New Age Metals Options Bonanza Gold Project, Kenora Gold District, Ontario
Executive Summary
- New Age Metals Inc. entered an option agreement to acquire 100% of the Bonanza Gold Project (114 claims, 2,191 ha) in the Kenora Mining District, subject to a 2% NSR royalty (buy‑down to 1% for $1 M).
- The project contains multiple high‑grade surface grab samples ranging from 1.1 g/t Au up to 127 g/t Au and is drill‑ready with three‑year permits in place.
- The agreement includes staged cash payments, share issuances, work expenditures, and contingent milestone payments of $250k for a ≥1 Moz NI 43‑101 resource and an additional $250k for >2.5 Moz.
Key Details
- Option Structure – Cash & share consideration over four milestones (effective date, Year 1‑3).
- Effective Date: $40,000 cash + $125,000 worth of NAM shares.
- Year 1: $60,000 cash + $125,000 shares (escrow 6 mo) + $200,000 work spend.
- Year 2: $75,000 cash + $125,000 shares (escrow 6 mo) + $250,000 work spend.
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Year 3: $125,000 cash + $125,000 shares + $250,000 work spend.
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Royalty Terms – 2% NSR royalty retained by prospectors; NAM may repurchase 1% for $1 M.
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Milestone Payments – $250k upon completion of a NI 43‑101 compliant resource & technical report ≥1 Moz Au; additional $250k if the resource exceeds 2.5 Moz Au.
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Assay Highlights (Grab Samples) – 1.1, 3.7, 8.9, 13.2, 22.2, 31.9 and up to 127 g/t Au from five prospects (Triggs, Kite Lake, Stella, Blue Star, etc.).
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Infrastructure – Road access to all claim areas; proximity to provincial power grid; located ~25 km SE of Kenora (pop. ≈14,800).
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Permitting – Drill‑ready with three‑year permits already secured.
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Due Diligence – Early Sept 2025 site visit collected 25 grab samples from quartz veins and sulphide zones across a 4 km stretch; QA/QC performed by SGS Canada Minerals (RUSH fire assay).
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Qualified Person – Dr. William Stone, P.Geo., reviewed and approved technical disclosure per NI 43‑101.
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Strategic Rationale – NAM aims to build a district‑scale gold portfolio in Kenora to attract major producers; project adds exposure to the current gold price rally (≈US$3,830/oz).
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Related Corporate Activity – Recent upsized private placement ($4 M) with $2 M hard‑cash commitment from Eric Sprott; prior equity increase in MetalQuest Mining (~12% stake).
Notable Quotes
- Harry Barr, Chairman & CEO: “This new acquisition adds to our diversified mineral portfolio… a significant gold exploration project for the Company.”
- Farid Mammadov, VP Investor Relations: “Gold prices are at record highs… the response to our recent private placement indicates renewed investor interest.”