About the Beschefer Project
The Beschefer Project covers 647 hectares and is located in the Northern Abitibi Greenstone Belt, 14 km east of the past-producing polymetallic Selbaie Mine, 45 km northeast of the Casa Berardi Mine and 28 km from Wallbridge's Fenelon Gold Property. Historically, the area has mainly been explored for volcanogenic massive sulfide deposits similar to the Matagami camp and the Selbaie Mine.
Gold mineralization was discovered in the B-14 Zone in 1995 by Billiton Canada Inc. and the property has seen very limited exploration before the involvement by Excellon in 2011, which completed approximately 17,000 metres up to 2013. Excellon's programs produced very positive results, extending the B-14 mineralization down to almost 600 m vertical depth, discovering the upper shear zone and intersecting the highest-grade intersections on the property, including 55.63 g/t Au over 5.57 metres and 13.07 g/t gold over 8.75 metres. Excellon's primary focus is on production and exploration at its Platosa Mine and Miguel Auza Property in Mexico. There has been no exploration at Beschefer since 2013.
Terms of the Agreement
The Option to acquire Beschefer (the “Option”) may be exercised by the Company by incurring and funding aggregate exploration expenditures on the project (“Expenditures”) in the following amounts and issuing common shares in the capital of the Company (“Common Shares”) over a three- year period, as follows:
(a) the Company shall issue 500,000 Common Shares promptly following execution of this Agreement on October 16, 2018 (the “Effective Date”);
(b) the Company shall incur C$500,000 in Expenditures on or before the first anniversary of the Effective Date;
(c) the Company shall issue 1,000,000 Common Shares promptly after the first anniversary of the Effective Date;
(d) the Company shall incur C$2,000,000 in Expenditures on or before the second anniversary of the Effective Date;
(e) the Company shall issue 2,000,000 Common Shares promptly after the second anniversary of the Effective Date;
(f) the Company shall incur C$2,000,000 in Expenditures on or before the third anniversary of the Effective Date; and
(g) the Company shall issue 3,500,000 Common Shares on or before the third anniversary of the Effective Date.
Wallbridge may accelerate Expenditures and the Option will be effectively exercised when Wallbridge has funded and incurred Expenditures which total C$4,500,000 and issued Common Shares which total 7,000,000 Common Shares.