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Montreal, Quebec--(Newsfile Corp. - April 4, 2025) - Bullion Gold Resources Corp. (TSXV: BGD) ("Bullion Gold" or "the Company") announces that the option agreement on the Bousquet property with Olympio Metals Limited (see press release dated March 18, 2025) has been accepted by the TSX Venture Exchange.
Option Agreement Details
To obtain up to an 80% interest in the Bousquet project, Olympio Metals will:
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Invest $2 million in exploration work.
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Pay a total of $1.25 million in cash and shares.
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Manage the exploration work.
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Ultimately, Bullion Gold will retain a 20% undivided interest.
Term of the agreement for 51% interest
Olympio will pay Bullion Gold:
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Upon approval by the authorities:
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$100,000 in cash
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$50,000 in OLY shares
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Deferred payments:
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Year 2: $100,000 in cash + $50,000 in OLY shares
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Year 3: $150,000 in cash + $50,000 in OLY shares
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Conditions for an additional 29%
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Years 4 to 6: $50,000/year in cash + $25,000/year in OLY shares
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Year 7: $150,000 in cash + $75,000 in OLY shares
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Year 8: $200,000 in cash + $100,000 in OLY shares
All issued shares will be subject to a four-month voluntary escrow.
Formation of a Joint Venture (JVA)
If OLY decides to exit the project once it has acquired 51% of the project, a joint venture will be formed and:
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Bullion will become the operator and will automatically obtain 51% in the project.
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Olympio's interest will be reduced to 49%.
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The project will continue to be developed on a pro rata basis with standard dilution factors.
Performance Bonuses (43-101)
Olympio will pay the following bonuses based on indicated gold resources or Eq:
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$1.50/ounce up to 250,000 ounces (max. $375,000)
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$1.00/ounce from 250,001 to 500,000 ounces (max. $625,000 including above)
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$0.50/ounce beyond 500,000 ounces (no maximum)
Exercise of the Option
Olympio may exercise the option at any time for 8 years, subject to:
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A progressive exploration investment (at a rate of $2 million over 8 years).
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Payment of the defined consideration.
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Satisfaction of conditions precedent (due diligence, regulatory approvals, etc.).
Bullion Gold Residual Rights
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Olympio will provide financing for the project until initial production.
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Bullion will retain a right of first refusal on the sale of its interest.
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If Olympio purchases the remaining 20%, Bullion will receive a 2% net smelter royalty (1% can be bought back for $1 million).
Financing
The Company is pleased to announce that it has closed a private placement (the "Offering"), pursuant to which it issued 3,333,333 flow-through shares of the Company at a price of $0.06 per flow-through share for gross proceeds of $199,999.98.