Thunder Gold (TGOL.V) has executed a definitive agreement with Clifford Hickman, to acquire a 100% interest in the Thunder Lake Property, consisting of 29 mineral claims, totalling 625 hectares, it said on Tuesday.
The property is immediately west and contiguous with the company's flagship Tower Mountain Property located 40 kilometres west of the port city of Thunder Bay, Ontario, the company said.
The company can earn a 100% interest in the Property by issuing 250,000 common shares of Thunder Gold to the Optionor, subject to a 4-month hold period, said the company.
The Optionor retains a 2% net smelter royalty (NSR) on all mineral and/or gas production from the Property, half of which may be purchased, at any time, by the company for C$1 million, it added.
The company also retains the right to match any bona-fide offer the Optionor may receive on the remaining 1% NSR.
The terms outlined are subject to approval by the TSX Venture Exchange, it added.
"Acquiring the Thunder Lake Property increases the footprint of the Tower Mountain Property to over 7,625 hectares, providing additional future working space that may be invaluable as we continue to advance and de-risk Tower Mountain," said CEO Wes Hanson. "Large scale resource opportunities require vast working space and the Thunder Lake Property offers space in addition to prospectivity for nickel, copper and gold based on historical assessment reports."