Falcon Gold Corp. said Feb. 7 that it entered into a letter agreement to acquire seven mining claims in northwest Ontario, contiguous to its recently optioned six cobalt-gold-copper claims in the historic Atikokan mining camp.
The claims comprise 25 units covering 390 hectares and host a past-producing Central Canada gold mine.
Under the terms, Falcon agreed to issue 325,000 shares and pay a total of C$141,500 in stages over a four-year period. It will also incur minimum exploration expenditures of C$100,000.
Once Falcon acquires a 100% interest in the claims, the vendor will retain a 2% net smelter return royalty, half of which can be repurchased by the company for C$1 million until the start of production.
