Canadian explorer Dynasty Gold has secured a 100% interest in the Thundercloud property, in the Wabigoon greenstone belt of western Ontario, from Teck Resources.
The junior has signed an amending agreement with Teck, whereby Dynasty will be deemed to have exercised its option pursuant to an agreement dated January 2018.
Exercise of the option, upon completion of a cash payment, will result in Dynasty acquiring a 100% interest in the gold property, subject to Teck retaining a 2% net smelter returns royalty.
In consideration of Dynasty being deemed to have exercised its option and Teck waiving its back-in right, the company will make a C$100 000 payment, and will pay C$2-million upon a production decision.
Teck has been granted the right to receive 40% of any net sale proceeds if the property is sold, or optioned, within six years of signing the amending agreement.
Historic drilling on the property intersected 14 g/t gold over 3 m including 192.7 g/t gold over 0.55 m.