Silver Quest Resources Ltd. (TSX VENTURE:SQI) has announced that it has entered into an option agreement with a private company controlled by Kal Malhi and Paul Dadwa, in an arm's length transaction to acquire a 100% interest in 100 quartz mineral claims covering approximately 1,960 hectares located in the central Yukon, approximately 55 kilometres northeast of Keno City, known as the Bouvette property.
Under the terms of the agreement, the Company can acquire a 100% working interest in the Property by making aggregate cash payments of $100,000 and issuing an aggregate of 600,000 common shares to the Vendors over a three year period and incurring $800,000 of exploration expenditures over a two year period. The Vendors have retained a 2% net smelter return ("NSR") royalty on the Property, with the Company having the right to buy-back one-half of the royalty for a cash payment of $1,000,000 at any time after exercising the option. The option agreement is subject to regulatory acceptance. All securities issued pursuant to the option agreement will be subject to a four month hold period trading restriction.
The Property lies within the Tintina Gold Belt and is contiguous to the north side of Atac Resources' ("ATC") Rau Gold Project. ATC announced final 2010 drill results from the Tiger Zone within their Rau Gold Project (see ATC news release dated December 15, 2010) including hole Rau-10-132, which intercepted 8.91 grams per tonne gold over 32.64 metres. The Property is approximately 12 kilometres northwest of the Tiger Zone and shares similar geological characteristics, such as rock type, rock age and fault structures, as mapped on government surveys.
A summer 2011 exploration program will be planned to include geological mapping, geochemistry and trenching, directed towards drill target definition.
Source: Silver Quest Resources Ltd.