Lucky Minerals (TSX-V:LKY, OTC:LKMNF) Inc announced that it has entered into an arm's length option agreement to acquire 100% of the previously explored Prudhomme polymetallic project in Quebec, which is jointly held by Fire Gold Resources Inc and Patricia Lafontaine.
The exploration and development company said to acquire 100% of the property it must incur at least C$4 million in exploration expenditures over four years, which includes a minimum of $1.5 million in the first two years.
As well, Lucky Minerals (TSX-V:LKY, OTC:LKMNF) must issue a total of C$750,000 in company shares in tranches over a period of three years.
And, Lucky Minerals must make milestone cash payments to the sellers of up to C$6.25 million in total should the Prudhomme project reach the commercial production stage.
The company added that it will consolidate its shares on a 1-for-10 basis before completing a private placement financing for a minimum of C$750,000.
Lucky Minerals is an exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world-class deposits. Lucky owns a 100% interest in the Fortuna Property.
The company's Fortuna project comprises 12 contiguous, 550-square kilometres (55,000 hectares, or 136,000 acres) exploration concessions. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.