Pistol Bay Mining Inc. said Sept. 17 that it entered into an option agreement with 1544230 Ontario Inc. to acquire a 100% right, title and interest in the latter's 141 mining cells, covering a total of 7,130 acres, in the Pakwash Lake Area in the Red Lake mining district of Ontario.
Under the deal, Pistol Bay is required to pay a total of C$45,000 and issue a total of 500,000 shares over a three year period, while 1544230 Ontario will retain a 1.5% net smelter return royalty.
Pistol Bay shall have the right to acquire at any time half of the NSR for C$500,000.
The optioned properties are comprised of the Pakwash East block with a total of 1,760 acres and the Pakwash North block with a total of 5,370 acres, located east and south of Great Bear Resources Ltd.'s Dixie Lake gold property.
The company said that there is potential for gold and the historic resources of silver, copper, and zinc at the Confederation Lake side of the Red Lake mining district. However, the company noted that many of the historical drill holes in the area were not assayed for gold.
On Sept. 4, Belmont Resources Inc. secured an option to earn up to a 75% interest in the Fredart-Gerry Lake zinc-copper-silver-gold properties in Ontario from Pistol Bay.
