Northern Shield Resources Inc. said May 22 that it entered into an option agreement to acquire up to an 80% interest in the Five Island property in Nova Scotia.
The property is adjacent to the claim groups the company recently staked, two of which are being explored for iron-oxide-copper-gold mineralization.
Under the terms, Northern Shield can earn a 50% project interest by paying C$52,000, issuing 700,000 shares and incurring C$500,000 in exploration expenditures on the property within two years.
The company can increase its stake to 80% by paying another C$50,000, incurring C$1.5 million in exploration expenditures, and issuing 500,000 shares over an additional two-year period.
The seller will retain a 1% net smelter return royalty on the project, half of which can be bought back by Northern Shield for C$1 million.
In addition, the company noted that exploration is underway at its Shot Rock gold property, also in the Canadian province.
