BMEX Gold Inc (TSX-V:BMEX) said an option agreement for it to acquire 100% of the King Tut property in Quebec has been accepted for filing documentation by the TSX Venture Exchange.
The agreement with Greg Exploration Inc, dated August 11, 2020, comprises 120 mineral claims located in the Ligneris and Celoron townships. In consideration, the company said it has paid $300,000 and will issue two million shares.
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The acquisition is subject to a 2% net smelter royalty and an underlying 1% royalty in favor of Globex Mining Enterprises Inc on three claims. BMEX has the option to buy 1% of the royalty on the three claims at any time for a cash payment of $1 million.
It said mineral resource and prefeasability milestone payments of $500,000 each are subject to separate exchange approval if the payment is to be made in shares.
Junior explorer BMEX is focused on earning 100% interest in its two projects in the prolific Abitibi greenstone belt - The King Tut project and the Dunlop Bay asset, which has 76 mineral claims that cover 4,226 hectares.
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