Uragold Bay Resources Inc. announce that it has signed a letter of intent with a private vendor regarding the acquisition of 100% interest in four claims located in Saint-Simon-les-Mines, Quebec. The acquired claims expand the Beauce Placer Gold property to the northeast. This will add 1,700 meters to the 550 meters of un-mined paleoplacer gold channel.
Uragold will modify the recently announced work program of sampling and trial mining the Beauce Placer Gold tailings project to include a drilling campaign to upgrade historical gold deposits to 43-101 standards. The Company will provide an updated work program for the property in the near future.
Material terms of the agreement are as follows (all amounts are expressed in Canadian dollars). In order to acquire its interest in the claims, the Company shall make the following payments to the vendor.
The Vendor agrees to grant Uragold the exclusive and irrevocable right to earn a one-hundred per cent (100%) interest in the Claims, in consideration of 1,866,000 common treasury shares of the Company plus a cash payment of $8,000.00
The transaction is made with a party that is non-related to the Corporation. The letter of intention is conditional to the approval of the Board of Directors of Uragold and the transaction is subject to approval by regulatory authorities. Further to the acquisition and its approval, the parties will proceed with the signature of a formal agreement and the titles of the claims will be transferred to the Corporation.