Canada Silver Cobalt Works Inc announced that it has increased its land package in northern Quebec through an acquisition agreement to buy the 16 Chute-des-Passes property claims jointly owned by Soquem Inc and Mines Coulon Inc.
The company said the property is adjacent and northeast of its Graal-Nourricier-Lac Suzanne property in the Lac St-Jean region where its ongoing drill program is located.
“The company intends to quickly adjust and expand its drill permits as the drill program is already in progress with two drills on the Graal property,” Canada Silver Cobalt said in a statement.
“The 16 new claims cover an area of 888.56 hectares. The agreement is for the acquisition of 100% of the Chute-des- Passes property in return of payment of $10,000 in cash and each company will retain a NSR (net smelter royalty).”
READ: Canada Silver Cobalt Works kicks off drilling at the Graal-Nourricier-Lac Suzanne property in Quebec
In addition to the $10,000 cash payment, the company said it has granted Soquem the right to receive a 0.5% NSR royalty on the property, half of which is redeemable for $125,000, in consideration for the sale of its interest in the property.
Mines Coulon was granted the same terms in return for the transfer of its interest in the Chute-des-Passes property.
Existing royalty means the royalty on the net income of the smelter of 1% in favor of the Fond Minier Du Saguenay-Lac-Saint-Jean, of which 0.5% is redeemable for $500,000, the company said.
The total royalties on the property are 2% where 1% is redeemable for the sum of $750,000 between the different parties.
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