Anconia Resources Corp. is exercising the option to fully acquire the Grenfell gold property in Ontario, it said April 10.
The company holds a 60% stake in the property under a 2014 earn-in deal with Cadillac Ventures Inc. To acquire the remaining 40% stake in the property, Anconia will issue 5 million common shares to Cadillac.
Cadillac will retain a 2% net smelter returns royalty on the property, half of which Anconia can purchase for C$1 million up to 2 years after starting commercial production.
The property comprises 16 patented mining claims and 2 staked claims covering 3.8 square kilometers. The property is about 5 kilometers along strike from Kirkland Lake Gold Ltd.'s Macassa mine.