EGR Exploration Ltd. (TSX-V:EGR) announced that it has entered into an option agreement to sell the 6,879 hectare Urban Barry gold property in Quebec, with its 122 claims, to Harvest Gold Corp.
The gold-focused exploration company said it will receive a total of $90,000 in cash and 1.75 million Harvest Gold common shares, in three tranches, plus a 2.0% net smelter return (NSR) royalty.
"We now are shareholders in Harvest Gold, a Quebec focused gold exploration company that will move the Urban Barry property forward," EGR Exploration CEO Daniel Rodriguez said in a statement.
"This mining district is heating up with recent transactions, led by the 50/50 JV of Osisko's Windfall property with Gold Fields Limited and infrastructure announcements with Hydro-Quebec," he added.
EGR also noted that Harvest Gold is required to spend a minimum of $300,000 in exploration expenditures in the first two years.
The company added that it will receive a further one million common shares upon Harvest Gold announcing a 43-101 compliant resource estimate of at least one million ounces of gold in the Inferred category.
EGR Exploration is exploring for gold in the Detour-Fenelon Gold Trend, about 300 kilometres (km) north of Timmins, Ontario. The company’s 40,255-hectare Detour West gold project is contiguous to Agnico Eagle’s property, which contains the Detour Lake Gold Mine and is approximately 20 km from the mine.