Troilus Gold Corp (TSX:TLG, OTCQX:CHXMF) has announced it has entered into a purchase and sale agreement with Ophir Gold Corp to sell three mining claims in James Bay, Quebec, that are contiguous to Ophir’s Radis lithium property.
The terms of the agreement provide for Ophir to acquire a 100% interest in the claims in return for the issuance of its 225,000 common shares to Troilus.
In addition, Troilus will retain a 2% net smelter return royalty (NSR) on the claims, while Ophir has the option to purchase back three-quarters of the NSR, reducing it to 0.5%, for $1.5 million.
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The closing of the transaction is subject to customary conditions, including the approval of the TSX Venture Exchange.
Ophir Gold is a gold exploration company focused on the exploration and development of its flagship property, the past-producing Breccia gold property located in Lemhi county, Idaho, as well as the new Radis property in James Bay, Quebec.
Troilus Gold is a Canada-based junior mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine towards production.
Contact the author at stephen.gunnion@proactiveinvestors.com