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GoldON to acquire Rainy gold project in option deal

GoldON Resources Ltd. said Oct. 4 that it entered into an option deal with a private vendor to fully acquire the Rainy gold project in Ontario.

Rainy contains 26 new claims, including three distinct, non-contiguous claim blocks. Rainy also adjoins to New Gold Inc.'s Rainy River gold project, which is slated to begin production in mid-2017.

In exchange, GoldON will pay C$89,716.50 in cash over a four-year period and issue 100,000 of its shares over a two-year period to the private vendor. The vendor retains a 2% net smelter returns royalty, of which GoldON may repurchase half for C$1 million.