Ranchero Gold Corp. announced its entry into an option agreement with Recharge Resources Ltd. (Recharge). Through this agreement, Ranchero has the opportunity to acquire a 100% interest in the Pinchi Lake Nickel Project (Pinchi Project).
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This project comprises six mineral claims spanning 3,917 hectares, positioned approximately 15 to 30 km northwest of Fort St. James and 120 km northwest of Prince George in central British Columbia.
The Pinchi Project represents a promising nickel exploration endeavor housing awaruite (Ni2Fe-Ni3Fe), a natural nickel and iron alloy comprising roughly 75% nickel, 25% iron, and devoid of sulfur. Previously, a former property holder conducted a comprehensive assessment, including a 1055 line-kilometer high-resolution survey via helicopter in 2011, alongside a geochemical sampling initiative.
Recharge also carried out additional geochemical sampling in 2021. It is important to note that the Pinchi Project is encumbered by an existing 2% net smelter returns royalty, which is obligated to a third party.
Under the terms of the Option Agreement, Ranchero has the potential to acquire a 100% interest in the Pinchi Project, while Recharge will receive a 1% net smelter returns royalty. To fulfill this agreement
- Ranchero is required to issue 835,000 common shares in its capital to Recharge. This issuance must occur within five business days after Ranchero secures approval from the TSX Venture Exchange for the Agreement.
- Ranchero is obligated to make specified cash payments to Recharge as part of the Option Agreement terms. These payments consist of $25,000 due by the first anniversary of the Agreement, followed by $2,000,000 due by the second anniversary, and finally, $3,000,000 due by the 3rd anniversary date.
- Ranchero must allocate funds towards exploration and development on the property, totaling $1,200,000 before November 30, 2026. This allocation necessitates at least $40,000 before June 30, 2024, an additional $60,000 before November 30th, 2024, and an additional $100,000 before November 30th, 2025.
Source: https://rancherogold.com/