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Silver Range options expanded South Kitikmeot project to Amaroq Gold

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Silver Range options expanded South Kitikmeot project to Amaroq Gold

Silver Range Resources Ltd. said March 6 that it optioned the expanded South Kitikmeot gold project in Nunavut, Canada, to Amaroq Gold Corp., allowing the latter to purchase the project in exchange for cash and share payments spread over five years.

South Kitikmeot covers the Esker Lake, Gold Bugs, Qannituq, Uist, Ujaraq, Hiqiniq and Bling prospects. On Feb. 1, Silver Range secured prospecting permits spanning 47,460 hectares in the area of its Bling, Gold Bugs and Esker Lake properties, expanding the larger South Kitikmeot project to 72,810 hectares.

On March 5, Silver Range signed the letter of intent with Amaroq, contemplating Amaroq's acquisition of the South Kitikmeot project. Under the deal, Amaroq will pay about C$1.7 million and issue 5% of its shares at the time of its IPO and a further 1 million shares in tranches over four years.

Silver Range will retain a 3% net smelter royalty over the project and up to a 2% royalty may be purchased for C$4 million. Silver Range will also be the operator for work at the project during the first season and beyond, at Amaroq's discretion, and will be paid a management fee equal to 5% of exploration expenditures.

The companies are planning a summer field program at the project, including systematic gold-in-till sampling and magnetic and electromagnetic field surveys to locate new targets and expand existing ones.