Pelangio Exploration Inc. said Sept. 10 that it agreed to acquire the mineral rights to all, or a portion of, 24 patented claims in Ontario from the Kean Group and 2522962 Ontario Inc.
The gold-prospective claims, known as the Dalton property, cover around 330 hectares in the Porcupine mining camp in Timmins.
Under the terms, the company is required to pay C$220,000, issue 400,000 shares and spend C$750,000 on exploration by the third year of the deal, securing TSX Venture Exchange approval.
Pelangio will serve as operator of the project. Upon exercise of the option, Pelangio will grant a 3% net smelter returns royalty, while it can repurchase a 1% royalty for C$1 million.