Balmoral Resources Options N1 & N2 Projects to Wealth Minerals
Balmoral Resources Ltd. (“Balmoral” or the “Company”) (TSX: BAR; OTCQX: BALMF) reported that it has agreed to option it’s N1 and N2 Properties, located along the Casa-Berardi Gold Trend in Quebec, to Wealth Minerals Ltd. (TSXV:WML)(“Wealth”). Under the terms of the Option Agreement, Wealth will be granted an option to earn an initial 51% interest in the Project by completing $2.2 million dollars in exploration on the Project over 3 years, including a minimum of $1.2 million in drilling, and issuing 3.0 million common shares to Balmoral (representing approximately 14% of the currently outstanding shares of Wealth) (see table 1 below). Under a second option Wealth may earn an additional 24% interest in the Project (for an aggregate 75% interest) through additional expenditures of $2.8 million (for total aggregate expenditures of $5.0 million) and making cash payments of $600,000 to Balmoral. Balmoral currently holds a 100% interest in the Project. The Option Agreement will require Wealth to receive the approval of the TSXV.
“We are pleased to have found a partner to move the N1-N2 Project forward while we concentrate on the expansion of our nickel and gold discoveries at Grasset and Martiniere” said Darin Wagner, President and CEO of Balmoral. “Pending the acceptance of the agreement by the TSXV our shareholders will have results from another drill program in the gold space to look forward to in 2015 with the reactivation of the N2 Project.”
