Vancouver-based Rea Gold has entered into an agreement to buy a 15% net smelter return on the multi-mineral Discovery zone at its wholly-owned Adams Lake property from Allan Hilton of Kamloops, B.C.
Under the terms of the agreement, Mr Hilton will receive 50,000 Rea Gold shares and a $1.50 royalty for each ton milled.
The Discovery zone is located approximately 1,000 m west of Rea Gold and Minnova Inc.’s Silver Zone joint venture property in the Adam’s Lake area 28 miles north of Kamloops.
According to President Larry Reaugh, the Discovery zone contains 267,720 tons of average grade 0.190 oz gold per ton, 2.14 oz silver, 2.25% zinc, 2.14% lead and 0.57% copper.
Following the acquisition, which is subject to regulatory approval, Rea Gold will own the 5% net smelter return on the Adams Lake property.
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