intervals presented vary from those in Figure 1 due to the table including re-assaying results.
Terms of the Definitive Agreement:
Under the terms of the Definitive Agreement, Melkior has the right to earn a 100% interest in the Project through an option, subject to a net smelter return royalty of up to 2.5% on certain claims made up of a historical NSR of 1.5% and 1% granted to SOQUEM. To earn an undivided 100% interest in the Project, Melkior must make total cash payments of $50,000, issue $500,000 worth of common shares in the capital of Melkior to SOQUEM and incur Work Expenditures of $1,500,000 in total, all in accordance with the anniversary dates in the table below:
Date | Cash | Shares | Work Expenditures |
On the Effective Date(1) | $50,000 | $50,000 worth of common shares issued at the higher of 0.20 per share or the weighted average price of the common shares for the 10 trading days immediately preceding the Effective Date | NA |
On or before the first anniversary of the Effective Date | $0 | $100,000 worth of common shares issued at the higher of 0.20 per share or the weighted average price of the common shares for the 10 trading days immediately preceding the first anniversary of the Effective Date | $375,000 in aggregate Work Expenditures |
On or before the second anniversary of the Effective Date | $0 | $150,000 worth of common shares issued at the higher of 0.20 per share or the weighted average price of the common shares for the 10 trading days immediately preceding the second anniversary of the Effective Date | $750,000 in Work Expenditures in the aggregate (including the $375,000 Year 1 Work Expenditures) |
On or before the third anniversary of the Effective Date | $0 | $200,000 worth of common shares issued at the higher of 0.20 per share or the weighted average price of the common shares for the 10 trading days immediately preceding the third anniversary of the Effective Date | $1,500,000 in Work Expenditures in the aggregate (including the Year 1 and Year 2 Work Expenditures) |
(1)Effective Date refers to the date that is 5 days after TSXV approval of the Definitive Agreement.
The Definitive Agreement and issuance of shares to SOQUEM thereunder is subject to TSX Venture Exchange (“TSXV”) approval and the Company’s filing requirements with TSXV. All common shares of Melkior issued under the Definitive Agreement will be subject to a hold period of 4 months and one day from the date of issuance.
