The Toronto Venture Exchange (TSX-V) has approved a transaction in which Quadro Resources obtained an option to acquire a 70% interest in the platinum/palladium prospective Seagull Lake property from fellow-listed White Metal Resources.
The project, which covers 7 539 ha, is located about 50 km south of Impala Canada's Lac des Iles mine, previously North American Palladium, and is about 28 km north of the copper, nickel, and platinum group element discoveries of Rio Tinto and Panoramic Resources.
The terms of the option agreement state Quadro will earn a 70% interest in the property over a three-year period, alongside cash payments totalling $275 000 over this period.
During this time, Quadro will be issuing a total of 6.5-million shares, and $1.5-million will be spent on exploration on the property.
The combination of cash payments and share issuances comprise a total value of about $990 000, and after vesting a 70% interest, a joint venture is formed on the basis of 70:30 expenditures with the issuance of a 0.5% net smelter return royalty upon dilution to less than 10%.